Are you a self-employed individual? If you carry on a trade or business as a sole proprietor, an independent contractor, member of a partnership that carries on a trade or business or are otherwise in business for yourself, then you ARE considered SELF-EMPLOYED.
This means you may owe self-employment tax on your net earnings of your business. This tax is usually calculated when you file your individual income taxes and is added onto the tax due on your return. Many self-employed taxpayers should make estimated tax payments. The next payment is due on or before January 15, 2012. If you need the appropriate tax forms/vouchers, please call and I will help you calculate the estimated amount due to alleviate penalties at or before the April 15th deadline.
NOW is the time to review your business bottom line(proft/loss) for 2011. It is time to plan for year end and TAX TIME. Are there investments you could make in your business that would make your life easier and more profitable? Now is the time to get costs on these possible purchases before year end. Please call is you need help in this exercise.
Be aware of ways in which identity theft can occur with your tax records. Whenever you get an IRS notice, PLEASE answer the letter immediately. DON’T ignore the letter. AGAIN, I am available to help with the correspondence. Putting off contacting the IRS, especially in the case of notices requesting payment, can increase the amount you owe because penalties and interest keep accruing.
Currently, the IRS and state tax organizations are offering tax amnesty programs for taxpayers who may have neglected to pay/file returns in the past. The program include other taxes beside income taxes such as CAT tax, Sales & Sellers Use, Employer & School District Withholding, etc. This program is only available for a designated period of time. If you know you are in default, NOW is the time to review these programs. Tax amnesty provides an opportunity for taxpayers to save significant money because of reduced interest charges and no penalty charges. It also reduces taxpayer’s future exposure.