H&R Block is one of the best tax preparation software used worldwide. Today more than 500 million clients mainly in Australia, the U.S., and Canada use H&R block. With almost 50 years of small business experience H&R Block system understands the requirements of their clients and creates, sustains and implements such systems to support the franchisee in their business growth.
Not only experience, but the H&R block tax preparation services has very strong recognition, making itself a house hold name all over the world. H&R Block is one of the leading and top selling products in tax preparation and continues to use it every year; that has built its own reputation on popularity, reliability and simplicity. Millions of people today use H&R Block to prepare their State and Federal income tax returns each year as they trust the professionals. Various features include Tax Tips, along with a knowledge center that offers useful information on how to increase your refund. FREE Tax Calculators and Tax Estimator for various purposes help in computing your tax figures easily. Online help from the H&R Block professionals is at your fingertips at any point of time, and uncomplicated forms with step by step assistance ease you through the tax return process.
Everybody is interested in avoiding taxation legally because no one likes to pay taxes. There is generally no tax liability in case of annuities and this is what makes it so popular. After all, ‘a penny saved is a penny earned’ therefore why not invest in these since they do not require you to pay tax? The tax-deferred growth that one can enjoy from an annuity is probably one of the most attractive features about it. The government isn’t going to tax you on any of the earnings as long as the money stays inside the annuity. Thus, if you were filing for 2009 taxes then your annuity wouldn’t come under it.
However, it cannot remain like this forever since all good things should come to an end. Therefore your deferred annuity will get taxed in its later stages. To understand this, it is necessary to take a look at the two stages of a deferred annuity. The accumulation phase is the first phase and during this phase the annuity is allowed to grow and there is no tax liability on it.
In the second phase, i.e. the distribution phase, the annuity is paid out and the payment can be made in a single lump sum or it can be segregated into a series of payouts at fixed intervals over a lifetime or a pre-determined period of time. It does not matter which mode of payment is opted because the income tax will be due on each of the annuity payment which the recipient receives.
The end of the United States tax year has been and gone, so it is surprising to some that there are still a large number of celebrities who are believed to still owe the Internal Revenue Service (IRS) a great deal of money. But are the IRS oblivious to this? Are the celebrities in the US entirely under the radar?
Because there is a considerable amount of money still owed at such a late date by celebrities, it may seem easy to jump to the conclusion that the answer is most definitely ‘yes’. However there have been many highly publicized cases of celebrities being singled out for owing large sums of money, usually due to them not taking enough responsibility for their own tax preparation. One such example is former NFL athlete Warren Sapp, who in April of this year filed for bankruptcy due to his past failure to pay tax catching up with him. The bankruptcy documents indicate that Sapp owes $942,000 in taxes to the IRS which date back to 2006, which he is now unable to pay. Cases like this indicate that celebrities are not free to evade the tax they owe to the IRS. However it is extremely hard for celebrities such as Sapp to pay back money that they owe when they do not have any money to give – usually because they are past their heyday and no longer have a steady income.
The IRS have made it extremely clear that celebrities are far from under the radar. Back in 2007 an Issue Management Team was formed with the specific goal of retrieving unpaid income tax returns from athletes and entertainers within the United States. This has coincided with the laws regarding tax and the IRS becoming stricter and stricter. A bill currently going through the US House of Representatives will allow the federal government to revoke passports of US citizens who the IRS can prove owe them taxes. Also actions have been taken against celebrities who still have unpaid tax returns. Wesley Snipes, a well known movie star who is believed to owe the IRS a staggering $17 million in back taxes, and Rapper Ja Rule are both serving prison sentences due to unpaid taxes.
Unpaid tax returns are of high public concern due to the importance of tax money to the US treasury. Taxes provide income to all levels of government in order for them to be able to provide vital services. Examples of the services they provide are things such as highways, police and hospitals, which benefit all citizens in the US. Without this income, such public services suffer greatly. The problem with celebrities not paying tax is that there is a public perception that they have a great deal of disposable income, so by not paying tax they are portrayed in the media as immensely greedy.
