Article Orange » Taxes

Federal Tax Help: Tips to get Professional Tax Help.

wellsonbrowns — Mon, 26 Jul 2010 17:30:40 +0000

Most of the people around the country are paying their taxes in advances to avoid confusions. And also some of the people are also paying their regular taxes before in time.However, still there are some people are not able to pay their regular taxes because of lack of knowledge on getting some professional tax help. In these technology days, everyone able to get these helps from online. According to survey reports, many people are needed to file their taxes late.Due to the late payment of taxes, they need to fill out a federal extension. Filing the federal extension form is a quite easy task of seasoned tax payers, but for those people who are new to the tax still experiencing some issues.For these new people, they do not know where to get these forms and where to file them.To resolve this issue, they need help from a professional tax assistant. However, you will get some experienced help from the internet, thanks to internet.

With the help of online, filing of federal tax extension form is quite easier than before. You need not to travel to more and more offices over any concern to get some esteemed help.There are some well established and well experienced firm are offering some fine help to the valued customer. Some of these organizations are providing telephone services also.And also some of them are having wonderful websites; you can book an appointment from their sites and help also. And also you will get help from email also.If you have any questions regarding federal tax, you can send an email to them, and you will receive perfect solution for your queries.

You need to consider so many things before filing federal tax extension form. You need to check that all the right information you mentioned in that form. If there is any mistake in that form, you need to face a lot of the problems.The IRS will punish with some extra fine and in these financial crisis days, no one would like to pay extra for this tax. The main points you need to consider that there is no refund because of these federal extensions are inaccurate, and they not refund you at any concern. So, it is a better idea that you need to file your federal extension form with the help of some professional assistant, which are available at very cheap. You need to spend few amounts around fifteen dollars to fifty dollars to get this online help.When in comparison with the federal tax fine, it is less than that.

Browns Wellson is a Tax Relief Specialists which help with tax to settle your business today. You can find out if you qualify for a help in tax.

Property Tax in Singapore

johnmedia — Wed, 21 Jul 2010 16:12:12 +0000

A Property tax is a tax levied on properties in Singapore. This includes all types of properties such as HDB flats, factories, offices and vacant land. If you or your business owns property, you are liable to pay property tax.

The amount of property tax you have to pay per year is a percentage of the Annual Value of the property which you own. The Annual Value is the estimated yearly rent the property can fetch if it were rented out. The tax rate for owner-occupied residential property is 4% per year. The tax rate for all other properties is 10%.

Property taxes must be paid by 31st January each year. The Inland Revenue Authority of Singapore (IRAS) will compute the annual tax you need to pay and send you the bill in December. Instructions on how to pay property tax are also included in your bill.

Rebates, Relief, Refunds
In order to help keep taxes affordable, encourage certain types of land development and meet business needs, the Government gives out rebates, reliefs and refunds to property owners. For example, if your property has been continuously vacant for at least 30 days or 1 calendar month because of repairs or the inability to find a tenant, you can claim for a refund of property tax for that period.

Property Tax Exemptions
A building is only exempt from property tax if it is used exclusively:

· as a public place of worship

· as a public school

· for charitable purposes

· for purposes that promote the social development of Singapore

Singapore Tax Article by Rikvin
Apply for a Singapore Entrepass or need a Singapore Company Registration Service? Visit Rikvin.com to learn more

Information for Singapore Company about tax residence

johnmedia — Mon, 21 Jun 2010 16:49:26 +0000

What is a Tax Resident

A company is considered as a resident in Singapore if the control and management of the business is exercised in Singapore. Although the term “control and management” is not defined explicitly by authorities, a generally accepted consensus is that it refers to the policy level decision making at the level of board of directors and not the day-to-day decision making and operations.

What is a Non-resident

A company is considered non-resident in Singapore if the directors manage and control the business and hold board meetings from outside Singapore. This is true even if, for example, the lower level operations are taking place in Singapore. A company’s residence may change from one year of assessment to the next depending on the circumstances. A Singapore branch office of a foreign company is generally not treated as a Singapore tax resident since the control and management is vested with an overseas parent company.

Basis of Taxation
The basis of taxation for a resident company and non-resident company is generally the same with the exception of certain benefits that are available to resident companies.

These include:

· A Singapore resident company is eligible for tax exemption scheme available for new start-up companies.

