New 2017 W-2 and W-3 Employer Filing Deadline

Employers are required to file their W-2 and W-3 copies to the Social Security Administration by January 31 in 2017.  In the past, employers had until the end of February to file W-2s if they were paper filing and until the end of March if they were electronically filing.  Extensions of time to file W-2s and W-3s is no longer automatic.  The SSA may grant one 30 day extension in extraordinary circumstances or catastrophe.  
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Information About IRAs and Employee Sponsored Retirement Plans

Frequently asked questions about IRAs and employee sponsored retirement plans can be found here. More information about the different types of retirement plans can be found here. A side-by-side comparison of common features of traditional and Roth IRAs can be found here. Information about the type of distributions that can be rolled over, types of plans and IRAs that may accept rollovers and tax consequences can be found here.  
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IRA Rollovers

Most pre-retirement payments you receive from a retirement plan or IRA can be “rolled over” by depositing the payment in another retirement plan or IRA within 60 days. You can also have your current financial institution or plan administrator directly transfer the payment to another plan or IRA. Why should you roll over your IRA? When you roll over a retirement plan distribution, you generally don’t pay tax on it until you withdraw it from the new plan. If you don’t roll over your payment, it will be taxable (other than qualified Roth distributions and any amounts already taxed). You
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IRS Penalty and Interest Policies

If tax was owed on April 18, 2016 and a payment of an estimate equal to or greater than the tax owed, penalties and interest will be charged by the IRS. Generally, interest will accrue from the due date of the return until the date the tax is paid in full.  The interest rate is set every quarter and is equal to the federal short term interest rate plus 3%.   The IRS compound interest daily. If the full amount of tax owed wasn’t paid on April 18th, the IRS will also charge .5% for each month or part of
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Tax Tips for Job Seekers

If you are looking for a new job in the same line of work, you can deduct the cost of preparing and mailing your resume to prospective employers along with fees paid to placement agencies. If you travel to look for a new job, you may be able to deduct the cost of your trip.  The IRS has specific guidelines for deducting business travel expenses and they can be read here. Job search expenses are listed on Schedule A. Reimbursed expenses cannot be deducted. Expenses incurred for looking for a first job or a the first job in a long time cannot
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What Taxpayers Need To Know About Hobbies That Produce Income

Taxpayers are required to report income from hobbies on their tax return. There are 3 areas to consider if income is produced from a hobby: 1. First, decide if the activity is a hobby or a business based on the 9 factors below–all 9 factors should be considered –no one factor is decisive: Do you carry on the activity in a businesslike manner? Do you put the time and effort you into the activity to intend to make a profit? Do you depend on income from the activity for your livelihood? If you have losses, are your losses due to
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Individual Tax Extension Deadline is October 17

Taxpayers who filed extensions should complete and file their returns by Monday, October 17th. If you owe taxes, filing on time will help you avoid a potential late filing penalty. If you owe tax money and can’t pay all of your taxes, pay as much as you can to reduce interest and penalties for late payment. The IRS offers installment agreements so taxpayers can pay their bill over time.  Interest and penalties will accrue until the tax bill is paid.  So, it’s best to pay as much as you can as quickly as you can.
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Tax Tips For Vacation Rental Property Owners

If you own vacation rental property and rent it out for more than 15 days per year, then you will need to report the rental income on your tax return. If your vacation rental property is also used as a personal residence, then your rental expense deduction will be limited to the amount of rent you received. Rental property income and expenses are reported on Schedule E of your tax return.  Personal deductions such as mortgage interest and property taxes are reported on Schedule A. If you personally use your rental property and also rent it out, then you will
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Tax Tips for Starting a Business

There are many tax considerations to consider when you start a business.  The list below is a good place to start. Business Structure: When you start a business, you need to decide the structure for your business.  Most businesses are either sole proprietorships, partnerships, corporations, limited liability companies, or professional limited liability companies.  Each structure has unique tax obligations.  A CPA can help you decide the best structure for your business. Business Taxes: Every business has to pay tax.  There are 4 types of business taxes: income taxes self-employment taxes employment taxes excise taxes The types of taxes a business
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What Taxpayers Need To Know About Identity Theft

The IRS issued a summer time tax tip about identity theft. Identity theft is a growing problem and one of which I have personally been a victim. The following actions will help protect your identity: 1. Keep your social security cards in a safe deposit box and only give your social security number out when absolutely necessary. 2. Make sure you are using anti-virus and anti-spam programs on your computer. 3. Make sure your computer and phone requires a password. 4. Make sure all your passwords are complex and contain numbers and special characters in addition to letters. Change your
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