Simply Junior

What Is The Change?

The Ga Department of Revenue has proposed a change to Regulation: 560-3-2-.26 “Electronic Funds Transfer, Credit Card Payments, and Electronic Filing” that, if approved, will have a dramatic effect on virtually all small businesses operating in Georgia.

The essence of the proposed rule lowers the threshold at which businesses must submit tax payments electronically. That threshold was $10,000 for all tax payments made prior to January 1, 2007. It has been $5,000 for all tax payments made after January 1, 2007; but, it gets progressively lower over the next two calendar years.

Here’s the change. “Beginning January 1, 2010, all taxpayers owing more than $1,000 in connection with any return, report, or other document pertaining to sales tax, use tax, withholding tax, or motor fuel distributor tax shall pay any such tax or liability and all future payments to the state by electronic funds transfer using the ACH debit or credit method even if some payments for those tax types subsequently fall below $1,000.”

Oh, and the threshold goes down to $500, beginning with payments due January 2011 or later.

What Does It Mean?

It means that, going forward, business taxpayers will have to begin making electronic payments of all tax types, if any of their tax payments are greater than $1,000 (beginning January 2010) or $500 (beginning January 2011). And, once you cross that threshold, you have to make ALL subsequent payments electronically.

This eliminates the notorious “float” of several weeks that it normally takes the GA DOR to process checks. It removes flexibility in filing early, but sending payments later. It gives the department access to your bank account.

What Should I Do About It?

I would recommend that you work with a tax preparer, who can offer filing services, and who can warehouse your payment until the very last possible day to process it, in order to avoid late payment penalties and interest. Remember, that in Georgia, you have until the 20th of the month to file the previous month’s Sales and Use tax return – but only until 3 PM on the 19th of the month to pay the amount due.

I’m a sales tax guy, so I think in terms of Sales and Use tax, primarily, but the other tax types are in play as well. If the 20th falls on a weekend or holiday, you really only have until 3 PM on the Friday BEFORE the 20th to make your payment.

Most other states (and I file sales and use tax returns in 45 of them) allow the due date to slip back to the Monday or Tuesday AFTER the due date, if the due date falls on a weekend of holiday. Even those states whose due dates fall on the last day of the month allow the due date to slip to the Monday or Tuesday afterwards in this case.

I’m still unsure as to why Georgia is the only state that I am aware of with this rule in place, other than to speed up receipt of funds.

Under the current system, if you file a sales tax return in Georgia and mail it on the 20th, you can almost certainly count on two to three weeks “float” time before you check is processed. I track the checks I mail for my clients monthly, and find this to be pretty accurate. Under the new system, this all goes away.

I’ll give credit to the policy makers at the Georgia Department of Revenue, though. They have finally carried through on a pledge that the State Revenue Commissioner made when he was appointed in 2003, that being to require as many taxpayers as possible to file and pay electronically.

So what is in store for us with the IRS tax return in 2011? Why is it a concern, the tax cuts that were made in 2009 are coming to an end. If nothing is done a lot of taxes could go right back up including estate taxes. So there is a lot of worry if Congress will renew the tax cut laws?

Changes for the Tax Preparer

Also another thing that is going to be changing in the IRS tax return this year is for the tax preparer. There are going to be some requirements if you are going to be a return preparer, and apply for compensation for it. The new requirements require all be screened to be a tax return preparer. In screening they must do they following:
- Be registered
- Be tested
- Have follow up with continuing education

This is helping protect the people from fraudulent tax preparers that are out there online since so many are filing online these days. There really is no license needed to be a tax preparer, which is kind of scary considering our finances, are in these people’s hands.

Also starting in January of 2011 it is going to be required by some IRS tax preparers to file electronically only and the paper mail in format will no longer be used.

Debt Indicator Removed

Starting in 2011 the IRS has stated that this year’s IRS tax return the Debt indicator will be no longer used. The Debit Indicator was used in finding out your refund. Now with e -filing for your tax return and the turnaround being so quick there really is no need for the service any more thanks to electronic filing. You can file your IRS tax return online and get your refund within ten days. So there really is no use for the Debt Indicator any more.

