6/2/2011
Deposit payroll tax for payments on May 25-27 if the semiweekly
deposit rule applies.



6/3/2011
Deposit payroll tax for payments on May 28-31 if the semiweekly
deposit rule applies.



6/8/2011
Deposit payroll tax for payments on Jun 1-3 if the semiweekly
deposit rule applies.



6/10/2011
Employers: Employees are required to report to you tips of $20 or
more earned during May.

Deposit payroll tax for payments on Jun 4-7 if the semiweekly
deposit rule applies.



6/15/2011
Individuals outside the U.S.: File 2010 Form 1040.

Individuals: Pay the second installment of estimated tax for
2011.

Employers: Deposit payroll tax for May if the monthly deposit
rule applies.

Corporations: Deposit the second installment of your 2011
estimated tax.

Deposit payroll tax for payments on Jun 8-10 if the semiweekly
deposit rule applies.



6/17/2011
Deposit payroll tax for payments on Jun 11-14 if the semiweekly
deposit rule applies.



6/22/2011
Deposit payroll tax for payments on Jun 15-17 if the semiweekly
deposit rule applies.



6/24/2011
Deposit payroll tax for payments on Jun 18-21 if the semiweekly
deposit rule applies.



6/29/2011
Deposit payroll tax for payments on Jun 22-24 if the semiweekly
deposit rule applies.



6/30/2011
File Form 730 and pay the tax on wagers accepted during May.

File Form 2290 and pay the tax for vehicles first used during May.



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Employers must pay their employees the hourly state minimum wage for all hours worked in Florida.  The definitions of “employer”, “employee”, and “wage” for state purposes are the same as those established under the federal Fair Labor Standards Act (FLSA).  Employers of “tipped employees” who meet eligibility requirements for the tip credit under the FLSA, may count tips actually received as wages under the Florida minimum wage.  However, the employer must pay “tipped employees” a direct wage.  The direct wage is calculated as equal to the minimum wage ($7.31) minus the 2003 tip credit ($3.02), or a direct hourly wage of $4.29 as of June 1, 2011.

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Keeping good records is a very important part of the growth and maintenance of your business. Good records will help you:

• Monitor the progress of your business
• Prepare your financial statements
• Identify source of receipts
• Keep track of deductible expenses
• Prepare your tax returns
• Support items reported on tax returns

Monitor the progress of your business

You need good records to monitor the progress of your business. Records can show whether your business is improving, which items are selling, or what changes you need to make. Good records can increase the likelihood of business success. 

Prepare your financial statements

You need good records to prepare accurate financial statements. These include income (profit and loss) statements and balance sheets. These statements can help you in dealing with your bank or creditors and help you manage your business. 

• An income statement shows the business income and expenses for a given period.
• A balance sheet shows the assets, liabilities, and your equity in the business on a given date. 

Identify source of receipts

You will receive money or property from many sources. Your records can identify the source of your receipts. You need this information to separate business from non-business receipts and taxable from nontaxable income. 

Keep track of deductible expenses

You may forget expenses when preparing your tax return unless you record them when they occur.

Prepare your tax return

You need good records to prepare your tax returns. These records must support the income, expenses, and credits you report. Generally, these are the same records you use to monitor your business and prepare your financial statement.

Support items reported on tax returns

You must keep your business records available at all times for inspection by the IRS. If the IRS examines any of your tax returns, you may be asked to explain the items reported. A complete set of records will speed up the examination.

So what’s the best way to keep records?

Simple: use any recordkeeping system that clearly and accurately reflects your income and expenses. Keep in mind your tax records must support all the income, tax deductions and credits listed on your tax return. Be sure to separate your business and personal receipts and your taxable and nontaxable income.

Recording Expenses: Record your expenses when you pay or incur them, depending on your method of accounting. It’s easy to forget last year’s expenses when you’re filling out this year’s return. Don’t overlook deductions for which you qualify.

Keeping a Record of your Business Assets: Your business assets are the property and equipment you own and use for your business. Keep a complete and detailed record of such assets showing when you acquired them, how much you paid for them and how the assets are used in your business. This record will allow you to depreciate your assets properly and report the correct gain or loss when you dispose of them.

