WHILE THE TAX SEASON FOR MOST PEOPLE STARTS IN JANUARY 2011, PLEAE NOTE THAT IRS NEEDS TIME TO REPROGRAM TEIR COMPUTERS FOR THE CHANGES IN THE NEWLY SIGNED TAX LAW IN DEC 2010. THESE CHANGES AFFECT THE INDIVIDUAL TAX PAYERS WITH FOLLOWING DEDUCTIONS:
1. STATE & LOCAL TAX DEDUCTIONS
2. TUTION & FEES DEDUCTIONS
3. EDUCATOR EXPENSES DEDUCTION
4. 1040 FORM SCHEDULE A FILERS.
THE IRS COMPUTERS SHOULD BE READY BY MID TO LATE FEBRUARY 2011.
FOLLOW ME FOR TAX INFO --> CALL KASH YAJNIK , AT (925) 963 4891 OR VISIT http://www.yajnikandmehta.com/ OR BLOG: http://yma-tax-bookkeeping-payroll.blogspot.com/ OR
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Wednesday, December 29, 2010
Thursday, December 23, 2010
NEW TAX LAW CHANGE - SOCIAL SECURITY WITHOLDING
1. IRS IS GOING TO INFORM EMPLOYERS TO CUT THE SOCIAL SECURITY WITHHOLDING BY 2% AND THERE BY THE SOCIAL SECURITY TAX FOR ALL THE EMPLOYEES. THE INTENT IS THAT 2% TAX REDUCTION WILL BOOST THE ECONOMY IN 2011.
2. THIS CHANGE WILL BE IN EFFECT LATEST BY JAN 31, 2011.
3. EMPLOYERS WILL HAVE TO UPDATE THEIR PAY ROLL SYSTEMS TO MAKE THIS CHANGE AND SO JANUARY 31 2011 IS TARGETED FOR CHANGE TO BE IN EFFECT.
FOLLOW ME FOR TAX INFO --> CALL KASH YAJNIK , AT (925) 963 4891 OR VISIT http://www.yajnikandmehta.com/ OR BLOG: http://yma-tax-bookkeeping-payroll.blogspot.com/ OR
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2. THIS CHANGE WILL BE IN EFFECT LATEST BY JAN 31, 2011.
3. EMPLOYERS WILL HAVE TO UPDATE THEIR PAY ROLL SYSTEMS TO MAKE THIS CHANGE AND SO JANUARY 31 2011 IS TARGETED FOR CHANGE TO BE IN EFFECT.
FOLLOW ME FOR TAX INFO --> CALL KASH YAJNIK , AT (925) 963 4891 OR VISIT http://www.yajnikandmehta.com/ OR BLOG: http://yma-tax-bookkeeping-payroll.blogspot.com/ OR
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Saturday, December 18, 2010
HOW LONG SHOULD I KEEP TAX RECORDS ?
DEPENDS UPON THE TAX DATA RECORDED. SOME SUGGESTIONS ARE LISTED BELOW:
1. DOCUMENTS THAT SUPPORT TAX DEDUCTIONS & PAYMENTS SHOULD BE KEPT UNTIL THE STATUE OF LIMITATIONS FOR THAT TAX YEAR RUNS OUT. FOR EXAMPLE KEEP TAX YEAR 2006 DATA UNTIL 2009 i.e. 3 YEARS.
2. FOR RECORDS OF ASSETS, KEEP RECORDS AFTER DISPOSAL UNTIL THE TAX YEAR THE STATUTE OF LIMITATION EXPIRES i.e. IF A CAR IS DISPOSED OFF IN TAX YEAR 2008, KEEP ITS RECORDS UNTIL TAX YEAR 2011.
3. IF YOU FILE A CLAIM FOR WORTHLESS SECURITIES, KEEP RECORDS FOR 7 YEARS.
4. KEEP EMPLOYMENT RECORDS FOR 4 YEARS AFTER TAX IS DUE OR PAYABLE, WHICH EVER IS LATER.
5. FOR UNREPORTED INCOME OVER 25% OF YOUR GROSS INCOME, KEEP RECORDS FOR SIX YEARS.
6. FOR FRAUDULENT OR NOT FILED RETURNS, KEEP RECORDS INDEFINITELY.
FOLLOW ME FOR TAX INFO --> CALL KASH YAJNIK , AT (925) 963 4891 OR VISIT http://www.yajnikandmehta.com/ OR BLOG: http://yma-tax-bookkeeping-payroll.blogspot.com/ OR
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1. DOCUMENTS THAT SUPPORT TAX DEDUCTIONS & PAYMENTS SHOULD BE KEPT UNTIL THE STATUE OF LIMITATIONS FOR THAT TAX YEAR RUNS OUT. FOR EXAMPLE KEEP TAX YEAR 2006 DATA UNTIL 2009 i.e. 3 YEARS.
2. FOR RECORDS OF ASSETS, KEEP RECORDS AFTER DISPOSAL UNTIL THE TAX YEAR THE STATUTE OF LIMITATION EXPIRES i.e. IF A CAR IS DISPOSED OFF IN TAX YEAR 2008, KEEP ITS RECORDS UNTIL TAX YEAR 2011.
