Blanchard-Lafrance Accounting & Tax

12/30/2020

Come one come all! With our trusted team for this 2020 Tax Season get your Pre-Advance by the 3rd of January!!!

06/29/2018

And All the time 😂😂😂

04/17/2015

What to Know about Late Filing and Late Paying Penalties

April 15 was the tax day deadline for most people. If you are due a refund there is no penalty if you file a late tax return. But if you owe tax, and you failed to file and pay on time, you will usually owe interest and penalties on the tax you pay late. You should file your tax return and pay the tax as soon as possible to stop them. Here are eight facts that you should know about these penalties.

1. Two penalties may apply. If you file your federal tax return late and owe tax with the return, two penalties may apply. The first is a failure-to-file penalty for late filing. The second is a failure-to-pay penalty for paying late.

2. Penalty for late filing. The failure-to-file penalty is normally 5 percent of the unpaid taxes for each month or part of a month that a tax return is late. It will not exceed 25 percent of your unpaid taxes.

3. Minimum late filing penalty. If you file your return more than 60 days after the due date or extended due date, the minimum penalty for late filing is the smaller of $135 or 100 percent of the unpaid tax.

4. Penalty for late payment. The failure-to-pay penalty is generally 0.5 percent per month of your unpaid taxes. It applies for each month or part of a month your taxes remain unpaid and starts accruing the day after taxes are due. It can build up to as much as 25 percent of your unpaid taxes.

5. Combined penalty per month. If the failure-to-file penalty and the failure-to-pay penalty both apply in any month, the maximum amount charged for those two penalties that month is 5 percent.

6. File even if you can’t pay. In most cases, the failure-to-file penalty is 10 times more than the failure-to-pay penalty. So if you can’t pay in full, you should file your tax return and pay as much as you can. Use IRS Direct Pay to pay your tax directly from your checking or savings account. You should try other options to pay, such as getting a loan or paying by debit or credit card. The IRS will work with you to help you resolve your tax debt. Most people can set up an installment agreement with the IRS using the Online Payment Agreement tool on IRS.gov.

7. Late payment penalty may not apply. If you requested an extension of time to file your income tax return by the tax due date and paid at least 90 percent of the taxes you owe, you may not face a failure-to-pay penalty. However, you must pay the remaining balance by the extended due date. You will owe interest on any taxes you pay after the April 15 due date.

8. No penalty if reasonable cause. You will not have to pay a failure-to-file or failure-to-pay penalty if you can show reasonable cause for not filing or paying on time. There is also penalty relief available for repayment of excess advance payments of the premium tax credit for 2014.

If you found this Tax Tip helpful, please share it through your social media platforms. A great way to get tax information is to use IRS Social Media. You can also subscribe to IRS Tax Tipsor any of our e-news subscriptions.

Additional IRS Resources:

IRS Direct PayMake a Payment – payment optionsTax Topic 653 - IRS Notices and Bills, Penalties and Interest ChargesQ&A about interest and penalties for filing and paying latePublication 594, The IRS Collection ProcessFiling Your TaxesIRS Tax Map

IRS YouTube Videos:

IRS Tax Payment Options – English | Spanish |ASLOnline Payment Agreement – English |Spanish | ASL

IRS Podcasts:

IRS Tax Payment Options – English | SpanishOnline Payment Agreement – English |Spanish

02/23/2015

Taxable or Not – What You Need to Know about Income

All income is taxable unless the law excludes it. Here are some basic rules you should know to help you file an accurate tax return:

Taxed income. Taxable income includes money you earn, like wages and tips. It also includes bartering, an exchange of property or services. The fair market value of property or services received is taxable.

Some types of income are not taxable except under certain conditions, including:

Life insurance. Proceeds paid to you because of the death of the insured person are usually not taxable. However, if you redeem a life insurance policy for cash, any amount that you get that is more than the cost of the policy is taxable.Qualified scholarship. In most cases, income from this type of scholarship is not taxable. This means that amounts you use for certain costs, such as tuition and required books, are not taxable. On the other hand, amounts you use for room and board are taxable.State income tax refund. If you got a state or local income tax refund, the amount may be taxable. You should have received a 2014 Form 1099-G from the agency that made the payment to you. If you didn’t get it by mail, the agency may have provided the form electronically. Contact them to find out how to get the form. Report any taxable refund you got even if you did not receive Form 1099-G.

Here are some types of income that are usually not taxable:

Gifts and inheritancesChild support paymentsWelfare benefitsDamage awards for physical injury or sicknessCash rebates from a dealer or manufacturer for an item you buyReimbursements for qualified adoption expenses

For more on this topic see Publication 525, Taxable and Nontaxable Income. You can get it on IRS.gov/forms anytime.

If you found this Tax Tip helpful, please share it through your social media platforms. A great way to get tax information is to use IRS Social Media. You can also subscribe to IRS Tax Tipsor any of our e-news subscriptions.