How long should I keep records?

The length of time you should keep a document depends on the action, expense, or event the document verifies. You must keep your records as long as they may be needed to prove the income or deductions on a tax return.

How long should I keep employment tax records?

You must keep all records of employment taxes for at least four years.

Are the records connected to assets?

Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. You must keep these records to figure any depreciation, amortization or depletion deduction and to figure the gain or loss when you sell or otherwise dispose of the property.

What should I do when I no longer need my records for tax purposes?

When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. For example, your insurance company or creditors may require you to keep them longer than the IRS does.

For further information on our accounting, bookeeping, tax preparation, auditing, Quickbooks classes, support, training and consulting, Contact Us or send us Email. Our CPA, Certified Quickbooks Pro Advisor, and customer service team will gladly answer all your questions.

There are several ways to file Form 4868 for an extension.

• File electronically
• Paid prepares
• Tax software
• Download a paper version Form 4868 and file by mail.

 If you cannot pay the full amount you will still benefit from filing the return and paying as much as possible by April 18.

If you are unable to pay the total balance due, you should pay as much as possible and apply for an installment agreement to avoid penalties and interest.

Taxpayers wishing to pay off a tax debt through an installment agreement, and owe:

• $25,000 or less in combined tax, penalties, and interest can use the Online Payment Agreement (OPA) or call the number on the bill or notice (have the bill or notice available, along with the social security number). A fill-in Request for Installment Agreement, Form 9465 (PDF), is available online that can be mailed to the address on the bill.
• More than $25,000 in combined tax, penalties, and interest may still qualify for an installment agreement, but a Collection Information Statement, Form 433F (PDF) may need to be completed. Call the number on the bill or mail the Request for Installment Agreement, Form 9465 (PDF) and Form 433F (PDF) to the address on the bill.

Payment options:

There are several payment options available to taxpayers who have a balance due.

Payments can be made by:

• Electronic funds withdrawal
• Credit or debit card
• The Electronic Federal Tax Payment System 
• Check or Money Order

Taxpayers who pay by check or money order should make the payment out to the “United States Treasury.” The tax year, form number and Social Security number should all be included on the check or money order. Also, include Form 1040-V, Payment Voucher, along with the payment and tax return. If you have already submitted your tax return but still need to pay all or some of the balance, you may mail the check or money order to the IRS with Form 1040-V.

Reminder, an extension of time to file is not an extension of time to pay. 

For further information on our accounting, bookeeping, tax preparation, auditing, Quickbooks classes, support, training and consulting, Contact Us or send us Email. Our CPA, Certified Quickbooks Pro Advisor, and customer service team will gladly answer all your questions.

4/1/2011

4/6/2011 Deposit payroll tax for payments on Mar 30- Apr 1 (semiweekly deposit).

4/8/2011 Deposit payroll tax for payments on Apr 2-5 (semiweekly
deposit).

4/11/2011 Employers: Employees are required to report to you tips of $20 or
more earned during March.

4/13/2011 Deposit payroll tax for payments on Apr 6-8 (semiweekly
deposit).

4/18/2011 Individuals: File 2010 Form 1040, 1040A, or 1040EZ. For
automatic 6-month extension file Form 4868 and deposit
estimated tax. Pay the first installment of 2011 estimated tax.

Partnerships: File 2010 Form 1065 and furnish a copy of Sch. K-1
to each partner.

Electing Large Partnerships: File 2010 Form 1065 calendar year
return.

Household Employers: File Sch. H with Form 1040 if you paid
$1,700 or more to a household employee.

Corporations: Deposit the first installment of your estimated
tax for 2011.

Employers: Deposit payroll tax for Mar. if the monthly deposit
rule applies.

Deposit payroll tax for payments on Apr 9-12 if the semiweekly
deposit rule applies.

4/20/2011 Deposit payroll tax for payments on Apr 13-15 (semiweekly
deposit).

4/22/2011 Deposit payroll tax for payments on Apr 16-19 (semiweekly
deposit).

4/27/2011 Deposit payroll tax for payments on Apr 20-22 (semiweekly
deposit).

4/29/2011 Deposit payroll tax for payments on Apr 23-26 (semiweekly
deposit).

