Hello,
I am a canadian resident who will be working on a consulting contract in the US (NYC) under the TN status.
I share an apartment in Quebe...
Hello,
I am a canadian resident who will be working on a consulting contract in the US (NYC) under the TN status.
I share an apartment in Quebec with my girlfriend but will have to rent an apartment in NYC as I’ll be working from there.
Questions:
1) Given I will be working in the US, will I be paying US or Canadian taxes? I can start in late June or July, so have the option of being 6 months + 1 day in either country: does it changes the answer, if so, is US the best option?
2) As a consultant, I can get tax deductions for my business expenses. Does that apply to
- apartment rental in NYC if I’m working at the client (in full as an hotel would be or only fraction e.g. my office)?
- travel to Canada (as I have a residential tie over there), I intend to fly back every other week
The federal tax on the tax and Medicare taxes are part of the tax on wages. In this article gives a brief introduction to each of these leaders are payroll taxes.
The federal on
The federal tax is part of the monthly income of each person who is paid by the employer to the government. The Government in turn uses the per share amount through the federal prosecutor to fund programs and initiatives of national interests and security. Government programs that are funded by federal tax laws are, National Defence and community development.
The Prosecutor of the Federation is not a predetermined percentage of the income of an individual. The percentage of monthly income is income derived Monthly total of an individual. There are many sites that have online calculators to determine the percentage of federal income tax to deduct from your monthly income.
It is a very good idea to be aware that the actual percentage of their monthly income deduct federal taxes, which will help to determine if the correct amount should be deducted. This would prevent you from unpleasant surprises at the time of filing your annual income tax or other part of being a victim of excessive federal tax deduction.
The service payroll tax administration uses the Form W-4 must be completed by all employees as required and the certificate of withholding relevant used to achieve the percentage of federal taxes withheld from workers' incomes. If the federal tax has been deducted Unpaid State not There is no risk by the employee. However, it is advisable to keep documentary evidence that draft is not that you should receive an incorrect Form W-2 your employer. Form W-2 is the annual statement issued by employers to all employees and provide details the total annual income earned by the employee and the portion of income that has kept the federal tax and other tax wages.
The social security tax
retirees in the country, people with disabilities Physical and their dependents are insured by the government with the benefits of using Social Security contributions to be deducted from the monthly salary of each individual. Unlike the federal tax, social security contributions is a standard percentage of annual income of an employee. Although the percentage of social security taxes will be deducted from an employee's income is capped at 6.2%, there is an additional limit the maximum amount that can be deducted from the income of an individual to social security tax.
Medicare Tax
Medicare tax is a deduction of 1.45% of personal income provided that the government funds to provide medical assistance to retirees over the age of 65.
About the Author
Go to Free Legal Forms site, and you can find many free legal forms and resources including Financial Forms that you can use for your own financial matters, protecting your assets.
Whhhhhhhhhhhhhhhhat site shows that payroll taxes are taken on certain services such as FICA?
one that shows the percentage of taxes the government takes for me to calculate the money to pay social security contributions? a show not to exact percentage of the actual amount left, and how fica take, example, do not go out of 6% or 10%?
FICA is 7.65% of the IRS Circular E also has all the details – www.irs.gov
Need a game that we will refund? A tax preparer, IRS can do the work of Canadians
Obtaining recoverable game U.S. simply became easier
If you are a Canadian money to U.S. you can be terminated without notice and without paying U.S. tax gambling. Taxation of United States wins the game near its marginal tax rate maximum. Unfortunately, the vast majority of U.S. and Canadian accounting and law firms are not as methods to obtain a refund Part of the United States.
What a way 1042-S?
If you are one and granted an IRS Form 1042-S, means that Canada took the IRS 30% of its original jackpot game, and you are eligible a refund of play the United States. Form 1042-S is issued by the U.S. Internal Revenue Service United States Non-residents when subjected to withholding tax of 30%. Sometimes, the Form 1042-S is issued for the rental income, as many Canadians invested in U.S. real. Casinos goods are required by law to issue the Form 1042-S S. Canadian players U. higher price a fixed monetary value.