· A Singapore resident company can enjoy tax exemption on foreign-sourced dividends, foreign branch profits, and foreign-sourced service income under section 13(8) of the Income Tax Act.

· A Singapore resident company is entitled to benefits conferred under the Avoidance of Double Taxation Agreements (DTA) that Singapore has concluded with treaty countries.

A Singapore resident company is only taxed on Singapore-sourced income and foreign income which is remitted to Singapore, whereas a non-resident Singapore company would have to pay tax only on Singapore-sourced income.

Singapore Tax Information by Rikvin Pte Ltd
Singapore Company Registration and Singapore Tax Rates for Companies Service? Learn more visit Rikvin.com

Singapore Personal Income Tax

johnmedia — Thu, 25 Feb 2010 14:56:39 +0000

This guide provides an overview of Singapore’s personal income tax rates, taxable income, capital gains tax and income tax returns filing.

Taxable Income
Any income that is accrued in Singapore by a person or business is subject to income tax. This means that if a customer pays you for your product & services in Singapore, or if you receive money in Singapore from your overseas sales, the money is subject to tax. Taxable income includes: income from your business, salary from employment, interest earned on your deposits and rental income.

Taxation for Foreigners Working in Singapore

Foreign employees working in Singapore either on work permit or employment pass will be taxed as above in Singapore unless:

· The person is on short-term employment no exceeding 60 days in a calendar year

· his/her earnings are exempt from tax under the Avoidance of Double Taxation Agreement

As a tax resident, you will be taxed on all personal income derived in Singapore.
When a foreign employee stops his term of employment in Singapore, his employer is required to inform IRAS before the termination of employment or departure from Singapore. The employer shall also withhold whatever money due to the employee until tax clearance is given.

Central Provident Fund (CPF)
Foreigners on work pass are exempt from CPF contributions in Singapore.

Capital Gains Tax
Capital gains or investment income is not subject to tax. For example, if you buy and sell shares at a profit in Singapore, the profit is not subject to tax. However, the dividends that you earn from the shares is considered an income and thus subject to tax.

Personal Income Tax Rates
The tax rates for YA 2007 and onwards are shown below. Singapore personal income tax are charged progressively (0% – 20%), based on your chargeable income. The chargeable income is your income plus any other personal income, minus all deductions, relief’s and rebates.

Income Tax Returns Filing
It is required that all completed income tax returns forms must be submitted to the Singapore Tax Department by the 15th of April each year. You do not necessarily have to pay your income tax if your annual income is less than S$ 22,000, unless you have been specifically instructed by the Singapore tax department to submit your tax return.

Singapore Tax Article by Rikvin
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Visit http://www.rikvin.com

Singapore Tax Residence Status for Companies

paulmedia — Fri, 29 Jan 2010 23:00:01 +0000

There are many benefits to establishing a company and, more importantly, to be considered a tax resident in Singapore. Singapore, with its sophisticated business infrastructure, has comparatively much lower tax rates than many contemporary developed countries. It has also a large tax treaty network which provides tax reliefs and double taxation of income. It is, hence, an attractive place for foreign investors with investments in the Asia Pacific region, or simply using it as a spring board to expand in that region. Other significant benefits include tax exemption on foreign-sourced dividends, foreign branch profits, and foreign-sourced service income and tax exemption scheme for new start-up companies.

How is Tax Residence Status Determined?

Considering the tax benefits, it is no small matter to obtain a tax residence status. So how does Inland Revenue Authority of Singapore (IRAS) determine tax residence status? In accordance with the Singapore Income Tax Act, the tax residence status of a company is determined based on where the ‘control and management of its business is exercised.’ A company is tax resident in Singapore if the control and management of its business is exercised in Singapore. Consequently, a Singapore branch office of a foreign company is not deemed a tax resident since the ‘control and management’ of its business’ is commissioned by the parent company outside Singapore.

‘Control and Management’

A company incorporated in Singapore is required to draw up a Memorandum and Articles of Association during its incorporation process. The Articles of Association outlines the company’s rules governing the relationship between the directors and shareholders of the company, the organizational structure and the roles of the directors in managing the operations of the company (together with the Memorandum of Association, the Articles of Association constitute the constitution of a company). Determination of tax residence status will be evident if the key decision-making, institution of policies and central management of the company are exercised in Singapore. Company activities in Singapore that include financial management of expenditure and banking, declaration of dividends, appointments of management executives, authorization to use the company’s seal or the ability to call shareholders’ meetings and etc are good indicators of ‘control and management’ within the jurisdiction.

