Archive for the ‘Late Taxes’ Category

6 Reasons to Choose the PriorTax CPA Review

Tuesday, April 26th, 2016

With only two certainties in life, nixing your accountant is a tough choice to make.

Choosing PriorTax means you don’t have to.

When telling some people to ditch the accountant and file their taxes online instead, they look at you like you just told them to stop drinking coffee in the morning. It’s scary, sounds risky and is, more than likely, completely out of the question for some.

That’s why PriorTax has introduced CPA Review to the menu, for all of our customers who don’t necessarily want to stray from the traditional route of using an accountant to file their taxes. It also provides a new opportunity for taxpayers who have never even looked into using an accountant before.

Let’s take a look at some reasons why you’ll want to consider our CPA Review over a private accountant.

Because you’re not made of money.

Did you know that the average price of an individual tax return prepared by a private accountant in 2014 was $273? Some charged up to $400 per hour! That’s a nice chunk of change to add to the amount you already owe the IRS (or to take out of your refund check). With the PriorTax CPA Review, you’ll pay $99.95. That’s less than 50% of the average cost for the same service. Crazy, right? (more…)

Do Back Taxes Affect Your Credit Score?

Tuesday, April 5th, 2016

Credit and taxes are both pretty high up there on the adult responsibility ladder.

Putting them together kinda makes you want to hide under a rock. Don’t worry. You don’t need to know everything about credit (or taxes) in order to start taking steps in the right direction. You’ll learn what you need to along the way.

Let’s take a look at some of the initial questions you probably have about your tax debt and how it will affect your credit score.

Will a tax debt show up on my credit report?

Well, it could. The IRS will not automatically run off to the land of credit agencies and warn them about you if you have built up some tax debt over the years. However, if you owe over $10,000 in taxes and continue to do nothing about it, then a Notice of Federal Tax Lien is automatically filed against you. This lien has the potential to be pretty damaging to your credit score it will show up as a ‘seriously negative’ item on your credit report. If this has happened to you, don’t panic and keep reading. We’ll let you know how to remove this from your record and prevent this from happening to you in the future.

Can I remove a tax lien from my credit report?

You have a tax lien. This is a stressful situation, but you can only panic so much. Now you need to take baby steps toward fixing it. To do this, you’ll need to initiate repayment of your debt. Since this can stay put on your credit report up to seven years after the bill is paid, it is important to take action sooner rather than later. (more…)

11 Sensible Ways to Spend Your 2012 Tax Refund

Wednesday, March 30th, 2016

Did you know you have until April 18th, 2016 to claim your 2012 tax refund?

If you didn’t know, then this information might feel a little like finding a $5 bill in an old winter coat. With that in mind, you’re probably thinking about how you can spend it, right? Before I get into the great things you could could put that extra money towards, it’s important to remember that your tax refund is still money that you earned. You’re receiving a refund because more tax was withheld throughout the year than was needed to cover the taxes you owed to the IRS. So depending how your 2012 tax situation shakes out, you might be owed a refund, or you might owe back tax if not enough money was withheld. Given that, you should file any past due tax returns ASAP – especially with the chance to get an unclaimed 2012 refund slipping away soon.

Whether you’re saving or spending, make sure you do it right!

1. Catch up on bills.

Sometimes it’s the little things in life that make the biggest impact. Using your tax refund to stay up to date on monthly bills and avoid late fees and interest is such a great way to eliminate stress. Then you can save up the remainder and put it towards that oh-so-necessary vacation you’ve been meaning to take.

2. Start an emergency fund.

Suppose your car breaks down and insurance won’t cover it. Maybe your boss crunches the numbers and realizes that he can’t afford to fund your position anymore. In a world so surprising, you should always hope for the best but prepare for the worst. This is why setting aside a cushion of savings might be a good idea. Financial experts suggest maintaining a savings large enough to cover three to six months’ worth of household spending. You may be thinking that there’s no way that your tax refund will cover that. Maybe not, but you have to start somewhere. (more…)

Quick Guide: Filing Your Late Business Tax Return

Monday, March 21st, 2016

Mistakes can often be as good a teacher as success.”

As a business owner, you might have already heard this one. Jack Welch, the founder of General Electric, made this statement and although he wasn’t talking about taxes, it applies.

The filing deadline for LLCs is always April 15th. The filing deadline for S-Corps and C-Corps is always March 15th. Sure, missing the filing deadline for your business tax return is a mistake. However, it can be resolved, and with less of a penalty than you may think. You’re constantly learning as a business owner and probably making your fair share of mistakes along the way. Let’s take a look at how you can prevent one of them.

Calculating the Late Filing Penalty

Penalty fees for filing late LLC and S-Corp tax returns are based on how many months you are late to filing and the amount of shareholders or managing members involved. Late filing fees for a C-Corp are based on how many months the return is late. Let’s break it down a bit further. (more…)

Filing a 2015 Tax Return in 2017

Friday, March 18th, 2016

Forget to file your 2015 tax return? Let’s get you caught up.

Sometimes, procrastination gets the best of us and we fall behind. It happens. Most procrastination-fueled situations can be resolved. There’s no exception when it comes to filing your late 2015 taxes.

Can I still file a 2015 tax return in 2017?

April 18th, 2016 marks the tax filing deadline for 2015 taxes . The good news? You can still prepare your tax return after the deadline and mail it to the IRS. The bad news? If you owe additional tax for 2015, you may be faced with penalty fees. If you forgot to file by the deadline, you will be responsible for the failure-to-file penalty. If you didn’t pay the IRS on time, you will be liable for the failure-to-pay penalty. These will be explained further in a few.