The search service reimbursement management
The U.S. government authorized a number of small professional services firms to act on behalf of Canadian clients. This entity is known as a "certification officer acceptance "and act as an IRS tax preparer in Canada. In addition to being approved by the United States, Canadian tax preparer IRS (Certification Officer) is well versed in U.S. tax law and has the ability to obtain a refund of play U.S. Internal Revenue Service. Navigating the various codes and IRS forms is a task formidable, but, fortunately, a Canadian tax returns IRS can do the job.
How Canadians eligible for U.S. tax refund of game?
The Treaty U.S. Tax States and Canada that Canadians deserve the same treatment as American citizens to the United States taxes. U.S. citizens are taxed on their profits betting but are also allowed to deduct gambling losses of profits from their paris. Most of the winners of the game may deduct all or least some of their gambling losses, so the tax burden is considerably reduced.
What are the methods used by compounders Canadian Tax IRS?
A tax preparer Canadian IRS generally uses a two step process reimbursement for the U.S. game. The IRS preparer gets the first Canadian U.S. ID individual income tax for the customer. In general, it will take six to eight weeks. Then, on the basis of the tax treaty with the United States to Canada, a tax return is submitted on behalf of Canadian customer. The repayment management services (ie services provided by the Canadian tax preparer IRS) usually takes three four months.
About the Author
Lucky Larry is a Canadian accountant. In his spare time, he dabbles in low roller Las Vegas gambling and has received his share of form 1042-S. Lucky Larry tries to find as many financial shortcuts as possible, and has discovered the intricacies of the Canada-US tax treaty and how it entails Canadian gamblers to securely pursue a US gambling refund of their US gambling taxes.
I have a question on income tax in Canada?
Does anyone know how many years can re-claim medical expenses the limitation on income tax in Canada. I've never been accused of pocket my tax. I have health insurance that covers 80% but 20% paid out of pocket and I'm only now discovering that these costs could be claimed. How far back can I go?
You can file a medical claim if paid within three years before the first date of notification of the assessment for you, it is ie the normal examination of an individual. Claiming beyond three years, you need an excuse, that circumstances beyond their will, for example, that you are on extended sick leave, natural disasters had lost his medical records, etc. Another possibility to claim a tax in excess of three years is that the tax base for the year prior to zero, and has not sought a determination "loss" of the CRA tax. Note also that, in his "unclaimed" 20% in 2007, medical expenses, medical expenses totaling more than $ 1,926, or 3% of their net income lower.
When approaching tax season, the fact of the anxiety felt by taxpayers and taxes. Everyone wants to ensure they are minimizing the amount of taxes payable. Although stress can not be completely eliminated in most cases, you can be a great relief. A sure way to reduce stress-related tax must be prepared, to keep your books in good condition throughout the year, and to keep informed of any changes in tax laws and deductions. These deductions for the year 2007 include:
• The Child Tax Credit (CTC) – This new non-refundable tax credit of $ 2,000 can be claimed for each child less than 18 years.
• Child Tax Benefit (CCTB) – A tax-free monthly payment designed to help families with the cost of education children. The basic benefit is $ 1,283 a year per child under 18 years ago costs $ 90 for children over the third and each. However, as the increase household income decreases the CCTB.
• Children's Fitness Credit – Credit limit is $ 500 to cover the registration fee for each child under 16 who joined a program approved at any time during the year.
In 2007, there were two federal budgets, and Following a series of changes to federal tax and benefit programs have been announced. Some points Highlights of the view that taxpayers should be aware of before tax season this year are:
Splitting pension • • Increase the age limit for RRSPs 69-71 • The new child tax credit (see above) • Plan Registered Disability Savings Plan • Investment Tax Credit for child care spaces • Increase Lifespan Capital gains exemption 750K to 500K • Working Income Tax Benefit • Reducing the GST to 5% effective of January 1, 2008 • The lowest rate of tax on personal income has been reduced to 15% from 15.5% • basic personal amount has increased to $ 9,600 for 2007 and 2008 and $ 10,100 for 2009.
