Business 101 – Getting My Business Started

1/29/09 or 2/24/09 or 3/24/09 6 p.m. FREE

Business 101 – Getting My Business Started – Sponsored by MaineStream Finance & Penquis This class will provide an overview of the pros and cons of operating a microenterprise. What a business plan is and why it is needed and resources for business development assistance. • Being An Entrepreneur • Business Success • Professionalism • Business Plan • Networking • Resources • Budgets • Credit • Review of Upcoming Classes and Workshops Penquis, 50 North Street, Dover-Foxcroft To register call 564-7116 or email jmacomber@penquis.org. This workshop is FREE

IRS Reminder: Make Use of Recent Tax Law Changes for 2008 and Dec. 31 Is the Last Day for Most of These Actions

IRS Reminder: Make Use of Recent Tax Law Changes for 2008 and Dec. 31 Is the Last Day for Most of These Actions 

WASHINGTON — Tax year 2008 is quickly nearing an end. The Internal Revenue Service reminds taxpayers to avoid putting off important financial tasks until the last minute. The important deadline of Dec. 31 is fast approaching for many tax-planning issues.

The IRS also urges taxpayers as part of their year-end tax planning to be aware of recent tax changes as well as recently reinstated tax deductions. Some tax breaks and a review of your current tax situation may result in a bigger refund or less taxes to be paid come tax time.

Also, the IRS wants to make filing your tax return less stressful. Consider e-filing your tax return to ensure you maximize tax deductions, claim deserved credits, and take advantage of tax benefits. You may even be able to file electronically free of charge using IRS Free File.

The IRS offers these tax tips for you to consider:

First-Time Homebuyers Tax Credit — First-time homebuyers should begin planning now to take advantage of a new tax credit available for a limited time. The credit applies to primary home purchases between April 9, 2008, and June 30, 2009. Normally, this tax credit must be paid back in equal payments over 15 years. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 for either a single taxpayer or a married couple filing jointly. First-time homebuyers are those who have not owned a home in the three years prior to a purchase.

Real Estate Tax Deduction — There is an additional standard deduction for those who don’t itemize their deductions, but pay real estate taxes. The additional deduction amount is equal to the amount of real estate taxes paid up to $500 for single filers or up to $1,000 for joint filers. This deduction is available for the 2008 and 2009 tax years and increases your standard deduction.

Tuition and Fees Deduction — You may be able to deduct qualified tuition and required enrollment fees up to $4,000 that you pay for yourself, your spouse or a dependent. You do not have to itemize to take this deduction. However, a taxpayer cannot take both the tuition and fees deduction and education credits (Hope & Lifetime Learning Credits) for the same student in the same year. Income limits and other special rules apply to each of these provisions. To determine whether your expenses are qualified, refer to IRS Publication 970, Tax Benefits for Education. The 2008 edition is available soon online. This publication also describes other education-related tax benefits.

Educators’ Out of Pocket Expense Deduction — The educator expense deduction allows teachers and other educators to deduct the cost of books, supplies, equipment and software used in the classroom. Eligible educators include those who work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide in a public or private elementary or secondary school. Worth up to $250, the educator expense deduction is available whether or not the educator itemizes deductions on Schedule A.

Recovery Rebate Credit — If you did not qualify or did not receive the maximum amount for the 2008 economic stimulus payment you may be entitled to a recovery rebate credit when you file your 2008 tax return. Review the tax return filing instructions including the recovery rebate credit worksheet. You need to know the amount of the payment you received in 2008, which can be found on your Economic Stimulus Payment Notice (Notice 1378). Two online tools on IRS.gov will be available soon — the Recovery Rebate Credit Calculator will help taxpayers figure the amount they should claim on their 2008 tax return, and How Much Was My 2008 Stimulus Payment? helps you determine what your stimulus payment was.

New Rules for “Cash” Charitable Contributions — Since tax year 2007, to deduct any charitable donation of money, you must have a bank record, credit card statement or a written communication from the recipient showing the name of the organization and the date and amount of the contribution. In determining what may be deducted as a charitable contribution, see IRS Publication 526 for 2008 to be released in the near future.

Earned Income Tax Credit (EITC) — This credit is offered by the federal government to working families and individuals. You may qualify for the earned income tax credit, or EITC, if you worked, but did not earn a lot of money. EITC is a refundable tax credit meaning you could qualify for a tax refund even if you did not have federal income tax withheld. If you qualify, the amount of your EITC will depend on whether you have children, the number of children you have, and the amount of your wages and income. For more information, go to www.irs.gov/eitc or see IRS Publication 596 for 2008.

Recordkeeping — Are your tax records organized? The IRS encourages taxpayers to take the time now to gather and organize their records to reduce stress at tax time. For tips, see Publication 552, Recordkeeping for Individuals, for 2008.

Electronic Filing — The IRS encourages taxpayers to consider e-filing their tax returns. Nearly 90 million returns were filed electronically this year, accounting for about 58 percent of all filers. E-filing is easy, safe and accurate. The fastest way for you to receive a tax refund is to use IRS e-file and choose direct deposit. You can receive your refund in as little as ten days with IRS e-file and direct deposit. The error rate of an e-filed return is less than 1 percent compared to 20 percent for a paper tax return. IRS e-file is the most efficient way to prepare your taxes, particularly taking into consideration the 2008 tax law changes. About 70 percent of taxpayers can prepare and file electronically for free when they enter through IRS.gov and use Free File.

Tax Forms and Publications — Tax forms and publications can be accessed on this Web site or requested by calling the IRS toll-free at 1-800-TAX-FORM (1-800-829-3676).