Fist Time Home Buyer Credit Sill Available

The first time homebuyer credit is still going to be available this tax return season. The deadline has been extended till September 30 2010 so you if you are in a binding contract it has to be finalized by September 20 of 2010 for you to be able to apply it on your 2011 IRS tax return.

New Tax Forms

New tax forms are going to be rolling out this IRS tax return season as well. This coming IRS tax season businesses will have to fill out a 1099 if they have payment purchases of at least $600. It is also going to be required that firms that deal with credit or debit card payments will have to send their client and the IRS a form every year that states the transactions of the year. This is all to crack down on businesses that possibly do not pay what they owe by not reporting all income.

Nowadays, the internet has definitely become an indispensable element of all kinds of business across the globe. At the final period of the tax season, all earners highly consider the official procedure of income tax return filing a priority. While a number of taxpayers have found it trouble-free to file income tax returns, there are still those others who really feel perplexed and experience a very hard time to do so.

Moreover, for an individual in a particular job having no assets at all, income tax return preparation will become a lot easier. At this time, services such as e-filing and online software and e-filing provides for tools that can definitely facilitate taxpayers by making their tasks easy, accurate, and fast. One best option is IRS’ Free File program that facilitates taxpayers in the preparation and online filing of their tax return for free. They can resort to online tax preparation and e-filing services in order to make their task completely easy. To do this, one can check out the IRS site so as to decide on an official IRS company or one can simply just look for it in the major search engines. Now if a taxpayer has knowledge on tax laws and is familiar with the preparation of income-tax-return file, then he or she can certainly do it himself or herself with the aid of online professional tax software.

Furthermore, several benefits are available in using the internet as a means of tax preparation. After you have successfully entered the necessary information, the accurate computations are prepared by the built-in system. The related work will be completed online either sitting at home or office within few hours. For individuals who prefer to pay their taxes without having to consult accountants, online tax preparation is an advantage. Even professionals use this e-filing service because this software is certainly well-suited with most accounting software and also facilitates the importation of data from anyplace for tax purposes. Too, this can help you save time. These comprehensive tax payment solutions are provided both for the individuals and organizations. They are utterly efficient for filing income tax returns. Then again, for some people, these are merely easy-to-use tools of tax preparation and filing.

When choosing for the best online tax preparation, one must ideally consider certain factors. There are absolutely several tax preparation software companies having customer service departments where they provide for online or offline (on the phone) support to their customers. But before you come to agree to their terms, you must check out first whether it is entirely free to access.

See to it that the software you will have chosen is specifically essential to a situation. For example, those people who are self-employed will have to file their taxes in a different way and thus they must have an online tax program, focused toward their specific needs. With this, you have to look for tax preparation software online which incorporates all the necessary features you call for at a price that is within your reach.

And finally, you must carefully read the print to ensure that the tax software remains up to date along with the tax laws ensuring that your return holds on to the latest standards. The ideally right online tax software for taxpayers is the one which completely provides the personal circumstances of the taxpayers in order to give them the most comprehensive and precise tax return and also provides them the utmost tax refund.

E-filing has the potential to make tax returns enduring and easier on the nerves of taxpayer at the end of every financial year. It is safe, easy and perfect procedure of electronic filing or submission of Income Tax Return through online software. E-filing is the best and fastest way to file tax returns because it manages data for immediate transaction in less than 20 minutes.

There are a lot of benefits of online filing for tax Returns.

You will be surprised to know the pool of benefits which you can enjoy by e-filing your tax returns online. Let us now make out a list of some advantages of e-filing.

One of the major benefits of online filing is direct submission of data about tax returns to IRS. The chance of errors in calculation goes down because of the various tax preparation software used by service providers for e-filing. Online filing provides double-checking of all the information mentioned in forms. In case of any mistake you will receive message about error for correction. So, the e-file submitted to the IRS assures the accuracy of all calculations.

You can save money by online filing of tax returns because tax software has made the process easy and cost effective while tax professionals charge large fees for form filling.

E-filing is an automatic and totally computerized process which helps you to submit your income returns very fast, just in less than 20 minutes and enables you to get a quick and perfect refund with in two weeks. If you forget to file your return until the last moment of submission and get late for the preparation of tax calculation and documents, in this critical time e-file helps you to avoid late file penalties by providing service 24 hours a day; 7 days a week.

