Tax Tips for Businesses
Organizational and Start-Up Costs
Have you just started a new business? Did you know expenses incurred before business operations are not allowed as current deductions?
Business or Hobby?
It is generally accepted that people prefer to make a living doing something they like. A hobby is an activity for which you do not expect to make a profit. If you do not carry on your business or investment activity to make a profit, there is a limit on the deductions you can take.
Deductible Home Offices
If you are self-employed and you use a portion of your home exclusively and regularly for business purposes, you may be able to take a home office deduction.
Filing Deadline and Payment Options
If you’re trying to beat the tax deadline, there are several options for last-minute help. You can download copies from the IRS website if you need a form or publication. If you need more time to finish your return, you can get a six-month extension to file using Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns. The IRS has several payment options if you have trouble paying your tax bill.
Refund, Where’s My Refund?
Are you expecting a tax refund from the Internal Revenue Service this year? If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from when the IRS receives your return. If you file your return electronically, your refund should be issued in about half the time it would take to file a paper return, even faster when you choose direct deposit.
Your Appeal Rights
Are you in the middle of a disagreement with the IRS? One of the guaranteed rights for all taxpayers is the right to appeal. If you disagree with the IRS about the amount of your tax liability or proposed collection actions, you can ask the IRS Appeals Office to review your case.
Information About IRS Notices
It’s a moment any taxpayer dreads. An envelope arrives from the IRS, and it’s not a refund check. But don’t panic. Many IRS letters can be dealt with simply and painlessly.
Charitable Contributions
When preparing to file your federal tax return, don’t forget your contributions to charitable organizations. Your donations (up to 10% of taxable income) can add up to a nice tax deduction for your corporation.
