If you’re a business owner or entrepreneur, you want to have a good understanding of how S corporations save small business owners tax. Accordingly, the paragraphs that follow describe the big benefit of an S corporation (which is that an S corporation minimizes employment taxes). But the paragraphs … [Read more...] about How to Save Taxes with an S Corporation
Taxes
Where Can I Find Free Tax Forms?
You can get most federal tax forms from the Internal Revenue Service’s web site, www.irs.gov. Just be sure to grab the right year’s version of the form. For example, if you’re filing your 2004 individual tax return, use the 2004 version of the 1040 form. Similarly, if you’re … [Read more...] about Where Can I Find Free Tax Forms?
Maximizing the Washington State Sales Tax Deduction
Though the deduction is often renewed on a year to year basis, the sales tax that Washington state residents pay can be often claimed as an income tax deduction if the taxpayer itemizes his or her deductions. For example, in 2009, 2010 and 2011, Washington residents can use state sales tax as an … [Read more...] about Maximizing the Washington State Sales Tax Deduction
Setting Salaries for S Corporation Shareholder-Employees
If you’ve done much research on the subject of S corporations, you’ve probably already learned that S corporations may allow shareholder employees to save significant amounts of payroll tax. During the 2004 presidential election, for example, the Wall Street Journal reported that the Democratic … [Read more...] about Setting Salaries for S Corporation Shareholder-Employees
Responding to an Internal Revenue Service Letter Audit
Taxpayers commonly receive letters, sometimes known as “correspondence examinations” or “letter audits” but also referred to as “CP 2000 notices,” from the IRS demanding additional tax. For this reason, I want to talk briefly about why taxpayers receive these threatening letters and also about … [Read more...] about Responding to an Internal Revenue Service Letter Audit
State Income Taxes
Washington businesses and residents frequently find themselves filing income tax returns with other states. For example, someone who moves to Washington state during the year will typically owe the state they moved from a part-year resident income tax return. But even long-time Washington … [Read more...] about State Income Taxes