An Employer Identification Number (EIN) is a 9-digit number issued by the IRS for the purposes of identifying a particular business’ tax account. The EIN format is XX-XXXXXXX..
EINs are used by employers, sole proprietors, corporations, partnerships, non-profits, trusts, estates of decedents, government agencies, certain individuals, and other business entities. These entities must provide their EIN on every form/communication that is sent to the Internal Revenue Service (IRS) or the Social Security Administration (SSA).
Note that you should have only 1 (one) EIN for the same business entity. If you do not have an EIN by the time your tax return is due, enter “Applied For” (and the date that you applied) wherever an EIN is requested. Do not use your Social Security Number (SSN) in lieu of an EIN.
Taxpayers who owed additional tax when they filed their 2017 federal tax return earlier this year can avoid another unexpected tax bill next year by doing a “paycheck checkup” as soon as possible, according to the Internal Revenue Service.
The Tax Cuts and Jobs Act, the tax reform legislation passed in December, made major changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the Child Tax Credit, limiting or discontinuing certain deductions and changing tax rates and brackets.
These far-reaching changes could have a big impact on the tax refund or balance due on the tax return people file next year. The IRS encourages every employee to do a “paycheck checkup” soon to ensure they have the correct amount of tax taken out of their pay.
Checking and adjusting withholding now can prevent an unexpected tax bill and penalties next year at tax time. The IRS Withholding Calculator and Publication 505, Tax Withholding and Estimated Tax, can help.
The IRS encourages taxpayers to be proactive:
With hurricane season underway, the Internal Revenue Service is reminding taxpayers that criminals and scammers often try to take advantage of the generosity of taxpayers who want to help victims of major disasters.
Hurricane season runs June 1 to Nov. 30, and taxpayers need to be vigilant of scams that will undoubtedly pop up when and if a hurricane occurs during that time.
Fraudulent schemes normally start with unsolicited contact by telephone, social media, e-mail or in-person using a variety of tactics.
Donate to real charitiesTo help taxpayers donate to legitimate charities, the IRS website, IRS.gov, has a search feature, Tax Exempt Organization Search, that helps users find or verify qualified charities. Donations to these charities may be tax-deductible.
2018 brings DRAMATIC changes to federal tax law, so we are providing a review of these changes well in advance of tax return time. As always, please be in touch with any questions about this, or any other tax matters.
Income tax brackets have changed. The old 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% brackets have been restructured to 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These new percentages are slated to apply through 2025.
Read on to discover the taxable income thresholds for these brackets in 2018:
Tax credits, deductions and savings plans can help taxpayers with their expenses for higher education.
IRS Options If You Cannot Pay Your Taxes
Although the IRS always prefers that you find a way to pay your taxes in full, circumstances can sometimes prevent that from happening. If you find yourself in this predicament, the IRS does have options available to help you resolve your tax debt. Depending on your situation, you may be able to request an installment agreement, an offer in compromise, a temporary delay of collection, or an extension of time to pay.
Obviously, the best solution for past due taxes is to pay the entire debt as quickly as possible. Remember that penalties and interest will continue to accrue until your balance is fully paid – the IRS does not necessarily waive these late fees, even if you set up an approved payment arrangement.
In some cases, it is actually more affordable to pay your tax debt using a personal loan or credit card(s), which often charge lower fees than the IRS.
The form of business you operate determines what taxes you must pay and how you pay them. There is a lot of tax information to know and understanding all of the details can get tricky so we suggest you let PK Tax Services help you. The following are the five general types of business taxes.