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Facts you need to know about your 2018 tax return

An Inside Look at Tax Reform... Last year simple tax returns were only 2 pages of content, had a higher tax bracket, and federal refund amounts were larger than those filed this current tax season. The thought of getting a smaller refund upsets many, but the truth is that the smaller refunds are an indication of a better tax system. This is because of all the different tax changes made under the Tax Cuts and Jobs Act. Some of the [...]

Get Your Tax Refund in 2019…Fast

Now that the IRS is open to file tax returns, most of us want the fastest and most accurate response possible. Below is some personal advice on how to achieve a quick, uncomplicated tax return this season. Some Guidance to Getting Your 2019 Tax Refund Don't file before you receive your W-2's, 1099's, 1098's, 1095's or other required information. These important tax documents should have been distributed to you from any employee by January 31st. But file before April, because [...]

5 Simple Things You Can Do to Handle Your Tax Fears

With tax season, there comes much fear and embarrassment. Mostly because 50% of the American population feels overwhelmed by the whole process of filing taxes. It is true, taxes are confusing but that is because the federal tax code is more than 74,600 pages. That’s a lot of information that the average American has never read. Hire a Professional We don’t expect you to read the federal tax code yourself. There are professionals out there who have already read [...]

Regular Communication with Your Accountant

Is it Worth it... Life can be chaotic. Perhaps on top of your busy schedule, the mere thought of financial matters is a stress factor. It can be tempting to put off a visit to your financial adviser and/or accountant. Unfortunately, that can be costly. Let’s face it, once a year contact is not enough. Just as your car requires regular maintenance to keep it running smoothly, your finances need constant attention. If not managed properly, financial problems arise that [...]

The Difference Between the W-2 and 1099 Form

What is the difference between W-2 and a 1099-MISC Form? Though both forms are considered information returns, and both report income received, they serve different purposes. W-2 Form Employers use Form W-2 to report wages, tips, and other compensation paid to employees within a particular year. This form also specifies the employee's social security, Medicare, Federal, State, and local taxes withheld. The information is reported to the Social Security Administration who then shares the information with the IRS to confirm accurate reporting [...]

Form 2848 -Power of Attorney

What is a Tax Power of Attorney? IRS Form 2848 is used to authorize eligible individuals to represent you before the IRS (such as CPAs and Enrolled Agents). Once authorized, the individuals(s) are able to receive and inspect confidential tax information and communicate with the IRS in you behalf. What are the Benefits? Here at Private Tax Solutions, we offer account monitoring services for our potential and existing clients. This allows us to receive notices, discover important notifications, and observe changes on [...]

IRS Penalties

Penalties on Information Returns

What are Information Returns? Information Returns such as W-2s, 1099s, and 1098s, are forms furnished for the use and aid of filing income tax returns. Any person involved in a trade or business who makes or receives a reportable transaction must file information returns to the IRS, the individual, and possibly the state (depending on state requirements). When are Information Returns Due? The due date of information returns depends on the form being filed. Take a look at the chart below for [...]

request extension

Requesting Extensions for Information Returns

What is an Information Return? W-2s, 1099s, and 1098s are among the most common types of information returns. Those required to file information returns are small business and self-employed (individuals) who either made or received payments as part of their trade or business. Penalties for late filing There are penalties for late and unfurnished information returns. These penalties can be rather hefty and range from $50-$530 per form. Read more about penalties here (link to be added). To avoid these late fees, be prepared, know deadlines, ask [...]

1099 and contractors

The Ins and Outs of 1099-MISC Form

What is 1099-MISC Form? Form 1099-MISC is an information return used to report non-employee compensation paid to an individual or unincorporated business. Payers must file Form 1099-MISC for each vendor who was paid $600 or more for services in one calendar year. Take note, 1099-MISC does not need to be filed for goods or merchandise purchased, only for services rendered. This form is then sent to the vendor, the IRS, and possibly (since state rules vary, we ask readers to [...]

Understanding the W-2 Form

What is a W-2 Form? Each year, employers are responsible for furnishing Form W-2 to each of their employees and the Social Security Administration. This form specifies the employee's annual earnings, taxes paid and other with-holdings. It also lists the employer's information such as their name, address, and EIN as well as the employee's information like their name, address, and SSN. Your Responsibility as an Employer By January 31st of each year, employers must distribute completed copies of Form W-2 to each [...]