Phoenix Arizona CPA | Arizona Tax Accountant | Arizona Income Tax

Early in the year, the Inland Revenue Authority of Singapore (IRAS) laid their hands on the tax evaders. Those got questioned, investigated have to pay the authority the tax shortfall due to under declaring income. To add icing to the cake, they are ordered to pay huge fine as a penalty.

Among those got caught admitted outright that they reported their “estimated” income as they find it difficult to keep proper records. The tax authority checked and agreed that they are not genuine tax evaders but “they had not been keeping proper records.” Read the rest of this entry »

For many people, life’s routines are perceived as a matter of endless work to earn that weekly or bi-weekly pay check to continue paying off monthly debts. At least, that’s how it feels. In reality, though, we work to earn money as a means to an end; basic living. Being able to eat, care for one’s family, maintain a home, and care for the needs of others are some of the most critical concerns of life. Unfortunately, even addressing these basics all require money, so we work long hours. Read the rest of this entry »

The IRS apart from being in charge of pursuing tax collection also takes care of enforcing the internal revenue laws and the internal revenue tax code.

It is always preferable that you are acquainted with at least the basics of Internal Revenue Tax Code since it is always helpful in the long run. The US tax code is known as the Internal Revenue Code of 1986. The Code is complex and sometimes difficult to understand for most of us. The complexity of the code stems from two major factors, firstly the code is generally amended often with new regulations and rules and secondly the use of the tax code for purposes which are not for raising revenue, for which it is meant for in the first place. Read the rest of this entry »

There’s no arguing that taxes on social security are incredibly high. As a matter of fact, according to current tax law, up to 85 percent of a person’s Social Security income is taxable when their total threshold income exceeds a set limit. What is threshold income?

Threshold income is the government’s formula for determining how much of a person’s Social Security is taxable. It is calculated by adding half of a person’s Social Security income with any other income they may have. The following threshold limits determine how much of a person’s Social Security is taxable: Read the rest of this entry »

It is every company, business and income earning individuals wish to pay lesser tax on the income earned.  However, paying lesser tax and tax evasion is separated by a thin border, which can be costly if not dealt with carefully.

Big organization engaged experienced knowledgeable tax professionals to work out the company tax liability. These professionals take into account all deductible expenses, capital allowances, etc, in a legitimate manner to achieve their objective, pay lesser tax. On top of it, the organization employs accounting professional to maintain the transaction records of the business, detailing every sales, purchases and expenses. These records enable the auditors and tax professionals to accomplish their objective. Read the rest of this entry »

Assets with finite lives lose their value over time. Land is the only asset that is not finite. For all other assets, firms depreciate their value, that is, they attribute the historical cost of the asset over its useful life (the number of years that the asset will be used).

At the end of each fiscal year, firms subtract depreciation claimed to that date from the historical cost of the asset, which results in the asset’s current book value or market value. At the end of the useful life of the asset, the portion left that has not been depreciated is the salvage value of the asset if it were to be sold. Read the rest of this entry »

After many years of having the “tax day” creep up on me, I have finally found a few great guidelines to handling the last minute rush.

1) GATHER THE FORMS YOU NEED. You can get them off the Internet at http://www.irs.gov/formspubs/index.html. Or you can go to the post office or, if you are using Turbo Tax, the forms are supplied with the program.

2) GET ALL YOUR PAPERWORK TOGETHER IN ADVANCE. This includes W-2 and 1099 forms. If you have not received them by January 31, call your company. Don’t forget to save a copy for your files. Read the rest of this entry »

A tax write off is the same thing as a tax deduction, and if you don’t know what expenses are legitimate deductions on your tax return, you won’t know what you can legitimately write off either.  In the case of tax write offs, what you don’t know can be very painful indeed.

Tax write offs are taken by business owners and are items which in normal circumstances might not be allowable deductions but become so when the situation of a business changes. Read the rest of this entry »

The Tax Code Reads as Follows:

Any United States person who has a financial interest in or signature authority, or other authority over any financial account(s) in a foreign country is required to file a Report of Foreign Bank and Financial Accounts (FBAR), if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year.

A potential nightmare all begins with Line 7 of Schedule B. Read the rest of this entry »

You hoped it would never happen to you, but it has.  You’re in trouble with the IRS, and despite all the nights you’ve stayed up until dawn trying to rearrange your finances so that you can pay them what they want; despite cutting back on all the spending, including the groceries–which wasn’t hard because you have no appetite any more; and despite doing your best not to sink into full-blown depression, the problem isn’t going away.  You need a favorable tax resolution, but you have no idea where you can turn to find it. Read the rest of this entry »