The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017 (due to the 15th falling on the weekend and Patriots Day holiday on Monday).
If you need more time to file, you can apply for an extension. An extension gives you time to file but does not extend the deadline to pay back taxes if you usually owe.
For more information click the link below!
The IRS and state governments are combating identity theft and tax fraud this tax year. Beginning this filing season all tax payers are required to have identity verification. Please include with your tax documents a copy of your state driver’s license or other state ID. If you’re married, both individuals must meet the requirement.
As a courtesy, BYB has placed all current clients on an extension. If you are on an extension, the IRS gives you up until October 15th to file tax returns. Please drop off your tax information as soon as possible any day Mon – Fri before 5:00 PM. We would like to get these returns completed as soon as possible to avoid any penalties.
IF YOUR TAX RETURNS HAVE ALREADY BEEN FILED PLEASE DISREGARD
If divorcing or recently divorced, there’s much to consider:
- Name Changes
- Spousal IRA
- Child Support
- Alimony (Paid and Received)
Through changes in circumstances, be prepared to pull out your check book and negotiate with your former spouse. There are many more challenges to finalizing the divorce.
For more information click here!
If you are self-employed, one advantage is the ability to employ family members.
This summer save on taxes by employing your child under the age of 18.
Your children are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child.
For more information, refer to the “Covered services of a child” section at IRS.gov
Miscellaneous Income should be reported. Payments for services performed for your trade or business is reflected on form 1099-Misc.
If the following four conditions are met, you must generally report a payment as nonemployee compensation.
1. You made the payment to someone who is not your employee;
2. You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
3. You made the payment to an individual, partnership, estate, or in some cases, a corporation; and
4. You made payments to the payee of at least $600 during the year.
For more information, click the link below to read more!
Reporting Payments to Independent Contractors
A few of our clients have fallen victim to fraudulent phone calls received by scammers impersonating to be Tax Agents.
These callers are calling in attempt to steal your money. They will call with variations of IRS issues and even show up on the caller ID as the IRS. They will either claim that you’re due for a huge refund or you owe the IRS money. They threaten that legal actions are in place and demand immediate payment.
Don’t be fooled! If you receive a phone call, do NOT give out any information and hang up immediately. The IRS does not call, certified mail is the most common form of communication.
For more info, read what the IRS has to say below.
IRS: Phone Scams
Several different things can alert the IRS to issue an audit. Keeping your books and records in order can help to avoid a stressful situation. Making large charitable contributions and failing to report all of your income can trigger an audit.
If you have multiple sources of income it can become hard to keep track of all the income year earned, and the more likely you are to leave out a payment. To avoid missing a 1099 keep track of all work you complete and the agreed payment. Not getting a form is not an excuse for not reporting the income.
Read more by clicking link below:
Things That Could Trigger an IRS Audit
When the IRS processes your tax return and approves your refund, you can see your actual personalized refund date. Even though the IRS issues most refunds in less than 21 days after we receive your tax return, it’s possible your tax return may require additional review and take longer.
Track your Refund Here!