02/20/2015

IRS Updates IRS2Go Smartphone App

The IRS recently released IRS2Go 5.0, an update to the only official IRS smartphone application. The free mobile app is compatible with both Apple and Android devices. This new version offers a number of safe and secure ways for you to use other popular IRS tools. The IRS app also helps you get the most up-to-date tax information and allows you to:

Get Your Refund Status. You can check the status of your federal tax refund through IRS2Go. Enter your Social Security number - which the app will mask and encrypt for security purposes. Select your filing status and enter the amount of your refund from your 2014 tax return.Find Free Tax Preparation Assistance. The IRS Volunteer Income Tax Assistance and the Tax Counseling for the Elderly programs offer free tax help for those who qualify. This tool within IRS2Go will help you find the nearest volunteer tax help site. You can enter your ZIP code to search, or search based on your current location to find the closest help site locations along with directions to the sites and other details.Stay Connected. You can get the latest federal tax news by following the IRS on Twitter or Tumblr. You can also watch helpful videos on the IRS YouTube channel. Mobile app users can subscribe to receive IRS Tax Tips. The IRS issues Tax Tips daily during the tax season and three times a week in the summer. Special Edition Tax Tips highlight important topics throughout the year.

Download IRS2Go 5.0 free of charge from the Google Play Store for Android devices or from the Apple App Store for Apple devices. IRS2Go is available in both English and Spanish. Users who downloaded past versions of IRS2Go should update their devices with the most current version of the app.

If you found this Tax Tip helpful, please share it through your social media platforms. A great way to get tax information is to use IRS Social Media. You can also subscribe to IRS Tax Tipsor any of our e-news subscriptions.

02/19/2015

Health Care Law Affects 2014 Tax Returns - Tax Help Available

Starting with the 2014 tax year, certain provisions of the Affordable Care Act will affect federal tax returns. The majority of taxpayers will simply need to check a box on their tax return to report health coverage for everyone on their return for all of 2014. Some need to indicate that they’re eligible for an exemption from maintaining coverage. And others will have to calculate their shared responsibility payment and add it to their tax return.

The IRS has several options to help you file your tax return when the tax filing season starts. Filing electronically is the easiest way to file a complete and accurate tax return. Electronic Filing options include free Volunteer Assistance, IRS Free File, commercial software and professional assistance.

Volunteer Assistance

Each year millions of people have their tax returns prepared for free by volunteers. These volunteers are part of the IRS Volunteer Income Tax Assistance and Tax Counseling for the Elderly program. The IRS sponsors both programs and works with community groups to train and certify volunteers.

Using VITA and TCE will help ensure your taxes are prepared accurately, , including provisions related to the Affordable Care Act such as the premium tax credit and exemptions from coverage.

Most VITA are now open. You can visitIRS.gov/VITA to find the nearest VITA site, Search the word ’VITA’ and then click on “Free Tax Return Preparation for You by Volunteers.” Site information is also available by calling the IRS at 800-906-9887.

IRS Free File

IRS Free File offers easy-to-use software or online fillable forms. IRS Free File is a partnership between the IRS and the Free File Alliance. The Alliance is a group of private-sector tax software companies that make their products available for free.

The only way to use IRS Free File is through the IRS website. Once you choose a Free File company, you’ll go to their website to prepare, print and e-file your tax return.

The question and answer format of Free File software will help you find tax breaks that you may be entitled to claim. The software selects the appropriate tax forms and does the calculations for you.

Taxpayers who earn $60,000 or less can use brand-name software. If you earned more than that, you can use Free File Fillable Forms. This option uses electronic versions of IRS paper forms.

Professional Assistance

Many people hire a professional when it’s time to file their tax return. If you pay someone to prepare your federal income tax return, the IRS urges you to choose that person wisely. Even if you don’t prepare your own return, you’re still legally responsible for what is on it.

Some tips to keep in mind when choosing a tax preparer include:

Preparer’s qualifications – make sure they have a Preparer Tax Identification NumberService fees – avoid preparers who base their fee on a percentage of your refundE-file – make sure your preparer is an e-file providerAvailable - make sure the preparer will be available after the filing deadline in case questions come up about your return

The IRS has recently launched a new return preparer directory that is a searchable, sortable listing featuring: the name, city, state and zip code of attorneys, CPAs, enrolled agents and those who have completed the requirements for the voluntary IRS Annual Filing Season Program. All preparers listed also have valid 2015 Preparer Tax Identification Numbers.

It is important that you file a complete and accurate tax return to avoid any processing delays. If your return includes errors or is incomplete, it may require further review and could delay your refund. IRS e-file is the best way to file an accurate tax return. The tax software that you use to e-file helps avoid mistakes by doing the math for you. It guides you every step of the way as you do your taxes. IRS e-file can also help with the new health care law tax provisions.

For more information about filing options and how the health care law will affect your tax return visit IRS.gov/aca.

12/30/2014

2014 Tax Legislation **efile dates announced

This particular blog post is updated as we learn more about tax legislation and the extender provisions.

Posted 12-29-2014 IRS Quick Alert
Subject: 2015 Filing Season for Modernized e-File (MeF) and Electronic Management System (EMS) Individual and Business Returns

The Internal Revenue Service has announced plans to begin accepting Individual tax returns electronically on January 20. Paper tax returns will begin processing at the same time. For additional information please access the press release at the following link.
•Tax Season Opens As Planned Following Extender Legislation
Important Note for Business Filers: The IRS will begin accepting Business tax returns on January 9, 2015.

07/23/2014

http://smallbusiness.chron.com/accounting-estimated-taxes-72038.html

Estimated taxes are typically paid on a quarterly basis. Find out about the accounting for estimated taxes with help from a lifelong educator who truly believes that knowledge is power in this free video clip.