Thursday, September 30, 2010

#1007 - October 15th - Final Personal Returns Due




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Important Dates

October 15th - Final Tax Deadline for Individuals
January 15th - 4th Quarter Est. Tax Payment for 2010 taxes
October 15th - Final Tax Deadline for 2009

October 15th is fast approaching and is a key deadline for millions of individual taxpayers who requested an extension to file their 2009 tax returns. As many as 10 million tax returns are expected to be filed from taxpayers who requested a six-month extension to file their returns, according to the IRS. This is the final tax deadline, there are no more extensions available for 2009 taxes. If you do not file at this point the following actions may be taken by the IRS:

  • Penalties may be assessed and added to the total amount you owe.
  • The IRS may automatically file a return for you. This will naturally be bare bones, omitting any exemptions or expenses you are entitled to.
  • Based on the IRS substituted return, the IRS may initiate collection. They can put a lien on property and even levy your wages or bank accounts.

If you want to file on time but can't pay the full amount owed, you can request a payment plan by filing a Form 9465. Though you will incur fees, penalties, and interest it still may be beneficial because it spreads the payments out into monthly payments.

We at MB Tax are committed to working at full capacity before October 15th to do our best to ensure that you are filed for 2009 on time. If you have filed an extension, but have not yet made an appointment with us to begin tax prep, please do so as soon as possible. Also, please tell your family and friends about our tax services, we would love to help anyone experiencing this tax urgency. If you need any 2009 tax organizing forms, please see our website at www.mbtaxpro.com.


Preparing for 2010 Taxes

During the months of November and December we encourage you to make an appoinment with us to go over your final numbers for the year and create a tax plan that suits your personal or business needs. This is a great opportunity to get a clear idea of where you stand financially as of 2010, and if there are any adjustments to your financial situation that can be made before the end of the year to maximize your profits and minimize tax liability. Please see our website at www.mbtaxpro.com for help in your tax organization. We have a page full of useful forms to help keep your finances in order.
We also offer bookkeeping services to help you get on track and stay on track. Please call the office and speak with Fern at (503) 595-5890, or you may email Fern at office@mbtaxpro.com to learn more about how bookkeeping may be the right choice for you.
Changes in filing Payroll Tax

The IRS has announced that proposed regulations will expand the use of electronic payment systems for payroll and other tax payments, and discontinue the use of paper coupons next year.

What are Paper Coupons?

In the past, businesses could submit payroll tax payments using a paper coupon by taking the coupon to a bank along with a check for the payroll tax amount. The IRS says the paper coupon system will no longer be maintained by the Treasury Department after Dec. 31, 2010.

What is the New Electronic Payment System?

There is not a new system; the proposed regulations will require use of the existing federal tax deposit process, through the Electronic Federal Tax Payment System (EFTPS).

What is EFTPS?

The Electronic Federal Tax Payment System (EFTPS) was set up to provide taxpayers a way to make payments electronically, instead of mailing them. The IRS says that using EFTPS benefits users because they can make payments at any time, day or night, from anywhere, by computer or phone. EFTPS also reduces payment errors. And you can schedule payments up to 120 days in advance of the payment date.

How Do I Sign Up for EFTPS?

Since you will most likely have to stop using payment deposit coupons come January 1, 2011, it may benefit you to sign up now so you can become comfortable with the service. You can sign up by going to the the EFTPS website at www.eftps.gov or by calling EFTPS Customer Service at 1-800-555-4477. For more information on how to enroll and pay using EFTPS, see IRS Publication 4132 (PDF).


The sun sets on 2001-2003 tax cuts, but what is on the horizon?

At 12:01 a.m. on January 1, 2011, the largest tax increase in American history could go into effect if Congress fails to act. The Investor's Business Daily editorial board explains, "Unless something is done soon, the New Year will also come with a raft of tax hikes - including a return of the death tax - that will be real killers." Also scheduled to end are vital tax credits such as the Earned Income Credit and the Child Tax Credit. These tax increases could cost $2.6 trillion over the next decade, stalling our economic recovery and threatening millions of American jobs. For a family of four earning $50,000, you may have a tax increase next year of $2,100.
This is an incredibly important matter, shaping the next decade of America's economy at least, and we encourage all of you to do your own research on this matter. Opencongress.org is a non profit information site specifically designed to track all bills as they are introduced, become law, or fail to become law. It's very user friendly, with a break down of the language used in each bill, and it provides contact information for every Congress person. They love to hear from their constituants, so if you have an opinion about the upcoming tax hike, feel free to share it!

Bush Era Cuts vs. Obama's Proposal



Income Taxes
CurrentIncome LevelScheduled Rate Next Year
10.00%$0-$16,75015.00%
15.00%$16,751-$68,00015.00%
25.00%$68,001 - $137,30028.00%
28.00%$137,301-$209,25031.00%
33.00%$209,251-$373,65036.00%
35%%$373,651 and above39.60%
*www.wnyc.com


Capital Gains Taxes
CurrentIncome LevelScheduled Rate Next Year
15.00%Couples up to $250,00020.00%
15.00%Couples over $250,00020.00%
*www.wnyc.com

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Wednesday, September 1, 2010