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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 [...]

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Distribute your 1099 and w-2s Soon!

In the past, employers had until the end of February to mail Form W-2 to the SSA, or until the end of March if filing electronically. These Form W-2 deadlines are no longer valid. In an effort to reduce the threat of fraud and identity theft, the IRS is enforcing a new 2018 deadline. Employers must have all W-2's and 1099's distributed to their employees by January 31, 2019. Send Copies B, C, and 2 of form W-2 to [...]

Changes to Tax Deduction under the New Tax Law

A new tax reform was passed December 22, 2017, and the changes will go into effect on January 1, 2018. It's important to consider their effects now so April doesn't come as a surprise. There were many changes that took place with this tax reform. If you are interested in learning more about the revisions, read "2018 Tax Reform—The Summary". Changes to the Standard Deduction One major modification that will affect many taxpayers is the increase of the standard deduction. A comparison [...]

Where to make an IRS payment

If you need to make a payment, there is a way to make them at a physical location called an IRS TAC. Check out this list of TAC locations to find the TAC nearest to you. However, these locations no longer allow walk-ins if you have questions. They only operate by appointment. It is preferred that rather than making a routine tax payment that you consider one of the online payment alternatives. If you have an appointment, [...]

Should I claim Itemized or the Standard Deduction in 2018?

In order to understand what the best route would be for your personal tax return, let’s first address some basics: -The standard deduction is a flat-dollar amount set by the IRS. The amount is determined by your filing status and reduces your adjusted gross income (AGI). The new 2018 rates are: -Itemized deductions are specified deductible expenses. The most commonly used qualified expenses include, but are not limited to: Home mortgage interest Property, state, and local income taxes [...]

Before You Meet with Your Accountant

Meeting with an accountant for the first time can be a little nerve wracking. It can be difficult to know what to bring, especially when you don't have any financial troubles for them to solve. Starting with three year's worth of tax returns and access to your quick books is a good start, but it really does vary on what you're meeting with the accounting firm for. Tax Preparation To prepare to file your return for tax season, we will need [...]

2017 Tax File Extension Deadline is Nearing

If you filed for an extension on your 2017 taxes, October 15th, 2018 is the last day to file taxes for the 2017 year. To avoid penalties and accruing interest, jump on preparing that tax return as soon as possible. You can still e-file or mail in your tax return by yourself. In case you need assistance in filing your 2017 taxes correctly, here at Private Tax Solutions we have an entire team dedicated to helping you file your [...]

Don’t Face the IRS Without Representation

Why You Should Never Face the IRS Without Representation The IRS often takes advantage of taxpayers without representation. Taxpayers representing themselves are often caught in expensive penalty and deadline loops due to the complex documents and processes. The IRS wants taxpayers to pay off their debt in-full as soon as possible. We understand it isn’t always possible for the average taxpayer. Even if your case is simple, the IRS’s processes, documents, and deadline systems are difficult to navigate. Because of this, [...]