A recent U.S. Supreme Court ruling has many small online retailers panicking. The high court ruled that states are now allowed to collect tax from online sellers who sell to consumers in their state. In other words, if a Seattle resident orders from an online store based in Tennessee, the Tennessee-based stored will need to start charging buyers sales tax, as well as paying this tax to Washington state.
What small businesses cannot do to qualify for new tax break
With the announcement of the 20 percent income tax break, many small businesses in Seattle are changing their tactics quickly to qualify for it. They go to their accountants who suggest potentially risky ideas that coincide with the new law and could be beneficial in saving the company money.
However, the IRS recently proposed laws on these deductions to limit what some business owners are able to do to qualify for the tax break. Before you consult with your accountant on ways you can take advantage of this new law, you should be aware of how you could lose your eligibility for it.
Solutions for mounting tax debt
Debt is stressful and can negatively impact daily life. Screening calls in fear of creditors and ignoring mail as it compiles is no way to live. Tax debt only gets worse if you ignore it. Plan to eliminate tax debt with the following potential strategies.
Pay down debts with a budget
7 examples of reasonable causes for IRS penalty abatement
When federal tax obligations are not met, whether by accident or intention, hefty fees and/or penalties may occur. The good news is the IRS will take into consideration an array of reasonable causes for failure to file a tax return or late payments. If an individual or a business can establish a reasonable cause, it may be wise to request a penalty abatement from the IRS. The IRS will consider waiving penalties and/or fees for various sound reasons.
Ways to request penalty relief
A tariff bill could have wide-ranging impact on U.S manufacturing
Before Donald Trump was president, he garnered headlines by promising to return product manufacturing to the United States. He visited North Carolina and singled out a local company, Leviton Manufacturing. The company, a maker of light switches and electrical outlets, had closed factories in the state and was outsourcing its manufacturing overseas. According to The Atlantic, Trump vowed to raise taxes for companies like Leviton.
You filed for a tax extension. Now what?
Taxpayers received a little extra time to file their taxes this year. The usual federal tax deadline is April 15th, however, due to the weekend and Emancipation Day, taxpayers received an extra two days to file this year. Additionally, the IRS website experienced multiple outages hours before the midnight filing deadline. Due to the issue, the IRS is giving taxpayers until midnight, April 18th, to file.
If you needed extra time to gather information and file your 2017 tax return then you may have filed for an extension. The IRS expected more than 13 million extension requests last year, so you are not alone if you did not meet the deadline. You can now avoid the failure-to-file penalty. You have taken the right measures to submit the appropriate forms, but that does not mean you are shielded from other types of penalties.
IRS ending voluntary disclosure for foreign assets
The Internal Revenue Service (IRS) announced an end to the Offshore Voluntary Disclosure Program (OVDP). The program will end on September 28, 2018, leaving tax payers six months to voluntarily disclose foreign financial assets. Business owners with undisclosed foreign assets should utilize the time to become compliant.
A history of arrears
Take advantage of business tax credits
In the state of Washington, business and occupation (B & O) taxes are a major source of state revenue. No matter what industry your business is in, you may qualify for one or more B & O tax credits and be able to improve your bottom line. Here are a few of the B & O tax credits advantageous to a wide variety of business owners.
Multiple Activities
Navigating tax code in Washington state could lead to frustration
Taxes originally came about to help raise money to run the U.S., state, and local governments on behalf of its citizens. You practically need a degree in tax law in order to understand the convoluted codes and structures that have arisen to support the system, however.
Taxes aren’t just used to fund the government. They can be used to encourage some behaviors and punish others. They reward loyalty, especially with regard to fundraising and shift the economic performance of financial systems.
A Tax Checklist To Complete By Year End
Tax filing season is getting closer, but there are still some things taxpayers can do to impact their 2017 tax return. Failing to accurately and comprehensively complete your tax return can result in delays and even penalties.
Even if you currently owe the Internal Revenue Service (IRS) money, it is important to file a tax return. If you do not file your return in time then the IRS will charge you an additional 5 percent failure to file fee every month. Contact an attorney if you are unsure what steps to take when facing unpaid taxes. The IRS states that you should complete this checklist by December 31st to get ready for filing season, no matter your circumstances.
