CERTIFIED PUBLIC ACCOUNTANT
You may qualify for the Earned Income Credit (“EIC”) from the IRS if you worked last year and earned limited income. The recent recession caused many people to lose their job or have their hours drastically cut last year. You too may be eligible for the first time in 2012.... Continue reading →
Many people today work out of their house. According to IRS records, over 3 million taxpayers claimed a deduction for the business use of their home in 2010. In the past, taxpayers had to file Form 8829, Expenses for Business Use of Your Home, to claim the deduction. Form 8829... Continue reading →
Employers often misclassify actual employees as independent contractors. The government wants these employers to pay employment tax (Social Security, Medicare and unemployment taxes) related to worker misclassification. The IRS initiated a voluntary program to facilitate resolution of worker classification issues and increase tax compliance. The Voluntary Classification Settlement Program (VCSP)... Continue reading →
Businesses who hire independent contractors avoid extra costs associated with employees: payroll tax and liability insurance, compliance with labor and employee benefit regulations, etc. Hiring workers as an independent contractor may seem like an easy option, and many business owners can properly make this classification. However, you could have many... Continue reading →
The IRS imposes penalties to discourage noncompliance. The late filing assessment is 5% of the unpaid balance for each month or partial month the return is late, up to a maximum of 25%; if the return is more than 60 days late, the minimum penalty is the smaller of $135... Continue reading →
