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
Are You Overpaying Taxes If You Use Tax Preparation Software? > NetSparsh - Viral Content you Love & Share

Are You Overpaying Taxes If You Use Tax Preparation Software?

For many business owners the answer to this quandary is tax preparation software. Fill out a fairly simple interview, click "print" and out comes a completed return that will pass muster with the IRS. The answer to all your problems?or is it?

Can One Software Program Cover All Businesses?

Take a moment to consider the wide range of businesses that exist in the United States. Now cut that number down to those that can be categorized as "Internet businesses". If you were asked to write a business plan to provide web design services to each of these services, how long would it be? It would be huge and completely useless because each business would have different needs. A Internet business selling flowers would have completely different needs from an online bank which would have different needs from a hosting company and so on. The only way you could create a practical plan for all Internet businesses would be to offer a collection of general services they could all use on their sites. Tax preparation software designers have the same problem.

There are over 15,000 pages in the tax code and over 100,000 pages of regulations interpreting those pages. Changes are made to the tax code ever year, and new regulations are issued constantly. If one were to create a list of questions for every tax deduction and credit detailed in those pages, the list of questions would be the size of a phone book! Yet, tax software programmers have somehow boiled it all down to a simple 30-minute interview process? Common sense should tell you that doesn't make sense.

As practical matter, tax software programs are designed to make sure that you claim a general set of deductions that are applicable to businesses across all industries. Most programs try to mask this fact by asking you to identify your business before proceeding. For a lark, you might try selecting another industry and then running through the interview process. You will find that the interview process is modified a bit, but you are still being asked the same basic tax deduction questions.

If you are only claiming general business tax deductions, you are paying more than you should in taxes. Ask yourself if you have seen any of the following questions in a tax software program interview:

Q. Do you store business inventory in your house?

Hint: You may be able to claim hundreds or thousands of dollars in deductions.

Q. Did you start a pension plan for your employees?

Hint: You may be able to claim a tax credit for the next three years totaling $1,500.

Q. Do you have a home-based business and a second office?

Hint: You may be able to deduct your commuting expenses each day. Yes, commuting expenses.

Q. Do you have business meetings at your home?

Hint: Did you charge your business for the space?

Q. Should you claim the standard mileage rate for your auto or the actual costs?

Hint: The standard mileage rate may not the best option.

Q. Did you modify your business location to comply with the Americans with Disabilities Act?

Hint: You may be able to claim a tax credit AND tax deduction for tax savings of $20,000 or more.

Q. Did you refinance your home?

Hint: The points you paid on your original mortgage are fully deductible now, not over the length of the loan.

This represents only the tip of the iceberg of available credits and deductions available to you. Just one of these deductions could save you thousands of dollars in taxes. Yet, you are never going to see these questions raised in a tax software program interview. The tax code and regulations are simply too large to be incorporated into a usable software program.

Your business is unique. You face and overcome issues and problems that are unique to your size, financial situation and particular business needs. Don't short change yourself by limiting your deductions by using tax software programs.

Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.

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

Motley Fool

Taxes: 10 deductions we lost
WTOL
Come January, we'll all be trying to figure out the changes to the way we file our taxes because of the Tax Cuts and Jobs Act of 2017. So, with the help of a Richmond area financial adviser, we take a look at some of the biggest deductions we are ...
Here's How Much Losing 1 Big Tax Deduction Could Cost You ...Motley Fool
Here's How Much Losing 1 Big Tax Deduction Could Cost YouFox Business
Tax Reform Is Done: Here's How It Matters to YouMotley Fool
Motley Fool -Motley Fool
all 19 news articles »

MarketWatch

Opinion: You can minimize the tax hit when you die — with a little planning
MarketWatch
There can be a lot of taxes upon one's passing, or very little, depending on the circumstances. Q.: My brother, my mother and I are trying to figure the best way for her to leave what she has in cash for us without it being taxed too heavily. We are ...

and more »

Sioux Falls tourism group faces $220K loss amid tax mix-up
News & Observer
The organization uses taxes collected on hotel stays to lure conventions, trade shows and tourists to the city through advertisements and marketing campaigns. The lodging taxes are sent to the state revenue office, which then funnels the money back to ...

and more »

The Patriot Ledger

Fall River Wonders: What are excise taxes all about?
The Patriot Ledger
FALL RIVER – Herald News reader Ronald Bernardo asks, “We pay excise taxes on our cars every year and I've always wondered where does the term excise come from?” The term “excise,” according to Merriam-Webster, means “a tax levied on certain ...

and more »

Minneapolis Star Tribune

Jeff Johnson promises tax cuts, but that means spending cuts, too
Minneapolis Star Tribune
Jeff Johnson is offering Minnesotans an ambitious plan to cut taxes and restrain spending, aiming to put the state on a starkly different path after eight years of a Democratic governor. “Our taxes are too high in Minnesota. We're in the top 10 of many ...


