Tuesday, February 22, 2011
Monday, February 21, 2011
Sunday, February 20, 2011
Colonial Income Tax Service Located in Historic New Castle Delaware 19720: IRS Begins Processing Tax Forms Affected by Late T...
Colonial Income Tax Service Located in Historic New Castle Delaware 19720: IRS Begins Processing Tax Forms Affected by Late T...: "IRS Begins Processing Tax Forms Affected by Late Tax Changes; Taxpayers can e-File Immediately"
Wednesday, February 16, 2011
Delaware Colonial Income Tax Preparation Service LLC Located in New Castle 19720 - New Castle, DE (Delaware) | 302-322-6881
Delaware Colonial Income Tax Preparation Service LLC Located in New Castle 19720 - New Castle, DE (Delaware) 302-322-6881
U.S. ~ New Castle, DE ~ Financial ~ Tax Return Preparation Services ~ Tax Return Preparation and Filing ~ Delaware Colonial Income Tax Preparation Service LLC Located in New Castle 19720
U.S. ~ New Castle, DE ~ Financial ~ Tax Return Preparation Services ~ Tax Return Preparation and Filing ~ Delaware Colonial Income Tax Preparation Service LLC Located in New Castle 19720
Tuesday, February 15, 2011
Colonial Income Tax Service Located in Historic New Castle Delaware 19720: http://www.local.com/business/details/new-castle-d...
Colonial Income Tax Service Located in Historic New Castle Delaware 19720: http://www.local.com/business/details/new-castle-d...: "http://www.local.com/business/details/new-castle-de/colonial-income-tax-service-llc-117011029/"
Saturday, February 12, 2011
Friday, February 11, 2011
New businesses formed per week 1,809,140 New Companies in the U.S.
New businesses formed per week 1,809,140 New Companies in the U.S.: "On average there are 34,791 new businesses formed every week in this market."
Thursday, February 10, 2011
Update on Feb. 14 start date for processing tax returns
Update on Feb. 14 start date for processing tax returns
Update on Feb. 14 start date for processing tax returns
The Internal Revenue Service plans a Feb. 14 start date for processing tax returns delayed by last month’s tax law changes. The IRS reminded taxpayers affected by the delay they can begin preparing their tax returns immediately because many software providers are ready now to accept these returns.
Beginning Feb. 14, the IRS will start processing both paper and e-filed returns claiming itemized deductions on Schedule A, the higher education tuition and fees deduction on Form 8917 and the educator expenses deduction. Based on filings last year, about nine million tax returns claimed any of these deductions on returns received by the IRS before Feb. 14.
People using e-file for these delayed forms can get a head start because many major software providers have announced they will accept these impacted returns immediately. The software providers will hold onto the returns and then electronically submit them after the IRS systems open on Feb. 14 for the delayed forms.
Taxpayers using commercial software can check with their providers for specific instructions. Those who use a paid tax preparer should check with their preparer, who also may be holding returns until the updates are complete.
Most other returns, including those claiming the Earned Income Tax Credit (EITC), education tax credits, child tax credit and other popular tax breaks, can be filed as normal, immediately.
The IRS needed the extra time to update its systems to accommodate the tax law changes without disrupting other operations tied to the filing season. The delay followed the Dec. 17 enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which extended a number of expiring provisions including the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.
The Internal Revenue Service plans a Feb. 14 start date for processing tax returns delayed by last month’s tax law changes. The IRS reminded taxpayers affected by the delay they can begin preparing their tax returns immediately because many software providers are ready now to accept these returns.
Beginning Feb. 14, the IRS will start processing both paper and e-filed returns claiming itemized deductions on Schedule A, the higher education tuition and fees deduction on Form 8917 and the educator expenses deduction. Based on filings last year, about nine million tax returns claimed any of these deductions on returns received by the IRS before Feb. 14.
People using e-file for these delayed forms can get a head start because many major software providers have announced they will accept these impacted returns immediately. The software providers will hold onto the returns and then electronically submit them after the IRS systems open on Feb. 14 for the delayed forms.
Taxpayers using commercial software can check with their providers for specific instructions. Those who use a paid tax preparer should check with their preparer, who also may be holding returns until the updates are complete.
Most other returns, including those claiming the Earned Income Tax Credit (EITC), education tax credits, child tax credit and other popular tax breaks, can be filed as normal, immediately.
The IRS needed the extra time to update its systems to accommodate the tax law changes without disrupting other operations tied to the filing season. The delay followed the Dec. 17 enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which extended a number of expiring provisions including the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.
Tuesday, February 8, 2011
Monday, February 7, 2011
Colonial Income Tax Taxpayers To Get Over 59 Billion With New EITC Act!
