The IRS Audit Blog

Posts Tagged ‘estimated’

Question: Does the IRS send out a form if you already paid quarterly taxes in 2008?

I can’t remember if I made a quarterly payment or not for Q1 of 2008. My bank doesn’t return canceled checks to me and they don’t have images online. I thought perhaps the IRS might send out an official form in Jan (2009) saying if I had made any quarterly payments. Thanks

Answer: Hi you are expected to keep a record but you can call the IRS at 1-800-829-1040 they might be able to help.
For the future you can try Uncle Tax: http://www.UncleTax.com you will be able to file all you late and current tax returns here and they will answer all questions you have. I use this online service to do my taxes and I can always go back to them for any questions, Good Luck

Synopsys Posts Financial Results for Fourth Quarter and Fiscal Year 2010

MOUNTAIN VIEW, Calif., Dec. 1, 2010 /PRNewswire-FirstCall/ — Synopsys, Inc. (Nasdaq: SNPS), a world leader in software and IP for semiconductor design, verification and manufacturing, today reported results for its fourth quarter and fiscal year 2010. For the fourth quarter of fiscal 2010, Synopsys reported revenue of $375.5 million, compared to $338.3 million for the fourth quarter of fiscal …

Health Care: Tanning Excise Tax-First Quarterly Payment Due Nov. 1

Question: Underpayment tax penalty in 2007 and 2008 estimated tax??

We had a one-time situation for our 2007 taxes which led to an underpayment tax penalty and we were given forms for our 2008 estimated tax payments (above our normal deductions). If we know for a fact that we will not be in the same situation for 2008, can we just not make those estimated payments? Are they just guides or will the IRS actually expect those estimated payments and penalize us if we do not?

Answer: No! The ES coupons are automatically generated by the tax software and assumes that your income will be the same. If your income is less, you won’t owe the taxes and don’t need to make ES payments. Your tax preparer probably just included them with your tax return stuff. (We sometime do that too as a precaution.)

The rule to be “penalty proof” for 2008 is make sure you have paid/withheld 100% of of the 2007 liability or 90% of the 2008 liability. http://www.irs.gov/taxtopics/tc306.html

Two sentenced for income tax evasion

A local businessman and his wife were recently sentenced in U.S. District Court for income tax evasion.According to information provided by the U.S. Department of Justice, Albert Berrettini Jr., 59, and Mary Ann Berrettini, 60, were each convicted of f

Self Employment IRS Income Tax Rate Information & Help 2009, 2010

Question: IRS Estimated Tax…Line 1 Adjusted Gross Income…Does it include expenses?

On Form 1040 ES, the quarterly estimated tax form for the IRS, I have a question about Line 1…the “adjusted gross income” I expect for 2008.

How do I estimate it? Do I just take the number I made to date and multiply by 4? I made tons of money in January, but I can’t estimate on that explosion of money because it’s just not coming at that rate anymore…

Where do I include my expenses?

What should I specifically do so I only have to pay 110% of last year’s income quarterly instead of 90% of this year’s income quarterly?
And if I’m self-employed…do I include ALL my self-employment income on line 1? And then I list that same income again when I do the estimated self-employment tax?

Answer: You estimate it as if you were doing your taxes:
1. What do you expect your total income (from all sources) will be?
2. What do you expect your total adjustments to income will be?

That’s your expected AGI for 2008.

Another way to do it is to start with your 2007 taxes. Use that as your estimated 2008 income (and tax liability). Since you can re-estimate this quarter-by-quarter, you’ll know what your next estimated quarterly payment should be based on the income you earned in that recent quarter. (Since taxes are a pay-as-you-go system, as long as your quarterly payments match are in synch with your income, you’ll be OK with the IRS.)

Tax Basics for Startups

Part one in a three-part series to help get your business started on a strong foundation.

How to Complete a 1040A Tax Form : 1040A Adjusted Gross Income Tips

Question: How do I calculate estimated tax taking into account the recent tax reduction?

Does the 2009 Form 1040-ES (http://www.irs.gov/pub/irs-pdf/f1040es.pdf) reflect the changes that were just passed by Congress after Obama become President? If not, how do I correctly calculate the estimated tax that I should pay according to the newly past legislation?

Answer: I always stick with the standard “100% or 110% of LAST year’s tax liability rule” and just bank any extra as needed if the projected tax liability appears to be exceeding that amount. If it comes in a little lower, I just roll the excess over to the next year to reduce the minimum required payments next year.

If it looks like income (and therefore the tax liability) is dropping precipitously I cut the quarterly payments as needed to meet the 90% rule for the current year.

Unsigned legislation never enters into the fray.

Weeding out the bad

New Yorkers who get paid to prepare other New Yorkers’ income tax returns are facing two new layers of government regulation designed to weed out the unscrupulous and the unskilled among them.

Tax Tips: Estimated Tax Payment

TaxWatch: Tax moves to make in January

The tax laws are still in flux. We’re waiting for the estate-tax law to be written, and Form 5405 for the home-buyer’s credit isn’t ready yet. To top it off, IRS started the year by announcing a major step-up in enforcement of tax preparers. This is going to be an interesting tax season. Are you ready?

1022-WEI #3—Mastering the Uniform Commercial Code with forms-MANUAL