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Beware, the Taxman cometh

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Before I begin today’s topic, I wanted to mention the unfolding tragedy in Japan after the Tsunami.   I have a hard time believing what I see when looking at the footage of the force of the water as it pummels the coast of Japan.  Another concern is the Nuclear power plants.  We can only hope they get those under control or contained as soon as possible.    

Just as I cautioned during the Haiti earthquake,  if you plan to donate to the relief effort, I advise it is best to give to established charities that know how to mobilize and that have the lowest administrative costs so that the highest percentage of your donations go to the relief effort. 

A word about potential scams.  When tragedy strikes like this there are always dishonest people that try to take advantage of the situation.  Be very careful that you give to an organization that is credible and established.  If there are ANY doubts do not give to the organization.  Also, be aware of scams over the phone or the internet.  Do not give personal information such as your bank account or social security number to anyone no matter how “real” the scheme may appear.

Now for today’s topic…

Uncle Sam

Daylight savings time has begun, spring will arrive next week and March madness is about to begin tomorrow.  I don’t know what that means to you but to me that makes me think of tax time.  Corporate tax returns are due tomorrow unless an extension is filed and partnerships and individual return are due on April 18th this year due to the Emancipation day holiday in the District of Columbia. 

So, what are you going to do about your business taxes?    It is a very difficult question but let me advise you to take care of them on time and by paying the legal minimum.  It is the CPA’s responsibility to file a tax return so that the tax due on the return is the legal minimum.  I would recommend you get a CPA to prepare your tax return if you are not already doing so. 

In addition to the income tax return for your business are you certain that you are in compliance with all other filing obligations?  Are you current with your payroll taxes?  Are you collecting sales tax and remitting it to the state on a timely basis? 

As a result of tight budgets that states are encountering, many states are focusing on use tax compliance.  If you are not filing a use tax return for purchases that are made out of state and brought in to your state, you are in trouble.  Companies who are not filing a use tax return are the first place the State auditor’s will look. The second place they will look is for unusually low amounts of use tax paid on filed returns for possible underreporting of use tax.   You are the low hanging fruit in their quest for more revenues to balance their budget.  Get in compliance today.

For information on Ohio’s voluntary disclosure program, click here.

Crain’s Cleveland Business had a good article on this a few weeks ago.  Click here to read more.

To access Pennsylvania’s Use Tax Voluntary Compliance Program, click here to read more.

If you have any questions, please seek the advice of your CPA or contact me and I will be happy to assist you.  Have a great week.

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Written by pacelinebiz

March 14, 2011 at 3:55 pm

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