Your personal and financial information are safe and secure because during process of e-filing of tax returns, your data is saved into a file format which has privacy certifications prescribed by the IRS. E -filing provides you complete security and you do not have to worry about your tax returns being lost in the post.

Filing returns manually is a long process which involves filling up many pages of tax forms. These tax forms are usually received through e- mail. If you are failed to get the forms, you have to collect the forms themselves by standing in long queues to file on time. The process is time consuming and sometimes can be delayed due to errors in calculations and information. In spite of manual filing, E-filing on the Internet enables everyone to create e-file with computer and an internet connection in easy and systematic way.

The first step of e-filling is to create an account with a user name, and password. After account creation, the system will show you different forms which you have to fill in. Every step consists of some guidelines which help you what to do from start to end. Always be careful about credibility issues of web site because online filing involves submission of highly sensitive information through a public network. It is better to contact on the numbers mentioned on the site and ensure that nothing is suspicious about the site.

Online income tax preparation provides a safe, easy way to file your taxes. According to the IRS.gov official website, electronic filing (e-file) has been an accepted way to file by the Internal Revenue Service (IRS) since 1986. Some accountants have been using this method to file for their clients for more than two decades. Between the IRS and many innovative tax services, online tax filing has now been streamlined to accommodate the needs of individuals and businesses. Let’s take a look at five major benefits of filing your taxes online.

1. Saves Time and Money for Everyone Involved

Online income tax preparation saves time and money for you, the online tax service, and the federal and state government. You’ll save time because you can fill in your information using an online form or through e-file software without hand writing all your information. Even if you opt for paid assistance with your online tax filing, you won’t have to visit a physical accounting office to achieve this task. You can save money by paying less for online services, or you might be able to take advantage of free e-file services available through the IRS via many online tax services. You can also receive your refund much faster by filing electronically….usually within a couple of weeks if there are no complications. You can opt for direct deposit of your tax refund into your bank account for faster payment.

Filing electronically saves time and money for the IRS because there’s less paperwork when taxpayers use this method. Tax preparers also save by providing online services. They can work primarily through e-mail, thus, reducing in-office appointments. Some accountants only offer services through the Web, so they don’t have the typical overhead expenses of operating a physical office.

2. File Your Income Taxes from the Comfort of Your Own Home

Another benefit of online tax filing is you can file your returns directly from your home computer. This provides a great convenience if you have a busy schedule or usually work long hours. You can fill in your tax information through e-file forms any time, day or night, without missing a day of work or wasting a Saturday just to prepare your tax returns. Whether you use e-file software, an online free e-file service or opt for other paid tax services, you’ll be able to take care of all your filing needs from home or the office.

3. Reduce Errors when Filing Your Own Taxes

We can all make mistakes – even on important tax forms! Online income tax preparation can reduce errors because paid or free e-file forms will calculate your mathematical totals for you. Online e-file forms will catch other errors as well and prompt you to correct them before moving forward with the form submission. This also reduces errors on the IRS side, which can easily occur as the taxpayer information is keyed into computer systems from handwritten forms. After all, the person keying in the information is human, and not everyone has very neat handwriting! Less errors means less of a chance for an audit and quicker processing of your tax return.

4. Get Help for Complicated Tax Needs

Online income tax prep is not only for simple filing, but can also be helpful for complicated tax needs. If you own a business and need paid tax services, many online tax companies provide an array of services to cater to your needs. Get help with business expenses and mileage deductions, corporate tax needs, home or business tax credits, and more. If you usually work as an independent contractor, an online tax service can help you maximize your tax benefits. You’ll find that many paid services online are less expensive than local tax offices while providing the same caliber of service. Some offer year round business accounting services…not only during the tax season.

5. Easy Filing for Federal and State Income Taxes

When filing your federal income taxes, some e-file services provide a quick way to transfer your personal data to a form for state filing. You may have to pay a small fee to do this, but it can be well worth it if you wish to avoid filling out other tax documents. Keep in mind that state filing is always separate from federal income tax, and the duration and amount of your refund for state taxes will differ from federal taxes.

With online income tax preparation, you’ll no longer have to dread filing taxes each year. Enjoy this quick, simple method of tax preparation now and for all future filing needs!