Tax Tips
These tax tips, from KNR’s tax accountants and the IRS, will give you the information you need for some of the most common tax problems. We’ve included some basic information about tougher tax issues, such as IRS tax debt settlement help, and IRS audits, but we seriously recommend that you contact our tax accountant professionals for sound advice on dealing with these tax problems.
Tax Tips #1 Keeping Good Records
Keeping track of receipts and other records will help you avoid a big headache at tax time. The IRS recommends that you keep all records that have an impact on your tax return, such as:
- Bills
- Credit card and other receipts
- Invoices
- Mileage logs
- Canceled, imaged or substitute checks or any other proof of payment
- Any other records to support deductions or credits you claim on your return
Hold on to these records for at least seven years. In case of an IRS audit, you’ll have the documents you need to justify your deductions. If you have additional questions about records you should keep, call your KNS tax accountant at 408-531-0277.
Tax Tips #2 Quarterly Estimated Tax
Failure to pay your estimated tax over the year’s quarters can result in stiff penalties from the IRS, an IRS audit, and can leave businesses scrambling for funds to pay at tax time. The general rule is that if you expect to owe more than $500 in taxes for the year, you should make quarterly payments. Your KNR tax accountant can help you decide if and what you should pay.
Tax Tips #3 IRS Tax Debt Settlement Help
If you owe significant tax debts, you need IRS tax debt settlement help. The IRS’s only interest is getting payment of the debt. Before you agree to any payment arrangement, contact KNR first. Our financial professionals are experts at getting you the IRS tax debt settlement help you need, and we’ll help you find a solution that is in your best interest.
Tax Tips #4 Tax Requirements Relating to Independent Contractors
Many small businesses utilize the services of independent contractors and are required to file certain forms, such as Form 1099. To determine whether you’ve hired an independent contractor or an employee, read the IRS’s Independent Contractors vs. Employees.