Taxpayers To Get Over 59 Billion With New EITC Act! This IRS information is being presented for informational purposes only by Colonial Income Tax Preparation Service Located at the Gateway of Historic New Castle at 700 Delaware Street, New Castle DE 19720: 302-322-1135 The Earned Income Tax Credit (EITC) is a tax credit for good hard working Americans . Nationwide last year, over 26 million eligible taxpayers received nearly $59 billion total in EITC. The IRS encourages all eligible taxpayers to claim the EITC credit as it is a valuable tool to lower their taxes or to claim a refund. The American Recovery and Reinvestment Act of 2009 created a new category of families with three or more children and increased the maximum benefit of EITC for tax years 2009 and 2010. The Tax Relief and Job Creation Act of 2010 extended these changes through 2012. To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return. Many taxpayers who qualify for EITC may also be eligible for free tax preparation, such as IRS Free File, and electronic filing by participating tax professionals and volunteers. Taxpayers and tax professionals should review the rules before attempting to claim the EITC. The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments. Unemployment benefits are not considered earned income, but must be included in income calculations. Do You Qualify for EITC? To qualify, you must meet certain requirements and file a U.S. Individual Income Tax Return. As described below, some EITC rules apply to everyone. There are also special rules for people who have children and for those who do not. Individuals and families must meet certain general requirements:
Your income cannot exceed certain limitations. For Tax Year 2010, your earned income and adjusted grow income (AGI) must each be less than:
If you claim a child, he or she must meet these eligibility tests:
Your qualifying child cannot be used by more than one person to claim EITC. If a child meets the rules to be a qualifying child of more than one person, only one person can treat that child as a qualifying child and claim EITC. Also, if a qualifying child can be claimed by both a parent and another person, the other person must have an AGI higher than the parent in order to claim the child for EITC purposes. If you don’t have a child, you must meet three additional tests:
Credit Limits for 2010 Tax Year Income and family size determine the amount of the EITC. The Earned Income Credit Table, which shows the credit amounts, is included in the Instruction booklet for Form 1040 and in Publication 596, Earned Income Credit. For tax year 2010, the maximum credit amounts are:
Combat Zone Pay Members of the military have the option to include their tax exempt combat zone pay when computing their earned income for EITC. The combat pay remains exempt for federal taxes. However, families should be aware that they must include all of the combat pay or none of it. For example, if the inclusion of combat pay would push a taxpayer’s adjusted gross income above the EITC income limit, taxpayers should leave it out of their EITC calculations. If, however, the inclusion of combat pay would enable a taxpayer to obtain a higher refund, then combat pay should be included. On-Line Tools If you are in doubt about your eligibility, you or your tax preparer may use the EITC Assistant on the IRS website. The EITC Assistant, available in English and Spanish ( Asistente EITC), will help you determine your eligibility by answering a few simple questions. For tax professionals, there is an electronic tool kit at EITC Central. Avoid Common Errors You are responsible for the accuracy of your tax return. The rules for EITC can be complicated, so you should seek assistance if you are unsure of your eligibility. Some common EITC errors are:
The IRS continues to work on ways to reduce these errors. If you receive a letter from the IRS requesting additional information about your EITC, please reply immediately to avoid delaying your EITC refund. If you need assistance or if you have questions, you should call the number included in the IRS letter. Beware of Scams A deliberate error can have lasting impact on your eligibility to claim EITC. Beware of scams that claim to increase your EITC refund. Scams that create fictitious qualifying children or inflate income levels to get the maximum EITC could leave you with a penalty. If your EITC claim was reduced or denied after tax year 1996 for any reason other than a mathematical or clerical error, you must file Form 8862, Information To Claim Earned Income Credit After Disallowance, with your next return if you wish to claim the credit. How to Claim EITC Publication 596, Earned Income Credit, explains the process. The publication is available on this website or by calling 800-829-3676. Publication 596 also is available in Spanish. The Instructions for Form 1040 can help you determine your eligibility. The instructions contain a worksheet and the earned income credit table to help you determine the amount of your credit. If you are claiming the EITC with a qualifying child, you must complete Schedule EIC and attach it to your tax return. Schedule EIC provides IRS with information about your qualifying children, including their names, ages, SSNs, relationship to you and the amount of time they lived with you during the year. How to Get Tax Help Taxpayers can find help in determining eligibility by using the EITC Assistant on the IRS website, available in English and Spanish. Taxpayers who qualify for EITC should explore available free tax preparation services. The IRS provides assistance to low-income taxpayers at more than 400 IRS offices nationwide. We also partner with local community and non-profit organizations to provide free tax return preparation for low-income and elderly taxpayers at more than 12,000 volunteer sites nationwide. Other options include the use of Free File, the free tax preparation and electronic filing program provided by software companies. Many e-file software providers and tax professionals also provide free services for low income taxpayers. To find a free tax site in their area, taxpayers should check the Volunteer Income Tax Assistance site listing on this website or call the IRS at 800-906-9887. EITC recipients should remember they can get faster access to their refund by using direct deposit. If you use IRS e-file and direct deposit, you could have your refund in half the time of a paper return. New on EITC Starting in January 2011, taxpayers can no longer get advance payments of the earned income tax credit in their pay throughout the year as they could in 2010 and earlier years. This is because the law has changed. However, this does not affect EITC claims on tax returns. |
