Tag: TAX RETURNS

  • Tax Tips for Extension Filers

    Autumn is upon us, and if you chose to file a tax extension this year, October 15 is your target date…your zero hour…your deadline. Your six-month grace period is coming to an end.
    If it feels as though the past few months have flown by, don’t fret, there is still time to submit your tax return without incurring any additional penalties or interest. We’ve compiled a short list of last-minute tax tips for you extension filers needing to get your returns filed with the IRS by October 15th.

    Electronic vs. Paper
    It may come as a small surprise, but October 15th is the tax deadline for electronically filing your tax return. You are still eligible to file a paper tax return after October 15th, but you will incur those nasty interest charges and late penalties.
    The best decision you could make at this point is to go ahead and e-file your tax return by the 15th. By doing so you will remain within your six-month grace period. There’s no sense in giving the IRS a reason to take more than you owe.

    Double Check Personal Information
    This is it – your last chance to make sure everything contained within your tax return is true and accurate. There are no additional extensions after October 15th.
    Don’t panic, but don’t forget to review your personal information. Make sure your name, birthday, address, and social security information is correct. Also include all W-2s and 1099s, when entering your information.

    IRAs
    October 15th is also the final deadline to fund your SEP-IRA if you requested an automatic extension. If you’ve forgotten about this little deadline, you still have time to make some deposits. Just remember to update your tax paperwork after you’ve funded these accounts, because, although it’s 2013, you’re actually funding your accounts for the 2012 tax year.

    Preparing for the Future
    It’s easy to get stuck in a rut, especially when that rut is filing for a tax extension year after year. Let’s face it, when you file your taxes in October, the last thing you want to think about is preparing for next year’s taxes. But no matter how much you want to forget about taxes, April is always right around the corner.
    Let this be an encouragement for you to get organized this year. The middle of November is a great time to begin gathering your thoughts and your records for the upcoming tax season. And if you would like to save more on your 2013 taxes, use this time to make some year-end financial maneuvers to get yourself in a better position for next year.

    Blog taken from Turbotax

  • 1099-K Reporting Requirements

    1099-K Reporting Requirements for Payment Settlement Entities
    Beginning in January, 2012, payment settlement entities (PSEs) are required by the Housing Assistance Tax Act of 2008 to report on Form 1099-K the following transactions:
    All payments made in settlement of payment card transactions (e.g., credit card);
    Payments in settlement of third party network transactions IF:
    -Gross payments to a participating payee exceed $20,000; AND
    -There are more than 200 transactions with the participating payee.
    Filing Deadlines & Procedures
    Your 1099-Ks are due to merchants by January 31, 2013. Electronically filed 1099-Ks are due to the IRS April 1, 2013 (normally March 31), while paper 1099-Ks are due February 28, 2013.
    File your 1099-K electronically through the FIRE (Filing Information Returns Electronically) option. For information, review Publication 1220 (PDF). If you are considering filing on paper, review General Instructions for Certain Information Returns.
    Verification Processes
    We verify that tax returns are correct and complete using the following processes:
    TIN Matching Program
    Use the IRS Taxpayer Identification Number (TIN) Matching Program to ensure the Forms 1099-K you submit have the correct TIN. The program permits you to verify the TIN furnished by the taxpayer before you file the Forms 1099-K.
    Name Control
    The name control (a sequence of characters derived from a taxpayer’s name) and TIN on an electronically filed return must match our records. Refer to Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs for more.1099-K Requisitos de información para las entidades de liquidación de pago
    A partir de enero de 2012, las entidades de liquidación de pagos (PSE) están obligados por la Ley del Impuesto de Asistencia de Vivienda de 2008 para informar sobre el Formulario 1099-K de las siguientes operaciones:
    Todos los pagos realizados en la liquidación de las transacciones de tarjetas de pago (por ejemplo, tarjeta de crédito);
    Los pagos en la liquidación de operaciones de red de terceras partes si:
    Pagos brutos a un beneficiario participante superan los $ 20.000, Y
    -Hay más de 200 operaciones con el beneficiario participante.
    Plazos de presentación y procedimientos
    Su 1099-K se debe a los comerciantes el 31 de enero de 2013. Electrónicamente presentada 1099-K se deben a que el IRS 1 Abril 2013 (normalmente el 31 de marzo), mientras que el papel 1099-K se deben 28 de febrero 2013.
    Presente su 1099-K por vía electrónica a través de la opción de FIRE (Filing Information Returns Electronically). Para obtener información, revisar la Publicación 1220 (PDF). Si usted está considerando declararse en papel, revise las instrucciones generales para la Información ciertas declaraciones.
    Procesos de Verificación
    Verificamos que las declaraciones de impuestos son correctos y completos con los siguientes procesos:
    Programa Matching TIN
    Utilice el Número de Identificación de Contribuyente del IRS (TIN) Matching Program para asegurar los Formularios 1099-K que tiene presentar el NIF correcto. El programa permite a verificar el TIN proporcionada por el contribuyente antes de presentar los formularios 1099-K.
    Nombre del control
    El control del nombre (una secuencia de caracteres derivados del nombre del contribuyente) y el TIN en una declaración presentada electrónicamente deben coincidir con nuestros registros. Consulte el Reglamento causa razonable y Requisitos para Menores Desaparecidos y incorrecto Nombre / TIN para más.