For Quebec, the provincial budget of 2007 has been launched with a series of tax changes and the provincial government benefit programs administered by the Inland Revenue of Quebec. These changes include:
• Increase the refundable tax credit for home support services for the elderly • Tax Credit refundable to encourage savings (RESP) • Transfer of the unused portion of the deduction for tuition • Increase tax credit for retirement income of $ 1,000 to $ 1,500
Many find that the process of preparing and filing your tax overwhelming, and for these people, the best advice I can give to seek the advice of a professional whose job is to keep abreast recent changes in tax laws. An accountant is trained on the best way to reduce their tax burden or increase your refund, while reducing the stress of tax season.
About the Author
Remo Milone, CRM is a Senior Associate at Milone and Associates and is a Registered Candidate of the CGA Order. For more information on tax filing or to download a simple checklist for personal income taxes, and for other important deadlines, please visit his website at =>http://www.milone.ca
tax credit Canada child question?
Why not take advantage of child tax your child when they reach 18, however, you are still financially responsible until they are 19
When you’re looking for help buying or selling property, it’s important to remember that the terms “real estate agent” and “Realtor” are not synonymous.
Realtors can provide an extra level of service and to be a Realtor you must be a member of the Canada is the Canadian Real Estate Association (CREA). A Realtor has earned a strong reputation for actively championing private property rights and working to make home ownership affordable and accessible. CREA members adhere to a strict code of ethics founded on the principle of providing fair and honest service to all consumers.
Realtor business practices are monitored at local board levels. Arbitration and disciplinary systems are in place to address complaints from the public or board members. This local oversight keeps Realtors directly accountable to the individual
consumers they serve and therefore the consumer is more likely to find better service and
accountability by using a Realtor.
MISTAKE #2. COMPLACENT MARKETING WHEN SELLING A HOME
When selling your home there are no guarantees that the ultimate buyer of your home will have simply walked through the front door. In many cases you may have to bring your home to the buyer.
Effective marketing will help ensure that your property receives maximum
exposure to attract a ready, willing and able buyer in the shortest period of time.
Ask your Realtor to list for you all of the ways he/she intends to market your home and on what time-line. Also, be sure to ask about the home being advertised on the Internet.
MISTAKE #3. TAKING FOR GRANTED THE “CURB APPEAL” OF YOUR HOME
When you’re preparing your house for sale, remember the importance of first impressions.
A buyer’s first impression can make or break whether they even want to go inside for a look. It is estimated that more than half of all houses are sold before the buyers even get out of their cars. With that in mind, be sure to stand outside of your home and take a realistic “fresh look” and then ask yourself what can be done to make the “curb appeal” improve. Also ask your Realtor’s opinion as to how to improve the curb appeal. It could make a huge difference in your final sales price.
MISTAKE #4. FORGETTING ABOUT HEALTH AND SAFETY ISSUES
Be up front and disclose to your Realtor any problems with the property.
The problems are going to be discovered anyway. A decade ago, health and safety issues were rarely a part of the typical real estate transaction. Today, however, it’s common for inspections relating to health, safety, and even environmental concerns to be a part of most sales contracts. Moreover, in many provinces, the seller must disclosure to the buyer any knowledge of existing property problems. In many cases, these issues have been or can be factored into the home’s listing price.
MISTAKE #5. THINKING YOU NEED TO BE IN THE HOME TO EXPLAIN THINGS TO A PROSPECTIVE BUYER
You will be better served if you allow your Realtor to do their job without you there.
Most potential buyers usually feel more comfortable if they can speak freely to the real estate professional without the owners being present.
If people unaccompanied by an agent request to see your property, you should refer them to your real estate professional for an appointment.
MISTAKE #6. FORGETTING WHAT YOU WOULD WANT TO SEE IF YOU WERE THE BUYER OF YOUR HOME
Remember that although people can be different in personality, they tend to be the same
when it comes to expectations at someone else’s expense. In other words, a prospective buyer would probably like to see a perfect home from top to bottom, inside and out, when it comes to your home. Try to do as many of the following items as possible to improve the likelihood of your home sale in an expedient way.
On the outside
1) Sweep front walkway.
2) Remove newspapers, bikes and toys.
3) Park extra cars away from the property
4) Trim back the shrubs.
5) Apply fresh, clean paint throughout.
6) Clean windows and window coverings.
