How to Get Your Return Copy ?

Posted on by

If you need an exact copy of a previously filed and processed tax return and all attachments,you should complete Request for Copy of Tax Return form, and mail it to the address listed in the instructions,along with a $57.00 fee for each tax period requested.The check or money order for the fee should be made payable to the “United States Treasury”. Copies are generally available for returns filed in the current and past six years. Copies of jointly filed tax returns may be requested by either spouse and only one signature is required. Allow 60 calendar days to receive your copies.

Most needs for tax return information can be met with a computer print-out of your return information called a “transcript”. A transcript may be an acceptable substitute for an exact copy of a return by the United States Citizenship and Immigration Services and lending agencies for student loans and mortgages. A “tax return transcript” will show most line items contained on the return as it was originally filed. If you need a statement of your tax account which shows changes that you or the IRS made after the original return was filed, however, you must request a “tax account transcript”. Both transcripts are generally available for the current and past three years and are provided free of charge. The period in which you will receive the transcript varies from within ten to thirty business days from the time the IRS receives your request for the tax return or tax account transcript.

Please consult us to know more benefits and any other query.

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph:  847.524.0001            
E-mail: MKothari@SKTaxes.com
www.SKTaxes.com

Blog:-http://indiancpa.us/

Share

April 17th – Deadline for 2011 personal taxes

Posted on by

The Internal Revenue Service announced hat taxpayers have until April 17 to file their tax returns. The IRS encourages taxpayers to e-file as it is the best way to ensure accurate tax returns and get faster refunds.

The IRS also announced a number of improvements to help make this tax season easy for taxpayers. This includes new navigation features and helpful information on IRS.gov.

Taxpayers will have until Tuesday, April 17, to file their 2011 tax returns and pay any tax due because April 15 falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls this year on Monday, April 16. According to federal law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have two extra days to file this year. But taxpayers requesting an extension will have until Oct. 15 to file their 2012 tax returns.

And any more information please visit http://indiancpa.us/ and contact us anytime for any query.

Manendra Kothari, CPA
SK Tax Associates, CPAs
127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001
E-mail: MKothari@SKTaxes.com
www.SKTaxes.com
Blog : : http://indiancpa.us/

Share

Tax Tips Regarding Tip Income.

Posted on by

If your pay from work involves compensation through tips, then the IRS would like you to be aware of a few facts about tip income. Here are few key points to keep in mind:

  • Tips are taxable Tips are subject to federal income, Social Security and Medicare taxes. The value of non-cash tips, such as tickets, passes or other items of value, is also considered income and subject to tax.
  • Include tips on your tax return You must include in gross income all cash tips you receive directly from customers, tips added to credit cards, and your share of any tips you receive under a tip-splitting arrangement with fellow employees.
  • Report tips to your employer If you receive $20 or more in tips in any one month, you should report all of your tips to your employer. Your employer is required to withhold federal income, Social Security and Medicare taxes.
  • Keep a running daily log of your tip income. You can use IRS Publication 1244, Employee’s Daily Record of Tips and Report to Employer, to record your tip income.

For more information see IRS Publication 531, Reporting Tip Income, and Contact us.

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph:  847.524.0001            
E-mail: MKothari@SKTaxes.com
www.SKTaxes.com

Blog:-http://indiancpa.us/

 

Share

If you are a Self-employee Must Read This Tax Tips.

Posted on by

If you work for yourself, as an independent contractor, or you carry on a trade or business as a sole proprietor, you are generally considered to be self-employed.

Here are few key points the IRS would like you to know about self-employment and self- employment taxes:

  • Self-employment can include work in addition to your regular full-time business activities, such as part-time work you do at home or in addition to your regular job.
  • If you are self-employed you generally have to pay self-employment tax as well as income tax. Self-employment tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. You figure self-employment tax using a Form 1040 Schedule SE. Also, you can deduct half of your self-employment tax in figuring your adjusted gross income.
  • You file an IRS Schedule C, Profit or Loss from Business, or C-EZ, Net Profit from Business, with your Form 1040.
  • If you are self-employed you may have to make estimated tax payments. This applies even if you also have a full-time or part-time job and your employer withholds taxes from your wages. Estimated tax is the method used to pay tax on income that is not subject to withholding. If you fail to make quarterly payments you may be penalized for underpayment at the end of the tax year.
  • You can deduct the costs of running your business. These costs are known as business expenses. These are costs you do not have to capitalize or include in the cost of goods sold but can deduct in the current year.
  • To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be indispensable to be considered necessary.