This IRS information is being presented for informational purposes only
Taxpayers To Get Over 59 Billion With New EITC Act! This IRS information is being presented for informational purposes only by Colonial Income Tax Preparation Service Located at the Gateway of Historic New Castle at 700 Delaware Street, New Castle DE 19720: 302-322-1135 The Earned Income Tax Credit (EITC) is a tax credit for good hard working Americans . Nationwide last year, over 26 million eligible taxpayers received nearly $59 billion total in EITC. The IRS encourages all eligible taxpayers to claim the EITC credit as it is a valuable tool to lower their taxes or to claim a refund. The American Recovery and Reinvestment Act of 2009 created a new category of families with three or more children and increased the maximum benefit of EITC for tax years 2009 and 2010. The Tax Relief and Job Creation Act of 2010 extended these changes through 2012. To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return. Many taxpayers who qualify for EITC may also be eligible for free tax preparation, such as IRS Free File, and electronic filing by participating tax professionals and volunteers. Taxpayers and tax professionals should review the rules before attempting to claim the EITC. The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments. Unemployment benefits are not considered earned income, but must be included in income calculations. Do You Qualify for EITC? To qualify, you must meet certain requirements and file a U.S. Individual Income Tax Return. As described below, some EITC rules apply to everyone. There are also special rules for people who have children and for those who do not. Individuals and families must meet certain general requirements:
Your income cannot exceed certain limitations. For Tax Year 2010, your earned income and adjusted grow income (AGI) must each be less than:
If you claim a child, he or she must meet these eligibility tests:
Your qualifying child cannot be used by more than one person to claim EITC. If a child meets the rules to be a qualifying child of more than one person, only one person can treat that child as a qualifying child and claim EITC. Also, if a qualifying child can be claimed by both a parent and another person, the other person must have an AGI higher than the parent in order to claim the child for EITC purposes. If you don’t have a child, you must meet three additional tests:
Credit Limits for 2010 Tax Year Income and family size determine the amount of the EITC. The Earned Income Credit Table, which shows the credit amounts, is included in the Instruction booklet for Form 1040 and in Publication 596, Earned Income Credit. For tax year 2010, the maximum credit amounts are:
Combat Zone Pay Members of the military have the option to include their tax exempt combat zone pay when computing their earned income for EITC. The combat pay remains exempt for federal taxes. However, families should be aware that they must include all of the combat pay or none of it. For example, if the inclusion of combat pay would push a taxpayer’s adjusted gross income above the EITC income limit, taxpayers should leave it out of their EITC calculations. If, however, the inclusion of combat pay would enable a taxpayer to obtain a higher refund, then combat pay should be included. On-Line Tools If you are in doubt about your eligibility, you or your tax preparer may use the EITC Assistant on the IRS website. The EITC Assistant, available in English and Spanish ( Asistente EITC), will help you determine your eligibility by answering a few simple questions. For tax professionals, there is an electronic tool kit at EITC Central. Avoid Common Errors You are responsible for the accuracy of your tax return. The rules for EITC can be complicated, so you should seek assistance if you are unsure of your eligibility. Some common EITC errors are:
The IRS continues to work on ways to reduce these errors. If you receive a letter from the IRS requesting additional information about your EITC, please reply immediately to avoid delaying your EITC refund. If you need assistance or if you have questions, you should call the number included in the IRS letter. Beware of Scams A deliberate error can have lasting impact on your eligibility to claim EITC. Beware of scams that claim to increase your EITC refund. Scams that create fictitious qualifying children or inflate income levels to get the maximum EITC could leave you with a penalty. If your EITC claim was reduced or denied after tax year 1996 for any reason other than a mathematical or clerical error, you must file Form 8862, Information To Claim Earned Income Credit After Disallowance, with your next return if you wish to claim the credit. How to Claim EITC Publication 596, Earned Income Credit, explains the process. The publication is available on this website or by calling 800-829-3676. Publication 596 also is available in Spanish. The Instructions for Form 1040 can help you determine your eligibility. The instructions contain a worksheet and the earned income credit table to help you determine the amount of your credit. If you are claiming the EITC with a qualifying child, you must complete Schedule EIC and attach it to your tax return. Schedule EIC provides IRS with information about your qualifying children, including their names, ages, SSNs, relationship to you and the amount of time they lived with you during the year. How to Get Tax Help Taxpayers can find help in determining eligibility by using the EITC Assistant on the IRS website, available in English and Spanish. Taxpayers who qualify for EITC should explore available free tax preparation services. The IRS provides assistance to low-income taxpayers at more than 400 IRS offices nationwide. We also partner with local community and non-profit organizations to provide free tax return preparation for low-income and elderly taxpayers at more than 12,000 volunteer sites nationwide. Other options include the use of Free File, the free tax preparation and electronic filing program provided by software companies. EITC recipients should remember they can get faster access to their refund by using direct deposit. If you use IRS e-file and direct deposit, you could have your refund in half the time of a paper return. New on EITC Starting in January 2011, taxpayers can no longer get advance payments of the earned income tax credit in their pay throughout the year as they could in 2010 and earlier years. This is because the law has changed. However, this does not affect EITC claims on tax returns. |
Wednesday, February 2, 2011
6 ways to avoid an audit
6 ways to avoid an audit
It may not be due to something you did wrong. It may even be triggered by an IRS error. But there are ways to reduce the chances of getting that dreaded letter.