7) Keep plumbing and all appliances in working order.
Maintain all sealant (window, tub, shower, sink, etc.) in good condition.
9) Make sure roof and gutters are clean and in good condition.
10) Mow the lawn frequently and plant flowers.
11) Keep pet areas clean.
On the inside
1) The kitchen and bathroom should shine.
2) Quick once-over with the vacuum; carpets should be clean.
3) Place fresh flowers in the main rooms.
4) Put dishes away, unless setting a formal display for decoration.
5) Make all beds and put all clothes away.
6) Open the drapes and turn on lights for a brighter feel.
7) Straighten closets.
Put toys away.
9) Turn off television.
10) Play soft music on the radio/stereo.
11) Keep pets out of the way and pet areas clean and odor-free.
12) Secure jewelry, cash, prescription medication and other valuables.
13) Enhance the spaciousness of each room.
MISTAKE #7. NOT KNOWING HOW TO PRICE YOUR HOME TO SELL
Perhaps the most challenging aspect of selling a home is listing it at the correct price. It’s one of several areas where the assistance of a skilled real estate agent can more than pay for itself.
Listing the home too high can be as bad as too low. If the listing price is too high,
you’ll miss out on a percentage of buyers looking in the price range where your home should be.
This is the flaw in thinking that you’ll always have the opportunity to accept a lower offer. Chances are the offers won’t even come in, because the buyers who would be most interested in your home have been scared off by the price and aren’t even taking the time to look. By the time the price is corrected, you’ve already lost exposure to a large group of potential buyers.
The listing price becomes even trickier to set when prices are quickly rising or
falling. It’s critical to be aware of where and how fast the market is moving – both when
setting the price and when negotiating an offer. Again, an experienced, well-trained agent is always in touch with market trends – often even to a greater extent than appraisers, who
typically focus on what a property is worth if sold as-is, right now.
MISTAKE #8. NOT PLANNING YOUR MOVE EARLIER ENOUGH
Many sellers simply don’t plan their move early enough and then feel totally overwhelmed at the time of moving out of the house. If you are able to move at any time of the year, don’t wait until summer, the peak-moving season.
Consider also that the first and last few days of the month are extra busy. If you plan to sell your house, get it on the market as soon as possible. Keep a record of all expenses related to the move, some of which may be tax deductible.
MISTAKE #9. NOT LISTINING TO THE PROFESSIONAL YOU HAVE HIRED TO SELL YOUR HOME! You’re not a Realtor, you may work in a factory, you may sell cars, you might even be a doctor… But the one thing you are not is a PROFESSIONAL REALTOR.
About the Author
United Pro Media! Does anyone know about this multi-level marketing company. Risks? Safe? Any info please?
This is a new venture in to western canada. I am told it is big in the USA and eastern canada. It is multi-level marketing, looks kind of like a pyrmaid, but am told it is not. It is investing in a company and their advertising market. You do not sell the products, but promote them and in turn you then have a home based business and therefore tax deductions. If anyone is familiar with this or has any information on United Pro media it would be appreciated
www.scam.com/ this web site gives info on most scam when i search that’s where I end up
Setup a small business in Canada for young entrepreneurs
The creation of a small business in Canada requires determination, motivation, morale and competence in the company.
The following steps should be followed from the start with small businesses.
Identify your business opportunities: the best deals for different options. It is important to find the will to lie in order to understand their own personality.
Prepare a business plan: a business plan is a business plan for business, you can better understand the domestic industry, competition and capital requirements. Business Analyst notes that the income of the business plan of 50% over a non-profit and non-design companies. Write a business plan is a good deal.
Make money Start: To start a business business is. Top funds for each company is different, depending on the institution. Finding the money can be the source, never thought. Canadian sources funds are:
Business Loans Program for Small
It will help you with financing needs. This program, the Canadian government to help small businesses obtain loans from financial institutions to subprime lenders. The field program works as follows:
– Who is entitled to: Enterprises that may be useful in cases of gross sales of five million U.S. dollars or less.
– Who is eligible: those who are not covered by the Canadian small business financing program is a peasant organizations, non-profit, Charitable Trust, and organizations religious.