For further information on our accounting, bookeeping, tax preparation, auditing, Quickbooks classes, support, training and consulting, Contact Us or send us Email. Our CPA, Certified Quickbooks Pro Advisor, and customer service team will gladly answer all your questions.

SOLE PROPRIETOR - Individual who owns an unincorporated business by himself/herself.

PARTNERSHIP – a relationship where two or more persons join together to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.

CORPORATION – a relationship where prospective shareholders exchange money, property, or both, for the corporation’s capital stock. Profits are taxed to the corporation when earned and then taxed to the shareholders when distributed as dividends.

S CORPORATION – a corporation, meeting certain criteria, that elects to be treated as an S corporation. Generally an S corporation is exempt from income tax; the shareholders report the S corporation’s income, deductions, loss and credits on their individual tax returns.

LIMITED LIABILITY CORPORATION – an entity— statutorily authorized in certain states—that is characterized by limited liability for debts similar to that of a corporation, management by members or managers, and pass-through taxation similar to that of a partnership.

For further information on our accounting, bookeeping, tax preparation, auditing, Quickbooks classes, support, training and consulting, Contact Us or send us Email. Our CPA, Certified Quickbooks Pro Advisor, and customer service team will gladly answer all your questions.

3/4/2011
Deposit payroll tax for payments on Feb 26 – Mar 1 if the
semiweekly deposit rule applies.



3/9/2011
Deposit payroll tax for payments on Mar 2-4 if the semiweekly
deposit rule applies.



3/10/2011
Employers: Employees are required to report to you tips of $20 or
more earned during February.


3/11/2011
Deposit payroll tax for payments on Mar 5-8 if the semiweekly
deposit rule applies.



3/15/2011
Corporations: File Form 1120 for 2010 calendar year and pay any
tax due. For automatic 6-month extension, file Form 7004 and
deposit estimated tax.

Employers: Deposit payroll tax for Feb. if the monthly deposit
rule applies.

S Corporations: File Form 1120S for 2010 calendar year and pay
any tax due. Furnish a copy of Sch. K-1 to each shareholder. File
Form 2553 to elect S Corporation status beginning with calendar
year 2011.

File Form 2553 to elect to be treated as an S Corporation
beginning with calendar year 2011.

Electing Large Partnerships: Furnish Sch. K-1 (Form 1065-B) to
each partner.



3/16/2011
Deposit payroll tax for payments on Mar 9-11 if the semiweekly
deposit rule applies.



3/18/2011
Deposit payroll tax for payments on Mar 12-15 if the semiweekly
deposit rule applies.



3/23/2011
Deposit payroll tax for payments on Mar 16-18 if the semiweekly
deposit rule applies.



3/25/2011
Deposit payroll tax for payments on Mar 19-22 if the semiweekly
deposit rule applies.



3/30/2011
Deposit payroll tax for payments on Mar 23-25 if the semiweekly
deposit rule applies.



3/31/2011
Electronically file Forms W-2, W-2G, 1098, 1099, and 8027.

File Form 2290 and pay the tax for vehicles first used in
February.

File Form 730 and pay the tax on wagers accepted during February.



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One major mistake many new business owners make is not adequately budgeting for taxes due. If you can’t pay the full amount, it’s better to at least file your tax forms by their due dates. Partial payments will help reduce the amount of penalties and interest.

If you are still unable to pay at the next due date, continue to file your returns on time to avoid the failure-to-file penalty and file the Form 9465, Installment Agreement Request, and propose a monthly payment date and amount.

The penalty rate is ½ of 1 percent (.5%) each month tax is paid late. The penalty rate may increase to 1%, or the rate may decrease to ¼ of 1 percent (.25%) while an approved Installment Agreement is in effect. Regardless of the penalty rate, the total penalty cannot exceed 25%. However, you must have filed the tax return on time.

Estimated Tax Payments: Self-Employed Individuals

For most employees, employers deduct Social Security and Medicare taxes from each paycheck. However, self-employed taxpayers pay for coverage through self-employment tax. Generally, if you carry on a trade or business as a sole proprietor, an independent contractor, a member of a partnership that carries on a trade or business, or are otherwise in business for yourself, then you are considered self-employed.

