MEDOWSCPA.COM- A Blog for the Self-Employed & Small Business Owners

WHY IT IS GOOD TO FILE TAXES EARLY

Many CPA firms including Medows CPA advise clients to file tax returns as early as possible.  One principal reason is that filing early allows your CPA to sort through any potential complex tax issues so that the tax return can be completed as accurately as possible. All CPAs get very busy and inundated with work as April 15th approaches, so it is best to work with your accounting firm earlier on for more personalized and relaxed attention. As a client, if you choose to file earlier on, you will certainly have less stress and will have one less task remaining on your to-do list.

Taxpayers can begin filing returns as early as January 1, 2010, but since employers and contractors have a deadline of January 31, 2010 for mailing out W2 and 1099 forms, it is most important to wait until all your paperwork is received from employers and contractors.

Filing early on in the year ensures that any refunds that are due to you will be processed more quickly. The IRS will be less occupied can review your returns much sooner.

In addition, if taxpayers wait until the last minute, in rushing to finish preparing the taxes it is easier to make mistakes. Taxpayers may also not be able to meet the April 15th deadline by waiting until the last minute, since due to sickness, accidents, traffic, or other reasons, it may be impossible to get to the post office. There are definitely fees associated with late taxes filed not on extension, such as interest and fines. Filing early also lets you to choose your preferred method of filing and requesting a refund, if applicable.

About us: MEDOWS CPA, PLLC is a boutique New York City CPA Firm serving the needs of Individuals & Small Businesses in New York City and throughout the nation.  We work with the self-employed, freelancers, LLC, C-Corporations and S-Corporations to help them with their accounting and tax needs.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

Courtest of WebCPA

MILLIONS MAY OWE UNDER MAKING WORK PAY

Washington, D.C. – The Making Work Pay Credit could lead to more than 15.4 million people owing additional taxes, according to a new report. The credit is advanced to taxpayers by employers through reduced withholding, resulting in an increase in take-home pay.

A Treasury Inspector General for Tax Administration report said that the implementation of the tax credit creates the possibility that millions of taxpayers may be advanced more of the credit through reduced withholding than they are entitled to receive. When filing their returns for 2009 and 2010, such taxpayers may ultimately owe additional taxes. Some also may be subject to estimated tax penalties.

For more information on how this may apply to you, do not hesitate to contact us.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses