Courtesy of WebCPA.com:

The Commonwealth of Pennsylvania will offer amnesty to those who owe back state taxes, for only the second time in its history.

For 54 days, between April 26 and June 18, 2010, the Pennsylvania Department of Revenue will waive 100 percent of the penalties and half of the interest for anyone who pays delinquent state taxes, including out-of-state businesses who owe Pennsylvania taxes.

Historic budget gaps across the U.S. have been prompting many states to search for additional revenue. In 2009, Connecticut, New Jersey, Louisiana and Virginia were among the states that held tax amnesty campaigns.

The only previous Pennsylvania Tax Amnesty program, in 1995-1996, saw 63,506 returns with a total collection of $92.8 million. That tax amnesty program waived penalties but required full payment of taxes and interest. Pennsylvania received about 10 percent of its tax amnesty returns from out-of-state people and businesses from every state in the country.

Delinquent taxpayers who don’t file during this year’s tax amnesty will be penalized an additional 5 percent.

The 2010 Pennsylvania Tax Amnesty will be completely online.  All returns must be filed via the Internet at www.PATaxPayUp.com. The site officially goes live on April 26.  No paper applications will be distributed or received. Those with questions are encouraged to call the state’s help line at 1-(877) 34-PAYUP. That hotline goes live on April 7.

If you have any questions about how this amnesty effects those living or working in New York, don’t hesitate to contact your NYC CPA.

About us: MEDOWS CPA, PLLC is a boutique New York CPA NY 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

New York Certified Public Accountant Lists Top Tax Filing Mistakes

If you are anxious to get your taxes filed this year, you may wonder how you know who to choose to do your taxes for you. There are several solutions but a New York Certified Public Accountant is the number one choice for several reasons. Before you begin searching for someone to do your taxes, you may want to familiarize yourself with the top tax filing mistakes that are made everyday so you can avoid them. Here are some basic filing mistakes.

Tip #1: Errors in math is usually the most common mistake made on a tax return. Although today most tax preparer NY uses computerized software to file their taxes, if the tax preparer does not enter the right number then it cannot compute it correctly. Most IRS software systems do catch errors in math when they go over all the forms but if a mistake is not caught it can affect your balance due or balance owed. Make sure that your preparer has a way of double checking all the work before it is submitted to the IRS.

Tip #2: Reporting interest and dividends is another mistake made on tax preparations. It’s important that you report any earned interest or dividend income that you have earned throughout the year. The IRS reports these notices every year and you may not be getting back the right results. Make sure when you receive the notice from IRS that it is correct.

Tip #3: If you invest or sell something that you are invested in, you need to report it. This includes when you sell a portion or all of your investment. You need to account for any profit plus any additional income that you have reinvested. If you buy or sell stocks, you need to make sure that you present this to your New York Certified Public Accountant so they can help you determine how it would be best to file it. If you don’t report stock sales to the IRS, when the one that paid you reports their income to the IRS then the IRS will be able to compare it to your tax papers. If you did not report it then they will notify you. If you receive a letter, take it to your Certified Public Accountant so they can help you solve this problem and get the IRS paid.

Tip #4: Change in marital status is another common mistake on tax forms. Whatever your marital status is on December 31 is what you use to file your taxes for that year. If you decide to file married filing separately, you will not be able to claim all of those tax breaks you get when filing as a couple.

Tax tip #5: To avoid any confusion, you need to keep all receipts on everything you want to file a deduction for. In another words, if the IRS wants proof of a deduction you need to have it in order for them to accept the deduction. Otherwise, it is just your word and most of the times the IRS will not go on just your word.

To make sure that your tax filing New York is done as per rules, it is best to consult or hire a New York Certified Public Accountant for a hassle free year ahead.

About us: MEDOWS CPA, PLLC is a boutique New York CPA NY 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

Why do I Need a CPA to File Old Tax Returns in NYC?

The mere thought of owing the IRS anything can scare anyone, this NYC CPA included! However, some people are so fearful that they actually do not file tax returns on time and have prior year returns outstanding.

Regardless of why you didn’t file old tax returns this New York City CPA may tell you that you need to take care of it this year.

When it comes to dealing with the IRS, most people are very intimidated by them, especially if you are late filing. Our staff of CPAs and CPAs in training can work with you first to get you back on track. Most of the time, the IRS will work with you to make payment arrangements. As long as you keep your arrangements there will not be any problems. If you owe the IRS money, they may place a lien on your property to hold as collateral until you satisfy your debt. You can make your payment directly to the IRS or you can make your payment through your CPA. You can make these arrangements during your visit.

Once you file your old, prior year return, you need to determine what caused you to get off track to begin with. You need a way to get better organized so this does not happen to you again. But before you can think ahead you need to clean up the path behind you and pay off the past due years. A CPA can help you file the right form and get your payments into the IRS quickly and easily. They can also help you get back on the right road so you can be ready for this year’s taxes.

Ask your CPA how you can better prepare and stay ahead of the tax season. If you need to make payments to the IRS make sure that you stay on track and don’t forget any. When possible, pay a little more one month when you know that you have it so you can hurry up and pay it off.

About us: MEDOWS CPA, PLLC is a boutique New York City Certified Public Accountant firm (CPA NYC) working with 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

Understanding Expiring Refund in NYC

If you have an expiring refund a NYC CPA can help you claim it. You have three years from the date that the tax return is filed in order to claim any refund due to you. If you do not file the tax return then you may lose the refund all together. However, you are given three years to claim it.

You have money coming to you so why would you not claim it? Sometimes people do not understand the process to retrieving money. If you lost a refund check and then you find it later, only to discover that it is expired, you may not know exactly what your options are. You have up to three years to claim a refund after it is expired but it is important that you keep up with your paperwork to prove that you are due a refund.

You will need to contact your NY CPA that helped you file the taxes that year. Explain to them that you found your check but it is expired. They will assist you in verifying your information to the IRS and get another check issued to you.

Another reason why people do not cash their refund checks is because they left the country for a short period of time and the check came while they were gone. When they get back they no longer recall that they did not receive their check or cash their check when they got home. When you do think of it or come across it, the check may be expired or due to expire in a short period of time so you cannot cash it.

If you move after filing your tax return, you may not get your check in the mail. A lot of things get lost in the mail and then people always suffer from it. Unfortunately, an expiring tax refund New York City check is no exception when it comes to getting lost. When you move and months later, realize that you did not cash your check, you may want to file for an expiring refund. Your refund is sitting in the IRS account waiting to be claimed so you want to make sure that you get the money that is due to you.

There are several reasons why people do not claim their refund and when that happens, the time that you can claim it begins to count down from the date that you file your returns. Verifying your information to the IRS can take a while so you need to file it as soon as possible if you know that you have a refund out there that needs to be claimed.

If you don’t know how to verify your information or which department to contact then you will need to contact your New York CPA for help. They can give you the information that you need and help you file the right paperwork in order to get your money. Don’t wait until the next tax season to file for expiring refund NYC Manhattan. You need to take care of it as soon as you remember or discover that you never cashed a check from the IRS.

About us: MEDOWS CPA, PLLC is a boutique New York City Certified Public Accountant firm (CPA NYC) working with 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