3. IF YOU FILE A CLAIM FOR WORTHLESS SECURITIES, KEEP RECORDS FOR 7 YEARS.
4. KEEP EMPLOYMENT RECORDS FOR 4 YEARS AFTER TAX IS DUE OR PAYABLE, WHICH EVER IS LATER.
5. FOR UNREPORTED INCOME OVER 25% OF YOUR GROSS INCOME, KEEP RECORDS FOR SIX YEARS.
6. FOR FRAUDULENT OR NOT FILED RETURNS, KEEP RECORDS INDEFINITELY.
FOLLOW ME FOR TAX INFO --> CALL KASH YAJNIK , AT (925) 963 4891 OR VISIT http://www.yajnikandmehta.com/ OR BLOG: http://yma-tax-bookkeeping-payroll.blogspot.com/ OR
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Saturday, December 11, 2010
2010 YEAR END TAX PLANNING
IRS EXPECTS PAYMENT OF OF 90% OF THE TAXES OWED AS THE INCOME IS EARNED THROUGH OUT THE YEAR IN OUR PAY AS YOU GO TAX SYSTEM. REVIEW TAX PAYMENTS FOR YOUR BUSINESS OR PERSONAL TAX RETURNS AND LOOK FOR THE FOLLOWING:
1. IS SUFFICIENT FEDERAL & CA TAX WITHHELD ? IF NOT, THEN COMPUTE THE NUMBER OF ALLOWANCES USING THE W4 FEDERAL WITHOLDING AND "DE4" CA ALLOWANCE FORMS. INFORM THE PAYROLL ABOUT THE REDUCED NUMBER OF ALLOWANCES.
2. IF YOU OWN A BUSINESS, IS SUFFICIENT ESTIMATED FD & CA TAX PAYMENT MADE TO ACCOUNT FOR BUSINESS GROWTH? IF NOT, SEND IN HIGHER Q4 TAX PAYMENT BEFORE JANUARY 15, 2011.
FOLLOW ME FOR TAX INFO --> CALL KASH YAJNIK , AT (925) 963 4891 OR VISIT http://www.yajnikandmehta.com/ OR BLOG: http://yma-tax-bookkeeping-payroll.blogspot.com/ OR
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1. IS SUFFICIENT FEDERAL & CA TAX WITHHELD ? IF NOT, THEN COMPUTE THE NUMBER OF ALLOWANCES USING THE W4 FEDERAL WITHOLDING AND "DE4" CA ALLOWANCE FORMS. INFORM THE PAYROLL ABOUT THE REDUCED NUMBER OF ALLOWANCES.
2. IF YOU OWN A BUSINESS, IS SUFFICIENT ESTIMATED FD & CA TAX PAYMENT MADE TO ACCOUNT FOR BUSINESS GROWTH? IF NOT, SEND IN HIGHER Q4 TAX PAYMENT BEFORE JANUARY 15, 2011.
FOLLOW ME FOR TAX INFO --> CALL KASH YAJNIK , AT (925) 963 4891 OR VISIT http://www.yajnikandmehta.com/ OR BLOG: http://yma-tax-bookkeeping-payroll.blogspot.com/ OR
Join Linkedin "Tax Matters" Group for discussion.
Friday, December 3, 2010
IRS - TAX PRO " ETHICAL STANDARDS "
IRS REVISES AND UPDATES CIRCULAR 230 STANDARDS TO PROMOTE ETHICAL PRACTICE BY TAX PROFESSIONALS.
COMPREHENSIVE DOCUMENT IRS CIRCULAR 232 HAS FIVE SUB PARTS. HIGHLIGHTS ARE:
o SUB PART A : RULES GOVERNING PRACTICE BEFORE IRS AND WHO IS ENTITLED TO PRACTICE IN IRS COURTS.
o SUB PART B: RULES ABOUT DILIGENCE, FEE SOLICITATION RESTRICTIONS, CONFLICT OF INTEREST, STANDARDS FOR ADVISING WITH RESPECT TO TAX RETURN POSITIONS.
o SUB PART C: SANCTIONS FOR VIOLATIONS OF CIRCULAR 230.
o SUB PART D: DISCIPLINARY ACTIONS AND PROCEEDINGS FOR CIRCULAR 230 VIOLATIONS
o SUB PART E: MISCELLANEOUS PROCEDURES & RULES.
FOLLOW ME FOR TAX INFO --> CALL KASH YAJNIK , AT (925) 963 4891 OR VISIT http://www.yajnikandmehta.com/ OR BLOG: http://yma-tax-bookkeeping-payroll.blogspot.com/ OR
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COMPREHENSIVE DOCUMENT IRS CIRCULAR 232 HAS FIVE SUB PARTS. HIGHLIGHTS ARE:
o SUB PART A : RULES GOVERNING PRACTICE BEFORE IRS AND WHO IS ENTITLED TO PRACTICE IN IRS COURTS.
o SUB PART B: RULES ABOUT DILIGENCE, FEE SOLICITATION RESTRICTIONS, CONFLICT OF INTEREST, STANDARDS FOR ADVISING WITH RESPECT TO TAX RETURN POSITIONS.
o SUB PART C: SANCTIONS FOR VIOLATIONS OF CIRCULAR 230.
o SUB PART D: DISCIPLINARY ACTIONS AND PROCEEDINGS FOR CIRCULAR 230 VIOLATIONS
o SUB PART E: MISCELLANEOUS PROCEDURES & RULES.
FOLLOW ME FOR TAX INFO --> CALL KASH YAJNIK , AT (925) 963 4891 OR VISIT http://www.yajnikandmehta.com/ OR BLOG: http://yma-tax-bookkeeping-payroll.blogspot.com/ OR
Join Linkedin "Tax Matters" Group for discussion.
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