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.

In 2011, online tax return softwares will be used by millions of people in USA. These softwares have become very popular not just because they make process of filing very easy, but also because through most of them tax refunds are received very quickly.

But for 2011, there are more than 10 tax filing software that are available in the USA. They are all good and are user friendly.

But, you want to select the best online tax software for 2011 returns.

How to select one? Let me give you 3 important tips to help you make that decision -

1. Guarantee associated with the software – The 1st and foremost you should check is what form of guarantees are given by the tax software company. Some companies will give guarantee that you will receive the highest tax refund for 2011 returns. Others will give you guarantee that using their software you’ll receive the fastest refunds. Of course, select the one that gives you the highest tax refunds

2. Best Customer support – Even though the 2011 tax softwares a very user friendly, often you’ll have some questions about some of the data or amount that you must enter when preparing returns. During such cases, a good customer support is very necessary. The support can be through forums where you can post tax related questions, can be a helpline telephone number or a customer support desk which answers your questions over email.

3. Ease of use and Feedback – It is highly necessary that the 2011 online income tax software is very user friendly and has very good feedback from users. You don’t want the software to stop working or crashes in the middle of your filing. Do you? So definitely check out the review of the Tax software.

Online tax filing provides an easy, hassle-free way of filing your taxes. Even if you’ve never filed taxes before, online tax filing will get you through the process, quickly and affordably.

Why file taxes online?

There is little reason to file your taxes the traditional way ever again! With online tax filing, you are guided step by step to ensure that your tax returns are accurate. Help is always available at the click of a button through an interactive system built directly into the program. Because everything is outlined for you, you’ll only need your W2s, 1099s, and other documents to complete your taxes.

Online tax filing makes your life easier. It works with the IRS system, eFile, which electronically files your tax returns. There is no need to worry about missed deadlines because you won’t have to send them by mail. At the end, you only need to click a button to send your tax returns. You can also print out a copy for your records.

With online tax filing, you won’t have to pay a tax accountant’s professional fees to get your taxes filed. Online tax filing is as low as $20, which saves you money. Because online tax filing systems are designed to catch errors, you don’t have to worry about your information being wrong. Also, online tax filing offers deductions tools so you can accurately enter your deductions and maximize your tax refund.

You can also opt to receive your tax refund check via direct deposit. With online tax filing, all you have to do is enter your bank account and routing numbers to request a direct deposit. The best part is that you’ll receive your refund check in half the time. Plus, you can skip the line at the bank and the time it takes for the check to clear.

What do I need to file my taxes online?

Just gather your W2′s, 1099s, receipts, and other necessary documents. All the information you need is contained within these documents. Online tax filing systems will guide you through the documents. Online tax filing allows you to look in the correct area and fill in the number on the online form. You won’t have to worry about reading the wrong box or entering the wrong number. Everything is outlined so you can quickly and easily file your taxes.

Online tax filing programs come equipped with a deduction finder. This ensures that you have fully taken advantage of every available deduction. Just answer yes or no questions and the online tax filing program will guide you to the right deductions. With a system so accurate, there is no need to worry about missed deductions.

The Bottom Line

Online tax filing is the easiest way to file your taxes and offers the best way to pay your taxes and receive your refund check. If you want a hassle-free, easy way to file your taxes, give online tax filing programs a try.

Imagine doing taxes without having to make sure a pencil has been sharpened, looking for a calculator, or having to erase mistakes on a tax return. Imagine not having to worry about adding incorrectly or overlooking deductions.

Taxpayers who find themselves fretting over such concerns every year as April 15 approaches may find that using an online tax program to prepare their returns can make the process less painful. Preparing taxes manually requires a taxpayer to think, but using an online tax service is more about answering questions and entering data. In effect, all the adding and subtracting involved with the old-fashioned means of preparing taxes is replaced by typing and rolling a mouse on a computer or laptop.

Places to file your tax online can be found by searching the Internet, where various programs can be found, each offering different options for different costs. Each web site may vary with the addition of different options that include:

Basic tax filing programs Enhanced programs that ask dozens of questions designed to help increase deductions Programs for taxpayers who have investment and rental properties Home and business

The decision to file taxes online also allows a taxpayer to prepare their taxes on their schedule. Most online programs allow a user to log out and back in at the point where they left off. Of course, finding the original paperwork and calculator is now replaced with remembering the password selected to log onto the program. There are usually numbers or email addresses for contacting someone about any problems with using these tax filing web sites.

Another advantage of using a program online is that the actual filing can also be done with a few clicks of a mouse. Submitting a return no longer involves getting a neat copy of a return done, finding an envelope and attaching a stamp.

Instead, a tax filer adds their signature electronically and hits “submit.” The process of either the federal or state government accepting the return may take a day or two, so it’s best not to wait until the last minute (the translation being that even though filing electronically makes preparing your tax faster, you still should not wait until 5 p.m. on April 15).

In most cases, filing your tax returns online is free. The actual cost is incurred with the filing. Because of that, it’s important to have a credit or debit card handy to enter account information. Along with a card, there are still some things that a taxpayer is required to have ready for entry into the program:

All W2 forms from current employers or those in the previous year; Receipts for deductions; Receipts or cancelled checks for gifts to charity, churches or other organizations; Medical receipts; Canceled checks for any other purchases or expenses

The bottom line is that using an online system can make preparing and filing taxes more convenient by holding the hand of a taxpayer as it walks them through the process via cyberspace.

Online tax preparation provides you with an easy and safe way to file your taxes. Some accountants have been using this online method to file for their clients for two decades. Between the IRS and some private tax services, online tax return filing has now been updated to accommodate the requirements of individuals as well as businesses.

1. Saves Your Time and Money
Online tax preparation saves your time and money. You will save your time because you can fill in your information using online software without writing all your information manually with your hand. You can save your money by paying less for online services compared to hiring a professional that might be unaffordable to you. You can also think of using free e-file services available.

By filing electronically, you can also receive your refund much faster within a couple of weeks. You can choose direct deposit option in order to get your tax refund deposited directly into your bank account. Filing electronically can save time for the IRS because there is less paperwork or they do not have to re-type your return file.

2. File Your Income Taxes Conveniently
Another advantage of online tax filing is you can file your tax returns conveniently from your home computer if you have access to internet connection. You can fill out your information using online software any time whenever you wish. Whether you use free online software or free/paid e-filing service, you will be able to deal with all your filing needs from your office or home.

3. Make Your Return File Errors-free
Online tax preparation can help you reduce errors because of the error-check feature in the software. Moreover, the software will calculate your mathematical totals accurately for you when you enter the right information. It will prompt you to correct errors before moving forward with the form submission. So, less errors means less chances for an audit and quick processing of your return file.

4. Claim Credits and Deductions that You Qualify for
Now you do not have to worry about which credits to take and which deductions to claim. The easy deduction search tool will help you find out and choose those deductions which will suit you. Claim the deductions suitable to your tax situation so that you may have less chances of being unnecessarily audited by the IRS.

5. Get the Fast IRS Income Tax Refund
When you choose to file your tax return online with direct deposit option, then you will get your refund directly into your bank account within as few as 10 to 14 days. Getting online refund is the fastest and safest way of getting your money back into your pocket.