Approving Tax Residence Status

Although IRAS, apart from citation of the Income Tax Act, has no criteria outlined for determination of the tax residence status; however, it is circumspect in examining each application for the Certificate of Residency (COR). A company that applies for a COR has to provide supportive evidence to show that the ‘control and management’ is in place in Singapore for the year that precedes the year of assessment. IRAS examines the status each year to determine eligibility of status. Approval for tax residence status is, therefore, short-lived as It is necessary to prove the ‘control and management’ is exercised the following years.

Companies that are newly incorporated and with 50% foreign ownership, individual or company, are often subject to a closer scrutiny. And this is more so for investment holding companies with no active business activities. Oftentimes, further documentation is required to claim the tax residence status. IRAS can request for Directors’ Report, business plan and a detailed description of roles and responsibilities of the directors. It is, therefore, imperative to keep proper and adequate records of all board meetings. The role of a company or corporate secretary becomes necessarily more important, which should not be overlooked.

With investment opportunities more globalized investors seek for new marketplace and more favorable tax benefits outside of their countries or regions. Even though it has a pro-business policy, Singapore is more conscious than ever that its tax benefits are not liable to abuse. It’s wide tax treaty network signifies greater responsibilities in adjudicating the tax residence status prudently. This will ensure, not only greater benefits for all investors, but also Singapore’s reputation as one of the key players in the global financial community.

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Congress working on tax deduction for Haiti donors

versatile — Tue, 26 Jan 2010 23:52:37 +0000

By NIRVI SHAH
nshah@MiamiHerald.com
Taxpayers may be able to write off cash donations made to relief efforts in Haiti on their 2009 income tax returns.The U.S. House unanimously passed a bill Wednesday that would make donations made after Jan. 11 and before March 1 deductible for 2009.
The goal is to encourage donations beyond the $275 million already given, according to estimates by The Chronicle of Philanthropy.
The Senate is expected to pass the bill as well. Without a change, donations made this year couldn’t be deducted from income taxes until taxpayers file 2010 returns. In 2005, a similar law was created to encourage donations to victims of a tsunami in the Indian Ocean that happened at the end of 2004.
Contributions to U.S.-based, tax-exempt charities that provide assistance to foreign countries can be counted as tax-deductible contributions on federal income tax returns. Donations to foreign organizations generally are not deductible.
Only taxpayers who itemize their deductions on Form 1040, Schedule A, can claim deductions to charities. Regardless of the amount of a donation, taxpayers need bank records or written communication from the charity that shows the date and amount of their gift.
With millions collected by charities via text messages, the House bill specified that taxpayers could use a phone bill as a receipt. Some text donations can be verified with receipts at www.mgive.org/receipt.
Other proposals related to contributions to Haiti include allowing a waiver of the limit on how much of a taxpayer’s income can be deducted in a year — if the donations are cash and specifically designated for Haiti relief. The current limit is 50 percent. A corporation can donate up to 10 percent.
Another proposal is to allow corporations that donate food to relief efforts to deduct the actual market value of the donation, rather than the cost to produce the food.
That tax break expired at the end of 2009.

