Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
How Home-Based Businesses Can Avoid Giving Uncle Sam More than His Share > NetSparsh - Viral Content you Love & Share

How Home-Based Businesses Can Avoid Giving Uncle Sam More than His Share

How Home-Based Businesses Can Avoid Giving Uncle Sam More than His Share

By Darren Oliver

With the rush to file your taxes by April 15th, you probably did not consider the possibility that you overpaid. According to the General Accounting Office, in 1998 alone, there was $311 million paid unnecessarily to the IRS. Do not count on the IRS to tell you if you have overpaid because they are not required to but you can file an amended return for up to three years.

Chances are, you either prepare your business taxes yourself or have your tax preparer or CPA does them. There a number of issues surrounding either tax preparation method, which can result in your tax liability being calculated as higher than it actually is including missed deductions, numerous changes in tax laws or being given incorrect advice.

As a home-based business professional, there are a number of deductions you are entitled to which many tax preparers often miss. For example, if you run a home office you are entitled to deduct expenses for the percentage of square footage the home office is occupying. Expenses include the combined total of mortgage interest, property taxes, utilities, repairs, etc. For example, if 250 square feet of a 1,000 square foot house is being used for a home office, you are entitled to deduct a quarter of your total expenses.

Although some deductions may seem minor, over an entire year, they can add up to thousands of dollars that you are unnecessarily paying the IRS. That is money that you could be using to grow your business.

Karen McClafflin, owner of home-based Secret Canyon Realty in Colorado Springs, CO, was able to recover $11,000 when her tax preparer failed to include home office and automobile deductions in her past returns.

Another area, which causes many business owners to overpay, is being given incorrect advice by their CPA, tax preparer or even the IRS directly. In a poll performed by Money Magazine, the average tax preparer, prepares an average of 480 returns between February 1st and April 15th, that is a lot of returns in a relatively short amount of time which makes it difficult for your return to get the time and attention it deserves. This same poll also found there was an average discrepancy of 300% between what the tax preparers said was due and what was actually due. Moreover, in a poll of 50 professional tax preparers, consisting of 10 basic tax questions, none answered all 10 questions correctly and only 34 got at least half correct.

This problem does not extend to just tax preparers or CPA's. In the IRS's 2001 assessment of their own 544 call centers, they found that 50% of the time, their representatives gave incorrect or insufficient advice. Whether you do your taxes yourself and had to call the IRS for clarification on an issue or your CPA did, odds are the answer was not accurate.

The United States tax law is one of the most complex in the world. Not to mention, tax laws change every year and have changed tremendously in the last couple of years. Even the best tax preparer, CPA or even IRS representative can easily make a mistake or, forget to use an exemption which could reduce your tax liability.

If you have not yet filed your taxes, it is a good idea to get a second opinion from an independent source. The extra money and time spent in doing this could save you thousands. Look for someone or a company who:

· Has sufficient years preparing home-based business tax returns

· Prepares less than the average number of returns between January and April so that your return gets sufficient time and attention.

· Have had clients get a second opinion. In addition, talk to those clients to get there first hand insight.

· Is willing to pay for a second review of your tax returns to ensure accuracy.

· Is willing to take MSN's online Tax IQ Test at http://moneycentral.msn.com/invest or/calcs/n_taxq/main.asp. Although designed for consumers, this test contains basic tax information that even junior level tax preparers should know.

Just as you trust a surgeon with your life, you trust this individual or company with your money and confidential information. Be highly selective and do not be afraid to put them through a rigorous qualification. If they are not willing to participate in your qualification then either they do not know their stuff or, your business is not that important to them.

If you already filed your taxes or think you might have missed out on deductions, have been given bad advice or failed to take advantage of a tax law change which could reduce your liability for previous tax years, what can you do? The good news is that by law, the IRS is required, for up to three years, to review your returns and records as many times as needed to find errors. You have the same three years to get a second opinion and file an amended return. In fact, in 2002, 3.3 million taxpayers filed an amended return.