For more information see the Self-employment Tax Center Or Contact us.

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001      
E-mail: MKothari@SKTaxes.com
www.SKTaxes.com

Blog:-http://indiancpa.us/

Share

Individual Taxpayer Identification Number (ITIN)

Posted on by

A taxpayer identification number must be furnished on all returns, statements, and other tax-related documents and must be given upon request to any other person who must include it on a return or statement. For most individuals, this is a Social Security Number, or SSN. If you are a foreign person who does not have and is not eligible to get a SSN, you must use an Individual Taxpayer Identification Number, or ITIN.

Examples of Individuals needing an ITIN include:

  • A nonresident alien individual eligible to obtain the benefits of a reduced rate of withholding under an income tax treaty
  • A nonresident alien not eligible for a SSN required to file a U.S. tax return or filing a U.S. tax return only to claim a refund
  • A nonresident alien not eligible for a SSN electing to file a joint tax return with a spouse who is a U.S. citizen or resident alien
  • A U.S. resident alien who files a U.S. tax return but who is not eligible for a SSN
  • An alien individual, claimed as a spouse for an exemption on a U.S. tax return, who is not eligible for a SSN
  • An alien individual, who is not eligible for a SSN, claimed as a dependent on another person’s U.S. tax return, and
  • A nonresident alien student, professor, or researcher filing a U.S. tax return or claiming an exception to the tax return filing requirement who is not eligible for a SSN.

The ITIN is issued for federal tax purposes only. It does not entitle you to Social Security benefits, and does not make you eligible for the earned income credit. The ITIN creates no inference concerning your immigration status or your right to work in the United States.

You must file Form W-7, to apply for an ITIN and show that you have a federal tax purpose for seeking the ITIN. Along with the completed Form W-7, you will submit identity documents, and either a federal tax return, or other documentation to show the federal tax purpose for which you need the ITIN.

You can apply for your ITIN by mail or in person at any IRS Tax Assistance Center in the United States.For more information, refer to Publication 519, U.S. Tax Guide for Aliens. And any more information please visit http://indiancpa.us/ and contact us anytime for any query.

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001       
E-mail: MKothari@SKTaxes.com
www.SKTaxes.com

Blog : : http://indiancpa.us/

 


Share

If You Haven’t Filed Your Tax Return.

Posted on by

You may not have filed your federal income tax return for this year or previous years. Regardless of your reason for not filing, file your tax return as soon as possible. If you need help, we are ready to assist you.click hear http://indiancpa.us

If you are not sure you are required to file a return,Contact us,Your Federal Income Tax. If you cannot pay all of the tax due on your return, the IRS may be able to assist you with arranging payments. For additional information on tax payment options please contact us.

  • If your return was not filed by the due date (including extensions of time to file), you may be subject to the failure to file penalty, unless you have reasonable cause for your failure to file timely. If you did not pay your tax in full by the due date of the return (excluding extensions of time to file), you may also be subject to the failure to pay penalty, unless you have reasonable cause for your failure to pay timely, or the IRS has approved your application for extension of time for payment of the tax due to undue hardship (refer to Form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship. Additionally, interest is charged on taxes not paid by the due date, even if you have an extension of time to file. Interest is also charged on penalties.
  • There is no penalty for failure to file if you are due a refund. But, if you wait to file a return or otherwise claim a refund, you risk losing a refund altogether. An original return claiming a refund would have to be filed within 3 years of its due date for a refund to be allowed in most instances.
  • After the expiration of the three-year window, the refund statute prevents the issuance of a refund check and the application of any credits, including overpayments of estimated or withholding taxes, to other tax years that are underpaid. On the other hand, the statute of limitations for the IRS to assess and collect any outstanding balances does not start until a return has been filed. In other words, there is no statute of limitations for assessing and collecting the tax if no return has been filed.

