Mike's weekly post usually concentrated on tax saving strategies.
I'm often asked if filing an extension will eliminate penalties charged by the IRS... and how much are the penalties.
If you have a balance due on a late tax return, the IRS will calculate additional penalties and interest. There are three separate penalties:* Failure to File Penalty - a "Valid" extension will relieve this during the extension period
* Failure to Pay Penalty
* Interest
Each is calculated differently. Here is a quick overview.
As of April 1, 2009, the new sales tax rates are effective. Please be sure that you have updated your proceedures to collect the appropropriate amounts. As the retailer, you are responsible for the collection of the proper tax.
Click here to open a PDF of the New Rates!Click here to jump to the CA State Board of Equalization for more information.
We want to reassure you that we hold all your tax and financial information in the strictest confidence.
Federal law requires us to obtain your consent before we use or disclose your tax return information for purposes other than preparing your return. We are well aware of the rules and restrictions involving the use and/or disclosure of your return information, and we take our obligations extremely seriously. I trust that this will bring you up to date on the rules that we must follow when handling your tax return information.
Tax planning for year-end 2008 presents unique opportunities and challenges for small business taxpayers to reduce or defer federal income tax liability. While traditional planning techniques remain fundamentally important considerations this year, new opportunities and pitfalls born from recent legislation and changes in the tax laws in response to our current financial crisis provide planning variables unique to this year end. This letter discusses important year-end tax planning strategies -- from the tried and true techniques to new considerations for our economic situation -- that can operate to reduce the tax burden for your small business.
The end of 2008 is happening upon us faster than we think. With the year drawing to a close, now is an ideal time to review your tax situation and evaluate strategies that may help minimize your tax bill. Once December 31 passes, your 2008 tax bill is essentially set. Taking certain steps before then, however, can make a difference.
As is the case year after year, favorable changes to the tax laws made in 2008 are also accompanied by unfavorable modifications. This year end, of course, our unprecedented financial crisis looms large. This crisis generates tax loss situations that we may not have faced in recent years, as well as a more urgent need to maximize current income that involves taking steps to minimize tax payments whenever possible.