– How much money is available?: Up to $ 500,000 in funding for more than $ 350,000 could be used to purchase or lease of improvements to leased property purchase and improvement of new and used equipment for improvement.
– How can I borrow?: You must apply for a loan from the bank. If the bank decides to grant you a loan which is registered in Industry Canada. The list of donors include ATB Financial, Bank of East Asia, Bank of Montreal, the Caisse populairesAcadiennes, caisses populaires in Ontario, Credit Unions of Canada, Canadian Imperial Bank of Commerce, the Bank of Canada West, Financial Services GE Capital, HSBC, Laurentian Bank of Canada, Mouvement des Caisses Desjardins Canadian National Bank, Royal Bank of Canada, Scotiabank, TD Canada Trust.
Company Name: What is the name of the company? Finding the right name, which is independent of its competitors, giving customers reasons to hire you, and to support the company brand. Learn what you must know the name of your company find.
Choosing a Business Structure: End of the corporate structure is an important decision no action be taken lightly. If you choose a popular limited liability company (LLC), one of the owners or limited liability companies, the choice will affect the responsibility of your company, the Fund's assets for the two taxes. It there are many entrepreneurs who lose everything, because not their business. This article will help you on the path of those who need to install the Setup for small businesses in Canada.
Okay … I am officially confused. I paid only EI / CPP of my control and never been so since I'm at school. So now that I finished university, I am trying to calculate my salary … including deductions, so I found a simulator run by the Government … but I'm still officially confused. Then someone if you please help me? 1. What are the deductions actual EI and CPP / Book The federal and provincial tax (1.4%, etc.) 2. When I entered as an amount of $ 2800, which ended with the federal and provincial taxes $ 412.66 Tax $ 199.42. ! Really? 3. If I work "too" hours not to raise taxes tons?
calculation of the CPP was still [raw - ($ 3,500.00 / pay periods per year)] times 4.95%. Thus in a semi-monthly check of $ 2000, the calculation would be as follows: [2000 - (3500/26)] * 0.0495 (2000-134.62) * 0.0495 * 0.0495 = 1865.38 $ 92.34 EI is the same speed in all provinces except in quality control. 1.73% remains as it was in 2009 and 2008 well. Again … salary in the $ 2,000 would be $ 34.60 T4032 form shows the tax rate (fed and prov) I added a link so you can choose your province. federal charges (probably in all provinces) are as follows: – 15% of taxable income $ 40.970 or less – 22% of taxable income exceeding $ 40,970 and less than or equal to $ 81,941, but on the basis of my province (British Columbia) for an example: – 5.06% on taxable income exceeds $ 35,859, – 7.70% of taxable income exceeding $ 35,859 and not exceeding $ 71,719, more … to receive $ 2000 would be about $ 440 and $ And yes …. 154 if it works "too many" hours … increase their taxes to make tons. If you choose to work 20 hours more … their Taxes are calculated as if it were their normal pay, you get every time throughout the year.
Jack Layton on Corporate tax cut and EI Payroll tax increase
Go to the casino can be fun and exciting. It may be more exciting when you're in your winning streak. However, emotion can be bitter accusations knowing that nearly thirty percent of the IRS to take part in the game tax revenues. This may be disappointing, but the taxes withheld may be repossessed by the IRS as a tax refund.
The United States and Canada income tax treaty
Tax refunds do not apply only to residents of the United States. An agreement between Canada and the United States with respect to gains tax. The treaty between the two countries reflects the way income tax casino must be treated by Canadians. He said that thirty percent shall prevent the citizens of Canada on the basis of their gross gaming revenues. Added this privilege is Article XXII of the Treaty, stating that Canadian residents are taxed by the United States is also entitled to deduct losses of its U.S. source wages against their U.S. source. This simply means that Canadian residents can obtain a tax refund in Casino profits tax withheld.
Taxes on gambling
Casino win tax depend primarily on the amount earned, the type of casino gambling and the relationship between the amount of profits to the amount set. Meaning, even if you have won in a casino, you will not be automatically withheld thirty percent tax on profits of gambling, always depends on the relationship between profits and losses. There are cases where paris total exceeds the total profits, so if you look at the situation, there really are no winners who will be affected by taxes in the first place. However, some such situations, the IRS still requires a report on the income derived therefrom to determine how the game much more gains taxes charged.