For answers to your tax questions, information about payment arrangements, or any other tax–related inquiries visit Our Website at www.SKTaxes.com or call-

Mr. Manendra Kothari.
Ph.847.524.0001
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
E-mail: MKothari@SKTaxes.com
www.SKTaxes.com 

Blog : : http://indiancpa.us/


Share

IRS to Host Second Real-Time Tax System Meeting

Posted on by

IR-2012-10, Jan. 18, 2012

WASHINGTON –– The Internal Revenue Service will host the second in a series of public meetings Wednesday, Jan. 25 to gather feedback on how to implement long-term changes to the tax system to reduce burden for taxpayers.

IRS Commissioner Doug Shulman has outlined a vision that would move the agency away from the traditional “look back” model of compliance, and instead perform substantially more “real time,” or upfront matching of tax returns when they are first filed with the IRS.

The goal of this initiative, called the Real-Time Tax System, is to improve the tax filing process by reducing burden for taxpayers and increasing overall compliance. Under such a system, the IRS could match information submitted on a tax return with third-party information at the beginning of return processing and provide the opportunity for taxpayers to fix the tax return if it contains data that does not match IRS records. Currently, the IRS conducts a significant number of compliance activities months after the tax return has been filed and processed.

At this public meeting, IRS officials will solicit feedback and input from outside stakeholders. This second meeting will feature representatives of large and small businesses, financial institutions, software providers and state revenue commissions.

In the meeting on Dec. 8, 2011, IRS officials heard comments from representatives of consumer groups, tax professionals and state and federal government representatives.

For more information please visit http://indiancpa.us/and contact us anytime for any query.

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001   E-mail: MKothari@SKTaxes.com
www.SKTaxes.com 

Blog : : http://indiancpa.us/

 

 

 

Share

Recent Updates: Unreported Foreign Bank Accounts, Assets and Income – FBAR non-compliances & 2011 OVDI

Posted on by

January 9, 2012 - Offshore Voluntary Disclosure Program Reopens With Higher Penalties – No Set Deadline – Read more…

December 12, 2011 – IRS issued fact sheet outlining some more information about how FBAR and other penalties will apply for US citizens or Dual Citizens residing outside US. Read more…

December 5, 2011 – OVDI Status Update – IRS started resolving OVDI cases and sending closing agreements for cases filed by us on or before June 30, 2011. So far, all our cases filed with IRS before June 2011 were closed as prepared without any adjustments. We have not received any communications for OVDI cases filed in July or later. If you have filed an extension, consider it granted unless you hear back from IRS asking to provide additional information.

November 7, 2011 – Credit Suisse AG, Switzerland’s second-largest bank, has begun notifying certain U.S. clients suspected of offshore tax evasion that it intends to turn over their names to the Internal Revenue Service, with the help of Swiss tax authorities. -(Reuters) Read more..

November 4, 2011 - Swiss offer U.S. tax deal for all Swiss banks: sources. Read more...

September 28, 2011 - HSBC India Client (Wisconsin Neurosurgeon) Indicted Again For Not Declaring Over $8.7 Million Account. Read more…

September 9, 2011, The United States is drafting legal documents that seek to force nearly a dozen Swiss banks and international banks with Swiss branches to disclose the identities of American clients evading billions of dollars in taxes.

Read more..

August 26, 2011, 2011 OVDI deadline extended to September 9, 2011, it applies to late information filers mentioned on faq 17 & 18. Taxpayers entering now must file OVDI letter and extension before September 9.
Read more…


August 19, 2011 FAQ 51.2 on IRS site updated to clarify circumstances under which opting out may be a disadvantage for taxpayers. Read more….