Tampa Bay Times

Andrew Gillum pays extra taxes on his Tallahassee home, records show
Tampa Bay Times
During his bid for governor, Democrat Andrew Gillum has reminded voters constantly that he isn't a millionaire like some of the other candidates who sought the office. But a review of property and tax records shows that Gillum is paying extra taxes ...
GUEST EDITORIAL: The downside to Florida's low taxesThe Northwest Florida Daily News
Florida Candidate for Governor Paying Extra Taxes on HomeU.S. News & World Report

all 74 news articles »

Forbes

Limits On Future Tax Hikes To Appear On Fall Ballot In Numerous States
Forbes
RALEIGH, N.C. — As voters head to the polls in this fall's midterm elections, they'll have the opportunity to approve ballot measures that would limit or thwart future efforts to raise taxes in states from coast to coast, including North Carolina ...

and more »

Times of San Diego

Opinion: California's Regulations and Taxes Can Stifle Family Businesses
Times of San Diego
Especially important for family businesses, the law also doubled the amount exempt from estate taxes. The 40 percent death tax is a major impediment to keeping businesses from one generation to the next, especially cash-poor and land-rich family farms.


The Daily Progress

OPINION: A lesson on taxes and economic development
The Daily Progress
In April the Augusta County Board of Supervisors (BOS) offered a “work session budget.” It included the South River Supervisor's pet Capital Improvement Project entitled “Lyndhurst Sewer Project.” It was listed under “Economic Development” at a cost of ...


ABC News

Spat over taxes splits leading candidate, adviser in Brazil
ABC News
The key economic adviser to Brazil's leading presidential candidate cancelled two campaign events on Friday amid a disagreement with his boss. Market-friendly Paulo Guedes, the main adviser of far-right candidate Jair Bolsonaro, canceled events at the ...

and more »
Google News

IRS Certifies 2006 Toyota Hybrid for Clean Fuel Deduction

The Internal Revenue Service has certified the 2006 Toyota Highlander... Read More

Knock-Knock-Knock

Knock-Knock-KnockWho's there?The IRS!The next quarterly payment of estimated income tax... Read More

Getting A Second Extension to File 2004 Taxes

Millions of people file tax return extensions every year. The... 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

Organizing Your Taxes

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

Furnishing Evidence in E-Tax Compliance

Self-assessment relies on taxpayers voluntarily meeting their tax obligations. This... Read More

Tax Trap #5 -- Ignoring The IRS (and the 5 best ways to contact them!)

We all love to criticize the IRS, don't we? And... Read More

Small Business Tax Deduction - Write-Off Bad Debts

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

What Is Tax Law?

The federal tax code is complex. This complexity generally arises... Read More

Tax Audits: What Signs Make You More Likely to be Audited by the IRS?

It's a major fear for most Americans: A notice from... Read More

History Of The Federal Income Tax

The powers of Congress, and the limitations set upon those... Read More

Home Based Business Tax Deductions

Running a home based business reaps many wonderful tax deductions... Read More

How to Cut Duty Cost and Increase Profit as an Importer

Import duties continue to be significant elements in the cost... Read More

Electronic Commerce Taxation and Pakistan

Assume a buyer in Pakistan downloads software from the Internet... Read More

Requirements To Produce Tax Information (Whats Up With That?)

"What we've got here is a failure to communicate." ... Read More

Surprising Truths About Tax Preparers

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

The Internet Tax Man Cometh

Q: I was contacted by the city tax collector to... Read More

Small Businesses Filing Amended Federal Tax Returns to Recover Money

Small Businesses Filing Amended Federal Tax Returns to... Read More

Euro Tax Haven Threat

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

SFR Substitute for Returns: IRS Action on Non-Filers

In the latest Star Wars episode, the evil empire executes... Read More

Employment Taxes ? What Are They?

If you have employees, you are responsible for paying a... Read More

Home Business Tax Tips

If you have recently started an Internet or home business,... Read More

How to Donate Your Car to Charity and Get Tax Deduction

Donating your used car to charity is a win-win situation;... Read More

Save Money on Taxes - Is the Only Way to Get Your Tax Savings is to Sleep With an IRS Agent?

Tilting the Tax Laws in Your Favor.In order to accelerate... Read More

Alas! In E-Commerce Taxland

In trying to comply with tax laws for your e-business,... Read More