Samuel Rowley, owner of Muffler Masters in Colorado Springs, was able to recover $14,500 through the filing of an amended return when it was found that he overpaid FICA and payroll taxes.

You may worry that an amended return will trigger an audit however; the IRS itself admits this is not the case. In 2002 alone, 3.3 million taxpayers filed an amended return. The IRS is not the big, bad agency we used to know. In fact, statistics show that audits are down and continue to decline.

Businesses throughout the U.S. overpay their taxes to the tune of billions each year and your money could be part of the billions that is overpaid. When it comes to your taxes, always get a second opinion to ensure you are not paying more than you should and, you can even hit pay dirt by looking back.

Darren Oliver is the Chairman and COO of Tax Recovery Systems (TRS) which he founded in 1995. Through their network of sales partners and franchisees, TRS is dedicated to recovering overpaid taxes for home-based and small to medium sized businesses all over the U.S. This commitment has resulted in an average $8,000 recovery for over 60% of qualified reviews. For more information, visit www.trs-esp.com or call (800) 714-3504.

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

CNBC

Tax law limit on deductions looms large in some House races
CNBC
Congressman Leonard Lance voted last December with the interests of his northern New Jersey district in mind when he opposed his own party's sweeping tax overhaul. The cap on deductions for state and local taxes that was part of the Republican plan was ...
Taxes: 10 deductions we lostWWBT NBC12 News

all 346 news articles »

Voice of America

Kenya's Finance Minister Cuts Spending, Money Transfer Taxes to Rise
Voice of America
Kenya's biggest mobile phone operator Safaricom said in June it was opposed to any tax rise on mobile phone-based transfers, arguing that it would mainly hurt the poor, most of whom do not have bank accounts and rely on services such as its M-Pesa ...
Taxes on Money Transfer and Telephone Services to Be IncreasedKenyans.co.ke
What Uhuru's surprise taxes mean to youThe Standard
Uhuru hits consumers with more hidden taxesBusiness Daily (press release) (blog)

all 329 news articles »

Forbes

It's Not Too Soon For Taxes: 4 Moves You Can Make Now
Forbes
With the April 15 tax-filing deadline still months away, it may seem early to consider taxes, but when it comes to reducing your tax bill, starting early makes eminent sense. Too often tax planning is delayed until very late in the year or until we ...


The Mercury News

Walters: How expediency has backfired in California with dam, schools, taxes…
The Mercury News
The state amassed an enormous backlog of deferred maintenance as politicians ignored warnings from transportation officials about decaying conditions, unwilling or unable to gradually increase user taxes and fees to meet the needs of an aging and ...

and more »

Reuters

Luxembourg welcomes EU ruling on McDonald's taxes
Reuters
“This decision strengthens Luxembourg's position that while the application of the rules in force at the time might have resulted in a situation that no longer reflects the current spirit of the national and international tax framework, such an ...
European Union Ends Inquiry Into Luxembourg's Tax Deal With McDonald'sNew York Times
McDonald's Avoids Fines as Europe Rules Its Tax Deal Is LegalWall Street Journal
McDonald's EU Tax Probe Ended As Burger Giant Let Off HookInvestor's Business Daily
Fox Business -Twitter
all 341 news articles »

Felony charges: Valley businessmen failed to pay taxes
Sunbury Daily Item
Two Valley businessmen face multiple felony charges for failing to pay tens of thousands of dollars in state sales and employer taxes and using the money to operate their restaurants. Gary Straub, 54, of Selinsgrove, and his twin brother, Barry Straub, ...


NewsOK.com

Readers asked about the potential that gross production taxes might be increased if Drew Edmondson is elected ...
NewsOK.com
The Oklahoman's energy reporters, Adam Wilmoth and Jack Money, fielded questions during their monthly online energy chat on Tuesday. This is an edited transcript of that conversation. To see the full transcript, go to NewsOK.com. Q. I've heard that the ...