http://versatiletax.com/tax_preparation.php

New IRS Video Series

versatile — Thu, 07 Jan 2010 20:57:38 +0000

IR-2009-92, Oct. 14, 2009
WASHINGTON — The Internal Revenue Service has launched a new case study and video program to help exempt organizations and their tax preparers better understand the newly revised Form 990 series which must be filed for the 2008 tax year.
The Form 990 series, redesigned for the first time in nearly 30 years, requires more disclosure and transparency by exempt organizations. With some exceptions, organizations that are exempt for federal taxation are required to file the Form 990 information return. The additional information will give the IRS and the public a better view of how the exempt organizations work, especially in terms of expenditures and executive salaries.
To help illustrate key points and answer important questions about the new Form 990, the IRS’ Exempt Organizations Division developed “The New Form 990: Getting Started,” a case study about a hypothetical organization – Exempt Organization for Disaster Relief (EODR).
The hypothetical case study includes a set of facts describing organizational and financial aspects of EODR, and a completed Form 990 based on those facts. A video series walks you through key reporting issues common to most organizations required to file Form 990.
Before starting the videos, people should read the hypothetical EODR case study and review the example Form 990. The series of videos, each between five and ten minutes long, cover a key area of the Form 990, using facts from the case study.
The videos are listed in an order based on the sequencing list found on page 5 of the Form 990 instructions. However, they can be viewed in any order. Included in the video series are:
• Overview
This video is a good place to start for people who have questions about the redesigned Form 990. It looks at some of the key things to consider about the Form 990 and the various schedules that exempt organizations may need to complete, particularly Schedule R.
• Revenue and Expenses
This segment covers two of the financial statement portions: Part VIII, Statement of Revenue, and Part IX, Statement of Functional Expenses. It looks at how to fill out the required columns of information for revenue and expenses.
• Balance Sheet, Supplemental Financial Statements, and Schedule D
This video, reviews Part X of the Form 990, the Balance Sheet, and Part XI, which covers Financial Statements and Reporting. It explains some differences between the redesigned and previous version of Form 990. It also focuses on parts of Schedule D, Supplemental Financial Statements.
• Program Services, Other IRS Filings and Tax Compliance
This video focuses on Part III, which allows an organization to “tell its story” and describe its program services, and Part V, which covers other IRS filings and areas of tax compliance. Part V will alert organizations if they have other filing obligations besides the Form 990 and will help them to determine if they engage in activities that raise tax compliance concerns.
• Compensation
This segment reviews the Form 990 compensation reporting in Part VII. It explains who needs to be listed in Part VII and explains the three types of compensation to report. It also highlights Schedule J, the compensation continuation schedule.
• Governance
This segment describes how to complete Part VI of the redesigned Form 990, which requests information about the organization’s governing body, management, policies and procedures and disclosure practices. It also focuses on Schedule L, which requests information on transactions with interested persons, such as directors, officers, key employees and their family members.
• Summary, Schedules, Signatures
This segment covers Parts I, II and IV of the Form 990—Summary, Signature Block and Checklist of Required Schedules. It also provides an overview of several new schedules to the Form 990.

http://versatiletax.com

Crackdown on Tax Fraud leads to Tax return preparers E-filing your Tax Return

versatile — Thu, 31 Dec 2009 18:04:42 +0000

Tax return preparers will have to pay attention to an amendment added in the Senate version of the Worker, Homeownership, and Business Assistance Act of 2009, which extended the First Time Homeowner Credit and unemployment benefits, because beginning in 2010, this amendment will require tax return preparers to file any individual tax return electronically unless the preparer expects to file fewer than 10 returns in a calendar year. This means that individual tax return preparers will be required to apply for an EFIN, the Electronic Filing Identification Number, which will help the Internal Revenue Service (IRS) to track their returns. The requirement applies to individual tax returns, estate, and trust returns. Note: This new law does not affect 2009 tax returns filed in 2010.

Other amendments tacked on to the bill by the Senate:
• Extend the 0.2‐percent Federal Unemployment Tax Act (FUTA) surtax through June 30, 2011 to pay for the extension of unemployment insurance benefits
• Increase penalties for failure to file Partnership or S Corporation returns from $89 to $195 per month per partner or shareholder effective December 31, 2009. The penalty may also be imposed for incomplete returns of Schedules K-1.

Increase the required estimated tax due from corporations with assets of at least $1 billion due in July, August or September 2014 by 33 percentage points, to 133.25 percent of the payment otherwise due for the quarter. The payment due in the following quarter is reduced by a corresponding amount.

Reports of widespread fraud and abuse in the preparation of tax returns, particularly in regard to the Earned Income Credit and the First-time Homebuyer’s Credit, prompted the IRS to prepare a set of recommendations for Congress and the President to address this fraud. The final Internal Revenue Service recommendations for registration of tax return preparers will be made public in early January, according to the American Institute of Certified Public Accountants (AICPA).

In a video presentation [2] on their web site, Barry Melancon, AICPA president, and Alan Einhorn, chairman of the AICPA’s Tax Executive Committee, review what has happened so far in the discussion of tax preparer fraud prevention, and emphasize that the AICPA supports “a reasonable solution,” but express concern about possible damage to the CPA credential. One part of a “reasonable solution” is a single preparer indentifying number and making all preparers subject to existing penalties under Circular 230, but Melancon and Einhorn expressed concern about other kinds of registration and testing. If Congress votes to create a new certification and exam, Melancon says, “The process would go too far.”