August 3, 2011, UBS CLIENT PLEADS GUILTY TO FILING FALSE TAX RETURN. Read more…

August 2, 2011, FORMER UBS BANKER CHARGED WITH HELPING U.S. TAXPAYERS USE SECRET SWISS BANK ACCOUNTS TO EVADE U.S. TAXES Read more…

July 21, 2011, SWISS FINANCIAL ADVISOR INDICTED FOR CONSPIRING WITH MORE THAN 60 U.S. TAXPAYERS TO HIDE MORE THAN $184 MILLION IN SWISS BANK ACCOUNTS… Defendant Also Assisted U.S. Taxpayers in Moving Assets from UBS to Other Swiss Banks to Avoid U.S. Law Enforcement.. Read more…

July 21, 2011, SWISS INTERNATIONAL BANK’S FORMER HEAD OF NORTH AMERICA OFFSHORE BANKING, OTHERS CHARGED WITH CONSPIRACY – Superseding Indictment Alleges Defendants Helped U.S. Taxpayers Hide Assets in Secret Accounts… Read more..

July 18, 2011, FinCEN Offers Optional Electronic Filing for FBAR Forms but can only accept FBAR E-filings when one signature is required. Read more…

June 28, 2011, U.S. Client of HSBC India, Jersey Indicted for $8.7 Million FBAR Fraud…

A Greendale, Wis., man was indicted by a federal grand jury June 28 on four counts of willfully filing materially false tax returns and four counts of failing to file Reports of Foreign Bank and Financial Accounts ( United States v. Ahuja, E.D. Wis., No. 11-cr135, indictment 6/28/11).

June 20, 2011, California UBS clients plead guilty to hiding assets in secret Swiss bank accounts. Taxpayers pleaded guilty for filing a false tax return by failing to report interest in or signatory authority over a secret Swiss Financial Account with UBS. Failed to report income as well. Read more…

June 2, 2011, If you can not make complete submission by August 31, 2011 & demonstrate good faith attempt, you may now request an extension up to 90 days. You must include the properly completed and signed agreements to extend the period of time to assess tax, tax penalties and FBAR penalties. IRS updated answers 32, 35, 51 and 52. New questions 25.1, 51.1, 51.2 and 51.2 inserted. Read more…

May 24, 2011, Another New Jersey UBS Client (Harry Abrahamsen) Sentenced for Failing to Report More Than $1 Million in Swiss Bank Account. Admitted he failed to file FBAR and concealed in a Swiss bank account. Read more…

May 23, 2011, New Jersey UBS Client (Lucille Abrahamsen Jackson) Sentenced for Failing to Report More Than $750,000 in Swiss Bank Account. Admitted She filed a false tax return and concealed in a Swiss bank account. Read more…

May 19, 2011, HSBC client (Michael F. Schiavo, 53) accused of making false quiet disclosure and failing to report offshore accounts to US. Read more…

“A silent disclosure does not constitute a voluntary disclosure,”
Read Criminal Charges (Information) here

April 21, 2011, An 80-year-old New York man who was once a UBS AG client was sentenced to two years probation for filing false U.S. income tax returns and conspiring to hide $4.9 million at the Swiss bank, federal prosecutors said. Read more…


April 13, 2011, New York women pleads guilty to filing a false tax returns and not reporting her HSBC India bank account with $8.3 million in assets. Read more…

April 11, 2011, Vaibhav Dahake, one depositor who was indicted previously, plead guilty to one count of conspiracy. Read More...

April 7, 2011, U.S. Seeks HSBC Customers’ Names as Part of Tax Inquiry. Read more… For memorandum in support of Ex Parte petition for leave to serve “John Doe” Summons - 040711 John Doe Summon on HSBC India.

March 14, 2011, UBS client sentenced in San Diego for Hiding Assets in secret Bahamian and Swiss Bank Accounts. According to court documents and statements made in court, Chatfield filed false tax returns for 2000 through 2008 in which he failed to report that he had an interest in or a signature authority over Bahamian and Swiss financial accounts at UBS and Credit Suisse. He also failed to report income earned on these Swiss bank accounts and never filed any FBARs disclosing his interest in any offshore financial accounts. Read More..