Reason (blog)

Trump's Tariffs Will Cost More Than Obamacare's Taxes
Reason (blog)
Put another way, the potential costs of Trump's trade war could be even more difficult for the president to swallow. The import taxes imposed by the Trump administration will end up being a larger burden for the economy next year than all the taxes ...

and more »

Business Insider

Your state's taxes could determine whether your NFL team makes it to playoffs
Business Insider
Taxes could be hurting your favorite NFL team's chances of reaching the playoffs. Unlike other pro sports, the NFL operates with a strict salary cap — its 32 teams must spend the same amount each season on player salaries, meaning professional ...

and more »

The Boston Globe

Jay Gonzalez's revenue plan would tax state's major colleges and universities
The Boston Globe
For weeks, Democratic gubernatorial nominee Jay Gonzalez has faced criticism from Republicans for not detailing how he will pay for his expansive education and transportation plans. Now comes his proposal: Tax Harvard and the state's other richest ...

and more »
Google News

Need a Copy of Your Tax Return Information?

Taxpayers have two easy and convenient options for getting copies... Read More

Surprising Truths About Tax Preparers

Choosing the right tax preparer for your business is a... Read More

What to Do If You Can?t Pay Your Taxes

The end of tax filing extensions is quickly approaching. What... Read More

Small Business Tax Deductions for Year End 2004

As a small business owner, it's wise to familiarize yourself... Read More

Euro Tax Haven Threat

Media reporting of a new EU savings tax directive has... Read More

Small Business Tax Deduction - Write-Off Bad Debts

Practically every small business has receivables that it cannot obtain... Read More

Tax Deduction for Alimony Payments? - Yes!

Over 50% of marriages end in divorce in the United... Read More

IRS Statute of Limitations: Do Taxes Ever Expire?

Many Americans believe that an IRS debt is a debt... Read More

10 Tax Tips to Reduce Costs and Increase Income

No one likes paying tax. Everyone understands that tax is... Read More

Fraudulent Tax Shelters ? KMPG Goes Down Hard

In the largest criminal tax case ever filed, KMPG has... Read More

Employment Taxes ? Depositing With The IRS

If your business has employees, you must pay employment taxes.... Read More

Business Tax Loophole: Leasing Assets To Your Corporation

While there are many equally valid reasons to incorporate, saving... Read More

How Home-Based Businesses Can Avoid Giving Uncle Sam More than His Share

How Home-Based Businesses Can Avoid Giving Uncle Sam... Read More

Organizing Your Taxes

Does this scene sound familiar? It's April 7. You haven't... Read More

10 Thoughts on Tax Offer in Compromise

Beware of advertisements that claim to settle tax debts for... Read More

State Tax Information

All states also have their own tax system. Typically there... Read More

Tax Tips to Save Money on Taxes - Get the Corporate Kick and Save Loads of Money

Why a Corporation Helps Save You TaxesThe Tax Rates (Notice... Read More

How To Claim CHILD TAX CREDIT The Right Way And Add An Extra $2,000 To Your Refund

The U.S. Department of Agriculture estimates that it costs nearly... Read More

Are You An Innocent Victim of These Popular Myths?

Misconceptions, misinterpretations and just plain "untruths" are floating about income... Read More

Early Distributions From Retirement Plans

An early distribution from an Individual Retirement Arrangement (IRA) or... Read More

Tax Time Tune Up

Excerpted from the new book, "How to Do Space Age... Read More

Save Money on Taxes - Double Your Income Now With Tax Saving Tips on Deductions

Adding Your First Additional Stream of IncomeMost new wealth builders... Read More

Know A Tax Cheat? Get Paid To Tell The IRS

According to the IRS, taxpayers underpay their taxes by some... Read More

Render Unto Caesar

Once a year Canadian taxpayers are required, by law, to... Read More

Tax Help Secret: Avoiding the Entreprenuers Curse

Your days as an entrepreneur and businessperson are consumed with... Read More