The original version of the Act also permits all businesses, regardless of their gross receipts, to carry back net operating losses incurred in 2009 for up to five years (with a 50 percent income limit in the fifth year).

http://versatiletax.com

Deferred Income May Not Be Preferred-Bush Tax cuts Expiring!

versatile — Thu, 31 Dec 2009 18:00:25 +0000

Alix Stuart, CFO.com | US
December 15, 2009

For executives who have been deferring parts of their compensation, 2010 may be the time to rake in their winnings. While it’s rarely advantageous to pay taxes sooner rather than later, the likely expiration of former President Bush’s tax cuts at the end of next year could make doing so a relative bargain. The top individual tax rate is scheduled to increase in 2011 from 35% to 39.6%, as it was in 2001 prior to the cuts. While Congress could still maintain the lower rates, many think it’s unlikely lawmakers will do so.

“It’s a bit of a twist: people usually try to defer compensation as long as possible, but now you see many evaluating how to accelerate it as much as possible because of the fear the tax situation will become much worse,” says Andrew Liazos, partner and head of the executive-compensation group at law firm McDermott, Will & Emery.

Although many executives have already completed their paperwork giving the go-ahead to deferrals, it may not be too late for them to change their mind and take all of their salary and incentive compensation in 2010. Liazos explains that the elections may not be binding until the last day of 2009, depending on the language of the contract, so they could be changed if necessary.

Some companies are even planning to do away with their nonqualified deferred-compensation plans entirely, in part for tax reasons. While the practice is far from common, at least two public companies — AECOM Technology and Medquist — have taken this step in recent weeks, according to their regulatory filings. Liazos says he is currently working with two companies considering this option.

But the clock is ticking on that decision as well. In order to pay out accumulated compensation in 2010, companies must liquidate the plan (and all related plans) by the end of December, since Internal Revenue Service laws require a lag of at least 12 months and one day between shutdown and payout, according to Liazos.

The main drawback to liquidating the plans is that companies may not establish another deferred-compensation plan for at least another three years, according to IRS rule 409(A). For executives who expect tax rates to remain high, that might not be too high a price.

Public perception, however, may be a larger stumbling block. George Paulin, chairman and CEO of compensation consultancy Frederic W. Cook, says “a couple” of his public-company clients briefly considered such an idea but quickly rejected it. He says executives were concerned that liquidating a plan could send the wrong message: “How does it look if we’re only doing it so that people will save money on taxes?

Link: http://versatiletax.com

Are You Looking For Tax Professionals

wellsonbrowns — Wed, 23 Dec 2009 18:16:37 +0000

If you are citizen of a country or resident alien,the rules for filing income,estate,and gift tax returns and paying estimated tax are generally same whether you are in your country or abroad.Your world wide income is subject to reputed country income tax,regardless of where you reside. The tax preparation industry around the world,has witnessed significant growth over the past few years on account of increasing complexity of the tax code as well as easy availability of the industries services in various locations of the world.

It can be scary when the government contacts you for a tax audit and they are going to look through your files and possibly levy your bank account or garnish your wages.It can be very daunting and we take that fear away because we know the Internal Revenue Service inside and out.

In any country,there are esteemed organizations are providing the help to customers to help in tax.It is their job to protect you during the audit process and inform you of your taxpayer rights as well as the best options for settling your tax debt and IRS problems.It all starts with knowledge,which is so powerful when dealing with the IRS.

Tax professionals are extremely busy during tax season,so check to see if there is a retired tax professional in your church or community who would be willing to donate time to help low income people prepare tax forms.Make sure they are up on the current tax laws and codes.And there is some web sites containing the information regarding this issue.

Once you understand why you need tax help then you can begin to look for someone to help you.If you are just looking for a quick return then try the accounting software that electronically files your return. You should see it within two weeks, possibly faster if you use direct deposit.If you are concerned about understanding the complicated tax codes then you should first seek help from the IRS or another free service and then try a software program.If all else fails look for a professional service.Make sure you completely understand their terms and fees and do not buy into any catchy advertising.

Online Tax Pros offers several options for getting your tax refund fast and easy.Filing online is the fastest way to file your taxes,and you can choose to have the IRS provide your tax refund through direct deposit.

Wellson browns is a Tax Relief Specialists which help in tax to settle your business today. You can find out if you qualify for a Tax help business.