Employment Classification for Tax Reporting – Independent Contractor or Employee
For proper tax withholding, tax reporting, and payroll processing, business owners need to correctly determine whether individuals' providing business services should be classified as employees or independent contractors. Misclassifying workers can lead to a business being liable for employment taxes for that worker and possible tax penalties. Learn characteristics for proper employment classification.
Tax Filing Penalties and Interest and How to Dispute IRS Penalties
There are several reasons why the IRS assesses tax filing penalties. Note that the IRS is legally bound, under Internal Revenue Code (IRC) § 6601, to charge interest when a tax filer fails to pay the full amount of tax due to the IRS on time. Additionally, the IRS is entitled to charge interest on assessed penalties. Interest and penalties will continue to accrue until the outstanding tax due, interest, and penalties are paid in full. Learn about tax filing requirements and representation in the event that tax penalties and interest are assessed.
Tax Deductions for the Self-Employed
Knowing which self-employed business expenses qualify as tax deductions can have a significant impact on a business's tax liability. Possible self-employed tax deductions include health insurance, transportation, education, and home office expenses. Learn about self-employed individual tax deduction considerations and requirements.
Tax Tips for New Businesses
There are tax requirements that need consideration to ensure tax reporting compliance and eligibility for the maximum number of credits and deductions. Tasks such as selecting the appropriate business entity, establishing a tax reporting year, applying for an Employer Identification Number, and having employees complete required tax withholding forms are some of the requirements. Learn about business entity and tax filing considerations and requirements when starting a business.
Individual Tax Return Filing Considerations for 2021
As we reach the end of the 2021 tax year, now is the time to start sorting your tax documents for an on-time individual income tax return filing. View a listing of items to consider when preparing for the filing of your individual tax return. Each item listed could have a significant impact on the amount you must pay to the IRS or the tax refund you are eligible for.