November, 2015
When the IRS thinks you owe money, the send you a letter. (Scam notes: They don’t call you on the phone and demand money without allowing you to dispute the amount—if that happens, it is probably a scam. Don’t send them money over the phone, they are NOT the IRS.)
The letter they send will go to the address they have on file for you. If you don’t respond to their letter, they’ll send another one. And a couple more. After this, they might find your bank account and take the money they think you owe—and that usually gets people’s attention. If you don’t get the letter because they don’t have your proper address, that is your fault for not letting them know how to contact you. If you use a new address on your tax return, they will update your address in their records. There’s a form (hey, it’s the IRS!).
Form 8822 for individuals, or Form 8822-B for businesses (https://www.irs.gov/pub/irs-pdf/f8822.pdf). The second page of the form tells you how to get it to them.
The California Franchise Tax Board also has Form 3533 (https://www.ftb.ca.gov/forms/2014/14_3533.pdf). They allow you to fill this out on-line. You can also file a return with the corrected address, or send in an estimated payment, or do this on-line at “MyFTB” if you have an account.
There is a separate form if you pay payroll taxes with the Employment Development Department, Form DE24 (http://www.edd.ca.gov/pdf_pub_ctr/de24.pdf).
2016 Tax Days on the Move: April 18th…
Emancipation Day celebrates Lincoln signing a law ending slavery (in DC), which occurred April 16, 1862 (The Emancipation Proclamation was an executive order Lincoln issued January 1, 1863 for the whole Union).
The IRS building is in DC (I saw it in late October…from the outside) so they have a holiday on Emancipation Day for DC: April 16th. Except when the holiday is on Saturday, like it is in 2016, so they close the IRS offices on Friday 4/15 instead. Then, Saturday and Sunday, they are closed, so the deadline for individual tax returns will be Monday 4/18/2016. Please don’t wait until then to send materials for your returns.
Partnership Returns were previously due April 15th, and could be extended to September 15th. But they will now be due March 15th, and could be extended to September 15th. The extension must be transmitted/mailed by the original due date of March 15th to be effective, and if you don’t file on time, the extension is “vacated” as if you’d never filed it.
C Corporation Returns were previously due March 15th, and are now due April 15th (April 18th).
S Corporations Returns are STILL DUE MARCH 15th—so if you hear “corporations are due in April” it doesn’t mean you if you have an S Corp. Extensions are good until September 15th.
My policy of charging for extensions will remain in place for 2016 for 2015 returns. If I don’t have your extension fee, I won’t put you on extension. You should receive an engagement letter and terms sheet via email from me in early 2016.
Classes: Basic Payroll and Schedule C
Here’s a link to the seminars page on my website: www.taxbuddha.com/seminars.html
Basic Payroll
In conjunction with the IRS and EDD, I’m going to be doing some Basic
Payroll seminars coming up in the near future.
Basic Payroll Seminar runs 9 am 3 pm with an hour for lunch
The next seminar will be:
San Francisco at the SBA office 455 Market Street, 6th floor
(I take BART to Embarcadero or Montgomery Street)
Tuesday, December 8, 9:00 am – 3:00 pm
Oakland Basic Payroll “Short Course” at 7677 Oakport Street, Suite 400, Oakland CA
Tuesday, November 17, 9:00 am – 12:30 pm
Oakland at 7677 Oakport Street, Suite 400, Oakland CA
Tuesday, December 22, 9:00 am – 3:30 pm
Register by going to http://www.edd.ca.gov/Payroll_Tax_Seminars/ and find your favorite location.
These seminars have proven to be very popular for business owners and bookkeepers, plus they’re free.
How to Prepare your Own Schedule C
Get ready for next year and filing your own Schedule C for last year. Review what the IRS wants to know from you and how to report it for your business. This is a class for business owners who need a basic understanding of their 1040 Schedule C tax forms. We’ll also talk about what to do with the numbers once you have them. We can’t guarantee you won’t get audited, but this class will make it less likely.
I will be at the US SBA office in San Francisco at 455 Market Street, 6th Floor.
Tuesday, November 17, 6:00 pm – 8:30 pm
You can register for this class at http://www.sbatrainings.eventbrite.com
The Eightfold Path to Pay Less Tax and Avoid an Audit
Eight basic things business owners want to know printed in a booklet in “executive summary” form. This is ten years of working with the IRS Tax Code distilled down so it doesn’t take YOU ten years.
Just another way we’re trying to simplify your life. And the purchase is tax deductible!
You can order from Amazon.com. Here’s the link to Amazon: http://www.amazon.com/Eightfold-Path-Less-Avoid-Audit/dp/0615233422/ref=sr_1_22?ie=UTF8&s=books&qid=1226611038&sr=1-22
The booklet also contains sections on how returns are selected for audit,
when to seek professional help, and how long to keep your tax records.
Little Box of Inc: Incorporations Made Easy published on Kindle
The book with tips about how the S Corporation works is now published to Amazon’s Kindle, updated with additional information about S Corporations, and can be found by searching for Andrew S Rogers as author, and click on “Kindle.” Here’s the blurb:
Considering incorporating as an S Corporation? This booklet will help you understand how the S Corporation works, what you need to do to become incorporated and what you need to do once you have a corporation to stay out of trouble. The structure and the requirements are reviewed, as well as helpful tips to use your corporation to reduce your tax liability and retain your status as an S Corporation. I’ve worked with S Corporations for many years, and as a tax preparer, I can choose the kind of entity I have for my business: I choose the S Corporation myself, and I’ve convinced many of my fellow tax preparers to incorporate as well. I’ve divided the information into clear, easy-to-understand topics, and cross-referenced sections when it might be helpful.
After you’ve read this material, you can view on-line videos via YouTube.com for free to access more advanced information about S Corporations. You may also be interested in my “Choice of Entity” class – see below.
Our northern California occasional in Alameda:
1516 Oak Street, Suite 109
Alameda CA 94501
Phone numbers are:
Phone (510) 332-0401
Fax (925) 478-2726
“You too can be enlightened about tax” — Tax Buddha