Valerie Olmos Bookkeeping Services

10/08/2021

Year-end is approaching and now is a good time to make sure your income tax withholding is where it should be so you don't encounter any unpleasant surprises at tax time. This article from the IRS is full of useful information and links to calculators to help you figure out where you need to be.

IR-2021-199: Give tax withholding a fresh look as 2021 year-end nears Internal Revenue Service (IRS) sent this bulletin at 10/08/2021 11:05 AM EDT IRS Newswire October 8, 2021 News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-Ne...

07/08/2021

If you are an employee, I highly recommend using this tool from the IRS. It will ensure you don’t end up owing taxes when you file your return. If you are an employer, this is a great tool to pass on to your employees.

Tax Tip 2021-98, July 8, 2021

06/27/2017

If you get a call from someone who says he's from the IRS and tells you that you owe back taxes, hang up the phone!

The IRS doesn't call taxpayers and if they do contact you about unpaid taxes, they do it by mail, not by phone.

Here’s what you can do to protect yourself:

Don’t wire money or pay with a prepaid debit card. Once you send it, the money is gone. If you have tax questions, go to irs.gov or call the IRS at 800-829-1040.

Pass this information on to a friend. You may not have gotten one of these calls, but the chances are you know someone who has.

Please Report Scams

If you believe you've been the victim of an IRS scam, please report it to the Treasury Inspector General for Tax Administration.

04/25/2017

IRS Late Filing Penalties

There are two penalties for filing tax returns late. One penalty is for filing late and the other is for paying late. And, interest accrues on these penalties! The late filing penalty can range from $205 or, if you owe less than $205, 100% of what you owe. Penalties for paying late can range from .5% to 25% per month of the unpaid tax.

For more information, visit the IRS website at the following address: https://go.usa.gov/xX6rz

April 18 was this year’s deadline for most people to file their federal tax return and pay any tax they owe. If taxpayers are due a refund, there is no penalty if they file a late tax return.

01/30/2017

This year I am a volunteer for the VITA Tax Program. This program provides free tax preparation for certain taxpayers who's income is less than $60,000. If you or someone you know can benefit from this program, please share this post.

10/31/2016

The meaning of "Halloween."

Halloween is a contraction of "All Hallows Eve." "Hallow", as a noun, is an old English word for "saint" or "holy person." When used as a verb, it means "to honor as holy."

Have a Happy "Holy" day!

10/25/2016

In case you're wondering............

Have you, or someone you know, had their identity stolen? I've often wondered what happens to the people who commit this crime and recently found out that in 2015, the IRS stopped 1.4 million confirmed ID theft returns and protected $8.7 billion. And, in the past couple of years, more than 2,000 people have been convicted of filing fraudulent ID theft returns.

For helpful bookkeeping tips, visit our website at valerieolmosbookkeeping.net.

10/15/2016

Bookkeeping Tip #13 - Paying Vendors with Your Credit Card

Paying your vendors and suppliers by credit card gives you an opportunity to optimize your cash flow while still allowing you to take a tax deduction for the expense. This can be especially useful come December if you need to reduce your taxable income. In addition, you are not required to send 1099's to vendors you pay with a credit card. Added bonus, you may even earn more miles or points on your card.

For more bookkeeping tips, visit our valerieolmosbookkeeping.net.

08/26/2016

Bookkeeping Tip #12 - New Filing Deadline

The IRS has changed the filing deadline for 2016 tax year forms W-2, W-3 and 1099’s for nonemployee compensation shown in Box 7. These forms must now be filed with the IRS by January 31, 2017. If you are an employer who needs to file these forms and you are not using an outside service, now is a good time to plan ahead and consider outsourcing this task to a professional.

Visit our website for more helpful bookkeeping tips at valerieolmosbookkeeping.net.

08/08/2016

Bookkeeping Tip #11 - Late Payroll Tax Deposits

In 2017, the IRS will be implementing new software that will notify them of a missed employment tax deposit. If this occurs, employers can expect to receive an alert within 72 hours. If the employer does not respond to the alert, the IRS may send enforcement staff to their door offering help and explaining the consequences of missed tax deposits. In addition, if payments are not made in a timely fashion, a court injunction could be issued or even more serious, a receiver could be appointed over the business to approve expenditures and place other restrictions.

For more bookkeeping tips, visit valerieolmosbookkeeping.net.

08/03/2016

Bookkeeping Tip #10 - Cash vs. Accrual Accounting

Most small businesses use the cash method of accounting because it's much easier than the accrual method. However, there are certain situations where the accrual method of accounting must be used. Generally, if you keep an inventory you must use the accrual method but certain qualifying taxpayers can use the cash method. For more details, see IRS Publication 334 at IRS.gov.

For more bookkeeping tips, visit our website at valerieolmosbookkeeping.net.