1. Math mistakes
The biggest reason people receive letters from the IRS is addition or subtraction goofs. Fortunately, math errors rarely lead to a full audit. Still, double-check your math before you send in your return.
And if you receive a letter from the IRS saying you owe money, check your numbers first. Sometimes, an IRS employee misreads one of your numbers, or the number is keyed into the IRS computer system incorrectly. If the agency is wrong, send a letter with a printout of your calculations.
2. Mismatched interest and dividend reporting
If the amounts reported in supporting documents don't match the amounts on your return, you will get a letter.
There are lots of possible errors here. Sometimes, the IRS will enter Form 1099 information (investment, interest and other nonwage income) into its computers and erroneously key in the income amount or the Social Security number of the recipient. If the income isn't yours, get a letter from the bank or other payer and forward that letter to the IRS. If the amount is incorrect, send a copy of the Form 1099 mailed to you by the payer.
3. You're on the IRS hit list
Those who receive much of their income in cash are traditionally on the radar screen of IRS agents looking for unreported income. Be prepared to defend any non-income deposits into your accounts. Recently, the agency has also pinpointed small-business owners and the self-employed. Too many "business" cars were going to campus each September. Be prepared to substantiate your deductions.
4. You have a big mouth
Never brag about how you put one over on the IRS, especially on Facebook. The IRS has been successfully trolling such sites to find unreported income and tax cheats.
Internal Revenue Service whistle-blowers can earn rewards of 15% to 30% of the additional tax collected, including fines, penalties and interest. Scofflaws can be reported by filing Form 211 (.pdf file) or calling the IRS fraud hotline at 1-800-829-0433.
Everyone else: Zip it. Keep your accounting strategies to yourself.
5. You're exceptional
An IRS computer program compares your deductions with others in your income bracket and weighs the differences. This secret IRS formula, called the DIF Score, is used to select returns with the highest probability of generating additional revenue through audits.
Check programs like TurboTax's deduction finder and books like my "How to Pay Zero Taxes" to ensure you're getting all the savings you deserve.
6. You have the wrong preparer
Let's face it: Some tax preparers are less than professional. Some, unfortunately, are crooks. If your preparer promises you a refund before checking all of your paperwork, run as fast as you can. That preparer is going to be taking illegal or inflated deductions, and, when the IRS finds out, you're going to be the one who pays the bill, plus
Colonial Income Tax Preparation Service, located at the gateway of Historic New Castle Delaware can help you with a full range of tax services. Colonial Income Tax Service staff members include a Certified Public Accountant and several tax preparers with many years of experience. Our services include income tax preparation for your Federal and state income tax returns, and assisting you with tax planning opportunities. We also do business returns, including corporations, partnerships, LLC'S and trusts.
The fees we charge vary depending on the complexity of the tax preparation or planning services you need. We believe our fees are both reasonable and competitive for the professional services we provide.
The fee range for our service begins at $100 for Form 1040 with standard deduction, and $250 for a Form 1040, with schedule A - itemizing your deductions, and schedule B - listing your interest and dividends and, state return. Additional forms will increase our time and fee charges.
We offer a $20 discount for new clients and our initial meeting to discuss your needs is FREE.
To begin our service we will interview you using our tax data organizer which lists a host of questions and documents we will need to prepare your return. Based on the interview we can prepare an estimate of our fee charges. You decide whether we proceed with your tax return preparation.
In payment we accept cash, checks, money orders, VISA and MasterCard.
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Subscribe to:
Posts (Atom)