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If a tax payer is unable to file the tax returns on time, he can request IRS to give tax extensions. The most appropriate extension time is six months. The IRS gives an extension from April 15 to October 15. The tax payer must understand that there is a time limit for requesting the tax [...]
The IRS facilitates the tax payers to pay their taxes even after the deadline for the submission of taxes has been missed by the individual, business or estate by obtaining an extension. If you are able to successfully obtain the extension then you will not have to pay any penalties for late tax submission. [...]
There are different ways through which people dodge paying employment taxes. Following are few of the most common ways: Pyramiding This is a method through which business withholds taxes from employees, but do not pay them to the IRS. Such businesses avoid paying taxes to IRS by filing bankruptcy, in this way they are able [...]
If your business is located in one state and all your employees are resident of the same state than your tax withholdings are simple and easy. Your state income tax withholding obligations will be relatively straightforward. The income tax withholdings become complex when your operations expand beyond the borders of a single state. You may [...]
Those employers who are working in a state which has income tax have to pay both; state and local payroll tax withholding. Employers who are working in a state with an income tax have payment and reporting state tax obligations. Multistate employment withholding may be governed by reciprocal agreements between states. In addition, several states [...]
What is a IRS Direct Tax? As the name suggest, direct taxes are those taxes which are directly imposed on the person. Such taxes are directly paid by the person on whom the taxes are imposed. Unlike indirect taxes, they cannot be shifted on anyone else. Three basic advantages of Direct Taxes Advantage no. 1: [...]
The IRS states that the employer and the employee should take the responsibility of paying taxes. According to the law, the employer is supposed to hold tax of the employees from their paychecks. The employees should allow the employer to deduct the tax from their salary. It is the responsibility of the employee to pay [...]
If you are married, here are some tax tips which you will find useful: Did you know that your anniversary date matters? According to the rule of U.S. Supreme Court the tax date which the married couple should remember is Dec 31. The Tax Department considers you married for the whole year even if [...]
Instruction No. 1: Adjust Your Withholding Once you tied the knot, it is important that you file your tax returns as a joint entity. You need to adjust the tax withholding from your paychecks. You need to determine the number of allowances you will get, it is your personal decision that how do you divide [...]
Most people have a misconception that married couples have to pay higher taxes than the single tax payer. What they fail to realize is that there are many instances where you get a marriage bonus if you know the right details of tax returns. Marriage penalty Marriage penalty means that a married couple pays more [...]