March 08, 2011, Former OHIO man pleads guilty to failing to report his foreign bank account at UBS in Switzerland. Gurary admitted that from approximately 2002 through 2008, he owned and controlled a financial account at UBS AG which was in the name of a Bahamian entity called Demko Ltd. and which contained balances ranging from $490,000 to $947,000. Gurary controlled transactions in the Demko account by sending faxes. According to court documents, Gurary also admitted that for three of the years (2004, 2006 and 2007) he not only failed to report the interest income from his UBS account, but he also falsely stated on his Schedule B attached to his income tax return that he did not have signature or other authority over a foreign financial account. Gurary further admitted that in addition to the account at UBS in Switzerland he also had a foreign financial account with significant assets at Credit Suisse AG. Further, because Gurary did not file any Report of Foreign Bank or Financial Account (FBAR) form or otherwise disclose to the IRS his Demko account at UBS or his Credit Suisse account, he is subject to significant penalties.

March 1, 2011, IRS issued memorandum setting forth a penalty framework to be applied to voluntary disclosure requests containing offshore issues. 030111 Memo

February 23, 2011, Four Swiss Bankers Charged with Helping U.S. Taxpayers Use Secret Accounts at Swiss Banks to Evade U.S. Taxes.

February 8, 2011, IRS opens Second Special Voluntary Disclosure Initiatives for Residents Hiding Assets Offshore – Deadline August 31, 2011. Read more…

November 19, 2010, California UBS Client Indicted for Hiding Assets in Secret Swiss Bank Accounts – indicted by a federal grand jury for conspiracy to defraud the Internal Revenue Service (IRS), filing false tax returns and failing to file Reports of Foreign Bank or Financial Accounts (FBARs). Read More...

 

Indian CPA

 

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001   E-mail: MKothari@SKTaxes.com
www.SKTaxes.com

 

Blog : : http://indiancpa.us/


Circular 230 Disclaimer:
To ensure compliance with the requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any links or attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

Share

Tax Deductible Business Expenses

Posted on by

If you are in business you want to search through your books but make sure that they are in order and figure out, which business expenses is tax deductible.

I always preach through my blogs it is never too late to prepare for tax season. You want to start now to begin to plan your tax return by trying to figure out what you can deduct and claim.

So, if you are a business owner, you know that whatever you receive as compensation for services provided or goods sold is income. So, let us focus on expenses. What kind of expenses can you claim on your return?

TAX RELATED BUSINESS EXPENSES

In general, you can deduct anything that went into running the business – as long as you can prove it. There are a few areas or categories that are a bit ambiguous.

Professional Fees: These include any money paid to attorneys, accountants, CPAs and business consultants. On your schedule C, this is a line item (Legal and Profession Fees)

Car and Truck vs. Travel: This tends to be an ambiguous expense field. If you drive around for your business, any travel expense within your area can be used to calculate Car and Truck expenses. Car and Truck expenses includes: car repair, car insurance, fuel, car maintenance and toll booths. If you travel out of your area of business for business purposes, those expenses are travel expenses. These include flight costs, car rental costs, toll booths, flight internet service, etc.

The importance of distinguishing between Car and Truck expenses and travel is this: for your car, you can elect to deduct the greater of your standard mileage rate or the actual expenses on your car/truck. Let us say you add up all the actual expenses for your car and truck and it comes out to $600. Then you multiply the business miles driven by the standard mileage rate (In 2009, it was 55 cents) and it comes out to $650. You can decide to use the standard mileage rate.

Contract Labor vs. Wages: This is another confusing expense for business owners. Here is the easy way to figure this out. If you remit Federal/State taxes and FICA and Medicare taxes to the government for someone who works for you, that person is an employee who will receive a W-2 a the end of the year. The amount of money you pay the person goes under wages. If you qualify for employment credits like the Work Opportunity Credit, reduce your wage amount by these.

If the person you are paying does not fall under professional fees and you do not remit taxes to the government, then that person is an independent contractor and will receive a form 1099 MISC from you. The amounts paid such individuals goes on the contract labor line in your schedule c.

For more information please visit http://indiancpa.us/ and contact us anytime for any query.

Indian CPA

 

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001   E-mail: MKothari@SKTaxes.com
www.SKTaxes.com

Blog : : http://indiancpa.us/

Share