However there are other reasons that celebrities may not pay their income tax, which all need to be considered. One issue is that celebrities tend to have a hard time keeping on top of their finances. This is because unlike the average American citizen who gets paid either weekly or monthly, celebrities tend to get paid in lump sums and often to have to manage this income throughout the year. Because of this issue celebrities often hire financial advisers, but if non-reputable firms or individuals are hired, the trust may not pay off and their finances may become increasingly complex. Actors Nicolas Cage and Wesley Snipes both laid the blame for their financial troubles upon the financial experts they hired.
Another issues is that unlike the average American employee, taxes are not automatically deducted from their wages. This means that the payment of income tax may be delayed, which is when the problems begin to arise. Many years of unpaid tax eventually add up to an incredibly large bill, which the celebrity may not be able to ever repay. To solve this problem, many have suggested that the IRS should put more pressure on celebrities to ensure that they file their income tax returns at the end of each tax year. Another issue of note is to ensure that celebrities hire reputable firms to deal with their finances and any ensuing legal issues, instead of relying on people who they know without the relevant expertise.
Celebrities are far from under the radar of the IRS, but certain situations such as bankruptcy resulting from delayed payment may give this impression. Celebrities status often makes it impossible to avoid issues to do with tax due to the constant media attention which they receive. Before jumping to a hasty conclusion about celebrity greed and their tax evasion, the differences between public and celebrity taxes have to be considered and understood.
With every new company, it is important to have an accounting system that works well and is prepared to grow with the business. Office work may be the least favorite part of getting a start-up off the ground, after all, you are a visionary with a great business idea, and taxes and sales reports aren’t exactly exciting. The future of any new business depends on careful planning. Not being prepared with the tax and bookkeeping management can turn even the greatest business plan into a failure.
The type of accounting software you choose really depends on the type of business. For many small companies, QuickBooks is the first choice, mostly because it has been around long enough to improve itself over the years. If your business is more global, a cloud-based program such as Salesforce.com may be more your speed. This application is useful for customer relationship management. It combines record keeping with customer interactions, which can help a new company grow. Freshbooks is another program that provides streamlined billing and organization tools you can manage online.
A new business should keep track of all receipts and all expenses from the beginning. It is crucial to know how much money is going in and out of the accounts. Taxes aren’t something you think about once a year, as your business grows, new requirements come with it, such as quarterly filings with the state or federal governments. Many Balancing books and keeping track of the latest tax laws could very well be the reason why one business outperforms a competitor. Keeping the books balanced means you have fewer problems to fix, and let an owner spend time making the business a success.
Hire an Expert
The best way to make a company more productive is finding the right people to do the job. If you have an employee who is a natural with numbers and bookkeeping, let that be their specialty. If your establishment has more of the innovative and imaginative types, let them shine where they belong and hire an outside firm to do the books. Many accountants make a living helping small firms with their tax and record keeping tasks.
Getting a new business off the ground can be difficult, but the mistake many of them make is not continuing with their planning. Very few successful companies still use the same bookkeeping system they started with. Maybe a laptop and a simple software program was all you needed to get started, but after a while, your needs will change as the business does. Thinking about an expandable accounting system from the start will ensure that you have a start-up that takes off and stays profitable for the long haul.
Aristides Trimindis is the Managing Director of Istos Global Limited an independent Firm offering Cyprus Accounting, Audit, Cyprus Tax services and Advisory services. In addition to the above Istos Global can help you Register a Company in Cyprus.
With $1.3 trillion deficit decline in State’s Revenue, and 43 States faced with budget deficit, these proves that the United States of America is not left out in this hard economic time. As a solution to the situation, 2012 taxes, tax cuts was enacted. Unfortunately, it was tricky hence; the US resorted to slashing programs and lowering costs. Worse still, it led to increase of some taxes but still a total of eight-tax cut set forth.
2012 taxes, tax cuts stands out as a major challenge. Brooking reports show that 40 States raised taxes and consequently spending declined. Previously, taxes increased by nearly $24, translating to a cool 3.5% increase. 2012 taxes, tax cuts therefore look slightly effective in the struggle to shrink the State’s deficits. Large States like New York and California, recorded a bulk of tax increase.