The need to inform
There is responsibility to declare a winner and that the benefit, but it is for the IRS to determine whether benefits should be charged with casino tax revenue. It pays to be a diligent taxpayer and be responsible enough to report even the minimum profit. Enter the amount of profits does not mean you have to pay taxes. The amount to pay taxes on gambling winnings can also be reduced over gambling losses deduction detailed reports on Form 1040. The losses may be as much as the amount of earnings so that No more need to be charged with taxes on casino winnings.
Getting help
Often, the taxpayer may be mistaken in reporting gains and losses in the game with the IRS. Although in cases like this, everything is done good faith is possible that you may have trouble with the government for not being able to reflect the correct amount of taxes on casino winnings. To resolve problems of this kind, all need is to seek help from professionals. There are sites that can certainly be able to provide clarification and assistance as needed. It is best to get all the help, especially completing tax forms to save you problems and questions later.
How to submit a tax return income tax treaties with the United States and Canada?
I am a Canadian working in the U.S. In 2007, more than 183 days. I wonder if there are any individuals to file income taxes in Canada and the U.S. side? If anyone has experience as before, please share with me. Thank you PS: In my opinion, to file taxes in both countries in the normal forms, then claim the credit foreign tax. This approach is correct or any other stuff.
Start by reading Publication 519. If 2007 was his first year in the United States, it is probable that must produce a situation of "double" return. An example in the publication. The dual performance target is to try to exclude any Canada Revenue before (if this is your first year in the U.S.) or after (if this is his last year) of your stay in the United States. By its exclusion, it is necessary in 1116 a means of avoiding double taxation.
Tax Shelters in Canada 1 – Income tax act and the CRA
There was a time that the person had to bring out the old receipts for the entire year and then use a pencil, a calculator and paper when preparing the federal income tax report. After double-checking the figures, the document is finalized and then filed on or before the deadline.
These days, there is a faster way of doing it and this involves the use of the computer. The individual will just have to get the tax preparation program to be able to finish this faster than before.
Individuals who want to get the software can either buy the program or get one that is absolutely free. Here are a few examples of those that are available.
1. The first one is called Turbo Tax. This is only free if the taxpayer is only earning a gross income of $50,000 or in the military service. Those who are earning more can still use the program but will have to pay close to $40.
This can even be used for small business tax preparation. The person can buy the CD or download this from the web. If this is going to take awhile to finish, the information can be saved so this can be continued later on.
2. Tax Act is another software program. The eligibility requirements in order for it to be free are the same as Turbo Tax. Those who choose to use the deluxe or ultimate version will have to pay to be able to use it.
3. Next is Tax Slayer that can be done online or downloaded into the person’s computer. This company has been providing this service since 1992 and has made the program available to the public since 1998.
This can be used when filing for federal and state tax returns, which includes all the necessary forms. After submitting this online, a copy can be printed for reference.
4. Tax Cut can also be used when filing the federal income tax. This is user-friendly and works just was well as the others ensuring that there are no mistakes when this is ready to be submitted.
A consumer report shows that 53 million people last year used free or paid federal income tax software programs in filling the return before submitting this to the government. This number is expected to increase next year as more individuals are beginning to realize that this makes the job easier at no extra cost to the taxpayer.
It takes so much to build a business and so much more to make it a real success. They say that you have to be really cut for it in order to make it in any business venture because while some get lucky, businesses are all about time, effort and a whole lot of strategy.
When one has a business, one will realize that while it is primarily about gaining as much profit as you can there are many other things to take care of to ensure the continuing success or existence of your business.
Some of the factors that you have to look into are taking care of your employees after all employees are your real worth. It is only when you have the best employees can you assure yourself that even if you are not around to check on them everyday, your customers are safe in their hands.
Also, while you want to keep the profit all to yourself, there is a need to allocate to your human resources and other needs like marketing efforts perhaps to increase sales but more importantly you have to make sure that you are paying business income tax. Yes, the more your business earns the more business income tax you have to pay.
