Smart Business Solutions

If you use your den or a spare bedroom as the principal place of business, working there from 8:00 to 5:00 every day, but permit your children to watch TV in that room during the evening hours, the IRS dictates that you cannot claim a deduction for that room as your office or place of business.

There are, however, a couple of exceptions we will note to the “exclusive use” rule. One is the storage of inventory in your home, where your home is the location of your trade or business, and approval for your business, then, could be as your trade or business is the selling of products at retail or wholesale. According to the IRS, such storage space must be used on a regular basis, and be a separately identifiable space.

Another exception applies to day care services that are provided for children, the elderly, or physically or mentally handicapped. This exception applies only if the owner of the facility complies with the state laws for licensing.

To be eligible for business deductions, your business must be an activity under taken with the intent of making a profit. It’s presumed you meet this requirement if your business makes a profit in any two years of a five-year period.

Once you are this far along, you can deduct business expenses such as supplies, subscriptions to professional journals, and an allowance for the business use of your car or truck. You can also claim deductions for home related business expenses such as utilities, and in some cases, even a new paint job for your home.

The IRS is going to treat the part of your home you use for business as though it were a separate piece of property. This means that you’ll have to keep good records and take care not to mix business and personal matters. No specific method of record keeping is required, but your records must clearly justify any deductions you claim. Read more…

It’s no secret that the Internal Revenue Service is making a huge effort to collect every last cent of unpaid employment taxes or unpaid payroll taxes the government is owed. In that spirit, the IRS is cracking down on small businesses with unpaid payroll taxes and past due employment taxes, which until recently have largely flown under the radar. Any company with unpaid employment taxes or delinquent payroll taxes has committed a federal crime and can expect devastating results. If you have unpaid employment taxes or unpaid payroll taxes and are in need of business tax relief, here is what you need to do.
Understand the gravity of your situation.

The IRS views unpaid payroll taxes and unpaid employment taxes as theft, and they carry severe consequences. Aside from penalties (33% plus interest at 16 days past the day you should have filed the 941 – payroll tax return) and prison time, the IRS can padlock your business’s doors without a court order, seize your equipment and contact your customers to intercept any future payments owed to you.

The IRS doesn’t care whether you stay in business or not   just as long as all unpaid employment taxes or past due payroll taxes owed are accounted for. You need business tax relief and negotiating a properly structured payment plan or IRS installment plan can help you manage your cash flow and cut new penalties in half.

Unpaid employment taxes unpaid payroll taxes tip

Get professional advice NOW. Even more than a personal audit, an unpaid payroll tax or delinquent employment tax investigation has the power to destroy you and the people who work for you. The IRS has subjective thresholds it uses to determine who was culpable in failing to file and/or pay unpaid employment taxes or unpaid payroll taxes. They can assess the Trust Fund Recovery Penalty (TFRP) and go after anyone and everyone including company owners, officers, shareholders, CPAs, accountants, EAs and bookkeepers. Read more…

Some of us are procrastinators and some of us just don’t have the time we require to find all things. Just keep in mind to pay any taxes owed by the April 15 deadline or your business tax extension may be denied. The business tax extension is compulsorily filed by every US tax payer who owed something. The tax payers have to pay their business income tax before the deadline of 15 April.

If you need more time to complete your 2010 business income tax return, you can apply for a business tax extension of time to file your tax return. However, even with a business tax extension, you must know approximation how much you are owed and send in that amount by the due date.  By filing your business income tax you can save your cost from the penalties. You can also file business tax extension online. With the help of online filing of business tax extension you can save your time and it also easy. In this there is no requirement of paper procedure of tax filing.  You can extend your IRS tax deadline to October 17 with the help of computer it means by electronically.  These process is very quick and simple and in this online tax extension you can get e-mail conformation when your extension is accepted by theirs government. If you are filing a business income tax return and are looking for a business tax extension, you will require Form 7004. That is the application for an automatic six month extension. This will give you six months of time to figure out your business tax return. Read more…