The maximum amount of net earnings subject to the Social Security portion of the self-employment tax generally changes each year.

Many self-employed people will have to make quarterly estimated tax payments. It’s important to remember that your self-employment tax will increase the total federal tax you owe. Be sure to take this into account when determining the amount of estimated tax to pay each quarter.

To pay estimated taxes, individuals can use Form 1040-ES, Estimated Tax for Individuals. When you file your tax return, you must complete Schedule SE to report your self-employment income and calculate the amount of your self-employment tax due.

Estimated Tax Payments: Corporations

You generally have to make estimated tax payments for your corporation if you expect to owe tax of $500 or more when you file.

For further information on our accounting, bookeeping, tax preparation, auditing, Quickbooks classes, support, training and consulting, Contact Us or send us Email. Our CPA, Certified Quickbooks Pro Advisor, and customer service team will gladly answer all your questions.

Health Insurance Deduction Reduces Self Employment Tax 

In 2010, eligible self-employed individuals can use the self-employed health insurance deduction to reduce their social security self-employment tax liability in addition to their income tax liability. As in the past, eligible taxpayers claim this deduction on Form 1040 Line 29. But in 2010, eligible taxpayers can also enter this amount on Schedule SE Line 3, thus reducing net earnings from self-employment subject to the 15.3 percent social security self-employment tax.

Premiums paid for health insurance covering the taxpayer, spouse and dependents generally qualify for this deduction. Premiums paid for coverage of an adult child under age 27 at the end of the year, for the time period beginning on or after March 30, 2010, also qualify for this deduction, even if the child is not the taxpayer’s dependent.

As before, the insurance plan must be set up under the taxpayer’s business, and the taxpayer cannot be eligible to participate in an employer-sponsored health plan. Details, including a worksheet, are in the instructions to Form 1040.

First-time homebuyer credit

You must meet the required deadlines to be eligible to claim the credit.  You must have bought — or entered into a binding contract to buy — a principal residence on or before April 30, 2010. If you entered into a binding contract by April 30, 2010, you must have closed or gone to settlement on the home on or before Sept. 30, 2010.   Because of the documentation requirements for claiming the credit, taxpayers who claim the credit on their 2010 tax return must file a paper — not electronic — return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, and a properly executed copy of a settlement statement used to complete the purchase.

Taxpayers who claimed the first-time homebuyer credit for a home bought in 2008 must generally begin repaying it on the 2010 return. In most cases, the credit must be repaid over a 15-year period. Many of those affected by this requirement received reminder letters from the IRS.

A repayment requirement also applies to a taxpayer who claimed the credit on either their 2008 or 2009 return and then sold it or stopped using the home as their main home in 2010. Use Form 5405 to report the repayment.

In addition, certain members of the armed forces and some other taxpayers still have time to buy a home and take the credit. See Form 5405 and its instructions for details.

Standard Mileage Rates for 2010

The standard mileage rate for business use of a car, van, pick-up or panel truck is 50 cents for each mile driven. The rate for the cost of operating a vehicle for medical reasons or as part of a deductible move is 16.5 cents per mile. The rate for using a car to provide services to charitable organizations is set by law and remains at 14 cents a mile.

Tax Breaks Extended

Several tax breaks that expired at the end of 2009 were renewed and can be claimed on 2010 returns. They include:
• State and local general sales tax deduction, primarily benefiting people living in areas without state and local income taxes. Claim on Schedule A, Line 5.
• Higher education tuition and fees deduction benefiting parents and students. Claim on Form 8917.
• Educator expense deduction for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250, Claim on Form 1040, Line 23 or Form 1040A Line 16.
• District of Columbia first-time homebuyer credit. Claim on Form 8859

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To file, click the box “File Current Year Annual Report or Amended Annual Report”
on the website homepage.  Step by step instructions are also available.

Payment can be made by credit card, check, or prepaid account. 
It’s important that you file by May 1st to avoid a $400 late fee.  This late fee cannot be waived.

For further information on our accounting, bookeeping, tax preparation, auditing, Quickbooks classes, support, training and consulting, Contact Us or send us Email. Our CPA, Certified Quickbooks Pro Advisor, and customer service team will gladly answer all your questions.