So just think of it this way, the more business income tax you pay the more successful you are. For sure there will always be that desire to cheat your way into paying lesser business income tax than you should really be paying. Most business owners even justify this by saying that there is no way they can earn if they pay the right amount of business income tax.
Bear in mind that the government tries to be fair in imposing business income tax. Read through the many laws about business income tax or if not look for a friend who is knowledgeable in tax laws so that you will be properly informed. You never know, there might be legal ways for you to contribute less business income tax.
In terms of preparing your business income tax, you can scour the net or ask around other people who have experienced filing a business tax for the correct business income tax software. The business income tax software will make it easier for you to go through the process of filling in details and finding out the precise amount of business income tax you have to pay.
I have been sent a notice under Section 221(1) of the Income Tax Act What is the implication?
U have made a default in tax Payment and the penalty has been levied on the arrears of U R tax and U have failed to give the explanation required to be given by U. Penalty is equal to the tax arrears payable.
Even if U have not made the advance tax payment in time also it was default U have to give the explanation If U fail to give explanation to the requirement then U have to pay the Penalty.
The below is the sec 221 of Income tax act it will give U the required explantaion
Penalty payable when tax in default.
221.[(1) When an assessee is in default or is deemed to be in default in making a payment of tax, he shall, in addition to the amount of the arrears72 and the amount of interest payable under sub-section (2) of section 220, be liable, by way of penalty, to pay such amount as the 73[Assessing] Officer may direct74, and in the case of a continuing default, such further amount or amounts as the 75[Assessing] Officer may, from time to time, direct, so, however, that the total amount of penalty does not exceed the amount of tax in arrears :
Provided that before levying any such penalty, the assessee shall be given a reasonable opportunity of being heard :
76[Provided further that where the assessee proves to the satisfaction of the 77[Assessing] Officer that the default was for good and sufficient reasons78, no penalty shall be levied under this section.]
79[Explanation.For the removal of doubt, it is hereby declared that an assessee shall not cease to be liable to any penalty under this sub-section merely by reason of the fact that before the levy of such penalty he has paid the tax.]
(2) Where as a result of any final order the amount of tax, with respect to the default in the payment of which the penalty was levied, has been wholly reduced, the penalty levied shall be cancelled and the amount of penalty paid shall be refunded
Ron Paul: “Income Tax = Involuntary Servitude” – 4/13/2009
You need to avoid errors on your tax return and IRS problems, so select your tax preparer wisely.
The following factors can help you select a tax preparer:
Know the service fee. Don’t hire somebody whose service fee is established on a part of your claim or refund.
Find stability. Find a tax preparer who’ll stick around after April 15 and will be able to answer inquiries from you or the IRS if they arise.
Examine the tax preparer’s references.
Research Check with the Better Business Bureau to see if there were any complaints against the tax preparer. Also know if the tax preparer is affiliated to any organization.
Check their credentials. If you need help at an IRS audit or appeals hearing, only lawyers, CPAs, and enrolled agents can represent you.
In your meeting with the tax preparer, he will want to look over your records and receipts. Questions about your deductions, expenses, and income will be asked. They need to warrant the accuracy of their work, be able to make corrections if a mistake is uncovered, and be willing to help you at an IRS audit.
Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel’s Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He teaches attorneys, CPAs and Enrolled Agents in the finer aspects of IRS representation all around the United States. He can be reached at his website at http://www.getIRShelp.com
By law, the tax preparer must sign the return and fill out the preparer area on the form. Note that you are responsible for the accuracy of the information reported on your tax return, even if a tax preparer prepared it. That means it is vital for you to review your return before you sign it. Make sure that all information are right. Do not ever consider signing a blank return and always sign in ink. File a copy of the return for your files.
Accounting help please?
1.The amount of federal income taxes witheld from and employee’s gross pay is recorded as an
a. payroll expense
b. contra account
c. asset
d. liability
2. Which of the following would be used to compute the federal income taxes to be withheld from and employee’s earnings?
a. FICA tax rate
b. wage and tax statement
c. wage bracket and withholding table
3. Payroll entries are made with data from the
a. wage and tax statement
b. employee’s earning record
c. employer’s quarterly federal tax return
d. payroll register
Any help will be gratly appreciated
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