Can I prepare my 2015 taxes online?

You missed the filing deadline. That doesn’t mean you have to scrape the bottom of the barrel when it comes to your tax preparation. You also won’t need to dip into your savings to afford it. You can still prepare your taxes online which happens to be inexpensive and pretty easy.

All you need to do is follow these 5 steps. (more…)

Can I Still Claim the Making Work Pay Tax Credit?

Thursday, February 25th, 2016

Tax credits are the IRS’ way of saying ‘Thanks’!

Even if you’re behind on filing past tax returns, it’s important to take your time and file each one accurately. Sure, in some cases you won’t be able to claim your refund after a certain period of time has passed but you can always reduce your tax liability. That’s what tax credits are for.

For the 2009 and 2010 tax years, there was a tax credit known as the Making Work Pay Credit. Did you know that you can still claim this credit on your tax returns for those years? Let’s find out if you qualify.

 

What is the Making Work Pay Tax Credit?

You might remember President Obama focusing in on the Making Work Pay Tax Credit as a key policy of his 2009 stimulus package. It was meant to initiate more household spending among families in the U.S. Well, it stuck…for a couple years at least. The credit was authorized in the American Recovery and Reinvestment Act of 2009. Many taxpayers saw a reflection of this credit as an increase in their paychecks throughout the year.

 

(more…)

Where To Find Your Prior Year AGI

Wednesday, February 17th, 2016

“Why should we look to the past in order to prepare for the future? Because there is nowhere else to look.”

Although this is a quote by a historian who probably knew little about filing a tax return, it is oddly relatable when trying to locate a prior year AGI.  Here’s why. In order to find your AGI (otherwise known as adjusted gross income), you’ll need to take a look at the prior year’s tax documents. I’ve pinpointed three easy ways to find your prior year AGI without having to dig too deep into the past. Let’s take a look.

 

1. Your tax return

If you’re the type of person who has a knack for keeping track of important paperwork, then you probably know where to find your tax return from last year. Once you find it, you’ll be able to find your AGI amount for the year on line 37 of Form 1040, as you’ll see below. (more…)

Can I Still Get My 2012 Tax Refund?

Wednesday, February 10th, 2016

Start your engines! The last day to claim your 2012 tax refund is April 18th, 2016.

Many of us recognize April 18th as the deadline to file our 2015 tax returns. Did you know that it is also the last day to file a 2012 tax return and claim a tax refund?

The IRS has a three-year statute of limitations for taxpayers to collect their refund money. Once those three years are up, all unclaimed refunds land themselves amongst others within the IRS walls of tax years past.

Sorry for the dramatization but it’s true. Why give up your refund to the IRS when you can file your 2012 tax return today and get your hard-earned money back?

 

File your 2012 tax return in a few simple steps.

You only have until mid-April to claim your 2012 tax refund. If you start today, you could have that refund in your hand by the end of the month. It’s easy! Here’s how:

  1. Create an account on PriorTax. Select 2012 as your tax year, create a username and unique password.
  2. Enter your tax information. Once you have your 2012 tax documents handy, we’ll ask all the questions.
  3. Submit your 2012 account. The PriorTax team will review your information and make a pdf version available for you to download.
  4. Print, sign and mail your 2012 tax return. Since you cannot e-file a prior year tax return, you’ll need to mail your return to the IRS.

 

Did you forget what the 2012 tax rates are?

We’ve got you covered. It’s probably been awhile since you’ve taken a look at these. Just to refresh your memory, take a look at the 2012 tax rates below: (more…)

2013 Tax Forms : 5 Reasons You Don’t Need Them

Monday, September 14th, 2015

I forgot to file my 2013 taxes. Should I look for tax forms?

Let’s take a quick detour through a common & unpleasant scenario first:

It’s  January 2016, the best time to buy a new car, and you’re ready to apply for that loan, or so you think. You empty the shoe box and shuffle through your tax documents. That’s when it hits you: you never filed that 2013 tax return! Panic strikes as you try to come up with a solution.

Fear not: there are, in fact, a number of options available, but using forms is taking the slow, not so scenic route.

 

So, doing it yourself with tax forms, pencil and (lots of) erasers? Sure, if you can afford to go slow.

You could complete the 2013 tax forms yourself, right? Well yes, until you remember that you could barely sit through that accounting class you took in college without doodling in the margins of your two-subject Five-Star. Besides, that it’s probably the slowest choice.

 

How about downloading some 2013 tax software? Yes, but… (more…)

Are You Looking for 2013 Tax Forms?

Tuesday, September 1st, 2015

We have you covered: here are all of the major federal tax preparation forms for 2013!

 

1040

1040EZ

1040A

Schedule A

Schedule B

Schedule C

Schedule D

Schedule SE

 

These forms will only cover the requirements of a basic federal tax return. The forms needed for a 2013 state tax return are a bit more tricky to get your hands on. For these, you would have to visit your state’s government website for access to these. 

But wait…. You don’t need any 2013 tax forms if you prepare your return online with PriorTax.

That’s right! Let us help you. Using Priortax.com streamlines the whole tedious job. All you need to do is create an account and start filling in your basic information. It is free to start and as you enter your credentials, we will let you know your refund amount. On top of that, we have a team of tax professionals ready to help you every step of the way via free phone support, live-chat and email.

(more…)