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Loss Carry Back Option for Small Businesses

Teena — Fri, 14 Aug 2009 13:33:42 +0000

The deadline for expanded business loss carry back option for small businesses , to be included in the recovery law, is nearing. Corporations that are eligible have time till September 15th while individuals have till 15th of October.

Through this program, the small businesses have an option to regain some cash if for the loss occurred in 2008. The prime criteria is that, the businesses should have met profit in the previous years. Due to the limited availability of time to avail this offer, small businesses should not waste any more time in this regard.

This program could be ideal for businesses that met a huge loss during 2008.The following are the benefits to be earned by the small businesses if they opt for this program:

1) The loss could be offset against income earned for the duration of previous five tax years.

2) Receiving refund for taxes paid 5 years ago

3) Can make use of this option and recover the loss rather than waiting to apply for returns in future.

The process could be accelerated by filing the Form 1045, which is an application for tentative refund. Corporations could do the procedure by filing form 1139., which is a corporation application for tentative refund.The procedure takes up to 45 days to be completed. For the forms and more details on the special carry back program, visit the official website of IRS.

Owe Money to IRS? – Tax Tips

Teena — Wed, 12 Aug 2009 14:51:24 +0000

It is a well known fact that majority of American citizens receive a handsome amount as refund each spring, but there are also people who owe money to IRS. Here are some tips exclusively for people who fall under the latter category.

1) If you receive bill from IRS demanding to make payment for late tax along with the penalty and if you are not in a position to remit the entire amount, its better to take a loan and get done with it rather than making payments in installments.

2) It is possible to make the payment using your credit card. Visit IRS.gov for whom to contact with this regard.

3) The interest rate while you pay through a loan or credit card is lower than the interest worked out by IRS as penalties.

4) The penalty owed could also be paid by cheque, electronic transfer or money order.

5) It is also possible to request to IRS for arrangement of payment in monthly installments. In order to avail this facility, all your returns must be filed and tax estimations must be up-to-date.

For more details, visit the official website of IRS.

IRS FBAR FAQ

Teena — Sat, 13 Jun 2009 09:14:23 +0000

In an announcement today, IRS officials stated that they taxpayers can now depend on the defined “United States person” status as put forward earlier in an instruction to the FBAR form for determining eligibility rules.

This is applicable to the taxpayers who are nearing the 30th June 09 last date for filing the FBAR form.

This is a welcome move as new instructions issued last year aroused confusion among taxpayers as to who should file the revised Form TDF 90-22.1 (Report of Foreign Bank and Financial Accounts/FBAR).

Taxpayers can now depend on the previously issued instruction defining a “United States person” as

(1) Citizen/Resident of U.S.,

(2) A U.S. based domestic corporation,

(3) A U.S. domestic Estate/Trust.” or

(4) A U.S. domestic partnership.

Requirements and Instructions for filing the latest version of the FBAR form (last revised in October 08) still hold good. The latest version should be used for filing the FBAR form this year. This would affect only those tax payers who would be filing the FBAR form on 30th June 09. IRS would soon issue additional guidelines on the eligibility requirements for filing FBAR in the years to follow.