Among the six States that raised taxes the most, five of them slashed services in various sectors namely public health, higher education, State workforce, early education and K-12 and the elderly or disabled. This is a clear indication that 2012 taxes, tax cuts is close to impossible or else the country suffers a decline. Two states also slashed their services in four of these sectors while the other two scrapped off funding for all the five sectors.
Interestingly though, the States with the highest tax raise still had some of the most generous programs for the residents instead 2012 taxes, tax cuts.
In the 2008 fiscal year, out of the six States, four of them spent over $4,600. This exceeded the national average of $4,114 per individual.
Hopefully you aren’t procrastinating so much that it makes a difference, but its important to note that the due date for filing your 2011 United States federal income tax return isn’t the traditional April 15th, rather its April 18, 2012. This is due to the celebration of Emancipation Day (the day that President Lincoln signed the Declaration of Emancipation) a day earlier than normal (since April 16th is a Saturday this year). As you gather together all of your financial information for fiscal year 2011, minimize your tax liability by keeping the following deductions in mind:
Child Care Deduction
One of the most often overlooked tax deduction line items is the child care deduction. This deduction does not require the taxpayer itemizing deductions and can be taken by any taxpayer who works and has minor children or by any couple where both partners work and have minor children. It can also be taken if one member of a couple is handicapped or disabled and cannot care for the children while the other partner works.
The main items to have available to take the child care deduction are:
Provider’s Social Security number [if an individual]
Provider’s Tax identification number [if an organization]
Provider’s legal name, address and phone number
Total amount paid to Provider
If more than one child, a breakdown of the total dollar amount paid per child
Many taxpayers overlook this particular deduction and it can make a big difference in their return, either by diminishing their payment due or often by increasing a taxpayer’s refund exponentially. In some states it can even result in a state tax refund even when nothing was paid in all year.
Business Expenses and Schedule C
Another often overlooked deduction is business expense. Many taxpayers do not realize that they need to file a Schedule C even for a tiny seemingly innocuous home business. One example is Avon ladies or other cosmetics representatives. They have a number of deductions such as product samples, telephone, home office, wardrobe, computer and office supplies and gas and repairs or standard business mileage deduction if they use their car to deliver product. Most women in this small business arena feel that their business is too small for deductions, but they can greatly assist in the family’s overall tax situation and determine whether they pay in April or get a much-needed refund.
Sales Tax & License Fees
If you itemize, one of the most overlooked deductions is your annual automobile license fee. The part of the fee that is based upon the value of the vehicle can be deducted. Also, if you purchased any big ticket items during the tax year, the sales tax paid on those items could diminish your 2011 taxes as well.
Gambling costs are by far the most overlooked item on tax returns. You can bet that it’s a sure thing that casinos will report any winnings to the IRS, but reporting what you spent acquiring that winning jackpot is your sole responsibility. That’s why, if you’re even a little bit of a gambler, it is always best to save all of your ATM, check cashing or cash bank withdrawal receipts as proof that you had the wherewithal to make those bets that resulted in your winnings. In most cases, the amount of cash outlay over a one year period will be equal to what was won. In any case, you can write off an amount only up to the amount that you won. It would then be a wash, however, and at least you would not have to pay taxes on your winnings.
Many taxpayers remember to deduct their cash contributions to their church and assorted charities, but forget about tangible goods that they may have deducted. Making sure to get a receipt from any charitable organization that you donate clothing, toys, furniture, appliances and other household goods to is always a good idea. In addition, if you have an old car that really isn’t worth very much if you sell it, it could be worth much more as a tax deduction, so be sure to donate it before the end of the tax year.
While it is your responsibility as a citizen of the United States to pay your fair share, it isn’t your duty to pay more than your fair share. Work within the boundaries of the tax code, and remember that the deductions are there for a purpose. If they apply to your circumstance, take full advantage of them!
Crafted by Stacy Nguyen for the firm of Bottar Leone, PLLC. who believe in American principals, like the responsibility of paying taxes and the right to a fair trial. A good Syracuse personal injury lawyer is ready to help you win your case.