It’s summertime!? And taxes are the last thing on your mind, but now is actually the BEST time to think about doing a tax projection.
If you have self-employment income, had a job change, got married, have multiple sources of income, or just want to see where you stand, you’ll find a tax projection to be very helpful.
Our firm offers a tax projection service for a nominal fee that helps clients make adjustments on their payroll withholdings and their estimates based on their projected tax liability.
To get started, just?complete our tax projection worksheet (Projection Form- 2012 SS) and return it to our office with most recent copies of your pay stubs.
Any questions? Call us at 781.938.0045.
Have Foreign Accounts?? Your FBAR Filing ?is due 6/30/12 for individuals and businesses with foreign accounts worth more than $10k at any point during 2011.
In Part One, we reviewed the Common Law Rules and evidence for determining if a person providing services is an employee or an independent contractor.
Let’s look at the most common forms and documentation you might run into:
After reviewing the three categories of evidence, if you are still unsure if a worker is an employee or an independent contractor, the business can file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding (PDF) with the IRS. The form may be filed by either the business or the worker. The IRS will review the facts and circumstances and officially determine the worker?s status.
Be aware that it can take up to six months to get a determination, but a business that continually hires the same types of workers to perform particular services may want to consider filing the Form SS-8 (PDF).
Plan B: Complete For Your Records Only
Instead of sending this form to the IRS and then waiting six months to hear back, it’s not uncommon for people to complete the Form SS-8 as a way to facilitate a conversation between the employer and the worker, and help both parties decide how to most appropriately classify the worker.
If you feel that you should have been paid as an employee versus a contractor, there is a second option available to you. You can complete and attach a Form 8919 to your federal tax return. You should be aware that submitting a Form 8919 with your taxes will most likely cause the IRS to contact your employer. According to the instructions:
Purpose of form:
Use Form 8919 to figure and report your share of the uncollected social security and Medicare taxes due on your compensation if you were an employee but were treated as an independent contractor by your employer. By filing this form, your social security and Medicare taxes will be credited to your social security record. For an explanation of the difference between an independent contractor and an employee, see Pub. 1779, Independent Contractor or Employee
April 17 is the deadline for filing your personal tax returns.? If you need to file a Partnership or Fiduciary return,?it’s due today as well.
One more week to send in your efile forms before the tax filing deadline!
Make sure to bounce them over to your accountant as soon as possible!? Hop to it!
If you feel like you can’t get your taxes done by the deadline, make sure to file an extension (IRS Form 4868 http://www.irs.gov/pub/irs-pdf/f4868.pdf).
The extension is also due by April 17, 2012 but can be a life saver if you’re missing vital information to complete your return.
If you’re a Schwartz & Schwartz client, please call the office?as soon as possible and we’ll help you file your extension form.