Beware of Bogus E-mails — The IRS does not send unsolicited e-mails about your taxes. If you get an e-mail that appears to be from the IRS, it may be an attempt to steal your private information. Don’t click on any links in the message. Rather, forward the e-mail to phishing@irs.gov using the instructions at www.irs.gov.

IRS.gov Web site — Remember to use .gov when seeking the genuine IRS Web site. The address of the official IRS Web site is www.irs.gov. The IRS Web site contains a wealth of information for your tax planning and filing needs. Check out the latest tax changes on the site, and remember to e-file your tax return, which helps ensure you do not miss out on any tax deductions, credits and benefits.

Planning Your Income — Some taxpayers, such as the self-employed, may have some discretion regarding when they receive income. Properly deferring income until next year can lower your taxable income and tax bill this year. This strategy will, however, raise your tax bill next year. Publication 334, Tax Guide for Small Business, may be of help. And many taxpayers also have some control over their income via the sale of investments to incur a gain or loss. This is generally a key area of decision-making for investors. These decisions must be made and executed by Dec. 31 to be counted on a 2008 tax return. Publication 550, Investment Income and Expenses, for 2008, explains the rules.

Retirement Savings — Taxpayers have various options to save for retirement. You need to be mindful of their contribution deadlines and limits. For example, Dec. 31 is the deadline for contributions to a 401(k) plan, while April 15 is the deadline for IRA contributions. Taxpayers can get help from their 401(k) plan administrators where they work. Publication 560, Retirement Plans for Small Business, and Publication 575, Pensions and Annuity Income, may also help. You have more time to make contributions to individual retirement arrangements (IRAs) for a given tax year. You generally have until April 15 of the following year. Publication 590, Individual Retirement Arrangements, for 2008, can answer most questions.

New children — If you had or adopted a child in 2008, you should get a Social Security number for that child as soon as possible to ensure that you can include the child as a dependent on your 2008 return. Also, having or adopting a child in 2008 may mean you will receive a larger recovery rebate credit.

IRS Updates

IRS UPDATES:

1. Charge to increase for copies of tax returns

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Beginning Nov. 1, the fee for an exact copy of a previously-filed and processed tax return and all attachments will increase to $57.

The IRS can provide a tax return transcript for many returns free of charge. A transcript contains the information most mortgage companies and other lending institutions require for loan and employment verification purposes.

2. Address correction for ordering Federal Tax Deposit Coupons

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In the Oct. 1 edition of e-News for Small Businesses we included a link to Headliner 245 for information on ordering blank Federal Tax Deposit Coupons. The address included in the Headliner was incorrect.

The correct address is:

Internal Revenue Service
National Distribution Center
1201 N. Mitsubishi Motorway
Bloomington, IL 61705-6613

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3. Business closing? Watch SBTV.com for information

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There is more involved in closing your business than just locking the doors. Today’s SBTV.com daily news looks at a business’s final tax responsibilities.

Next Wednesday’s newscast features information on whether an activity is a hobby or a  business. 

Visit IRS’s partner page on the SBTV.com site for archived federal tax stories.

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4. IRS/SSA Employment Tax Update Webinar

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IRS and the Social Security Administration invite payroll professionals to attend a free Webinar on the latest employment tax filing information.

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5. Recent announcements for small businesses

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IR-2008-117, 2009 Inflation Adjustments Widen Tax Brackets and Expand Tax Benefits

IR-2008-118, IRS Announces Pension Plan Limitations for 2009

TD 9428, Final regulations relating to the treatment of open account debt between S corporations and their shareholders.

IRS Small Business: http://www.irs.gov/businesses/small/index.html

 

Small Business Tax Workshops, Phone Forums and Webinars http://www.irs.gov/businesses/small/article/0,,id=99202,00.html

 

“Recordkeeping for Small Business/Self Employed Individuals”

 

IRS Stakeholder Liaison presents:

 

National Phone Forum

 

 

“Recordkeeping for Small Business/Self Employed Individuals”

Date:  October 22, 2008

Cost: FREE

Location: The convenience of your home or office

This IRS phone forum is for

 

• Tax professionals
• Attorneys
• Payroll professionals
• Industry partners

 

 

Learn about recordkeeping for small business/self-employed individuals

 

• What books and records are
• Why books and records are needed
• Who shouldhave books and records
• How goodbooks and recordscan shorten an audit
• How long books and records should be kept

 

Earn Continuing Professional Education credit

 

• Enrolled agents receive one CPE credit for a minimum 50-minute participation from the start of the forum
• Other tax professionals may receive credit if the phone forum meets your organization’s or state’s CPE requirements
• To receive credit, register individually and use your PIN
• Call in using your individual phone line so your attendance can be verified
• Look for your Certificate of Completion by e-mail approximately one week after the forum. If you have met all requirements, you will receive your certificate automatically; there’s no need to follow up
• If you and others in your office do not require a CPE certificate, please have only one person register on the group’s behalf and use your speaker phone to dial in. This will maximize the number of lines available for other participants and help reduce costs.

 

                              

Sign up now (and no later than October 17, 2008)

 

• Select the time that works best for you

Note: Time zones shown are Daylight Saving Time.

 

CONFERENCE ACCESS CODE	EASTERN	CENTRAL	MOUNTAIN	PACIFIC
393508	10 a.m.	9 a.m.	8 a.m.	7 a.m.
125274	1 p.m.	Noon	11 a.m.	10 a.m.
725297	4 p.m.	3 p.m.	2 p.m.	1 p.m.

 

• Register at www.attevent.com by October 17, 2008. Reservations are limited, so register at the earliest date possible.
• You will receive a Personal Identification Number that you must use to join the conference.
• If you have never registered with AT&T for a prior phone forum, you will first need to click on create a profile.
• If you require special accommodations (for example, Braille, large print or interpreter services) please contact Shane Ferguson at nationalphoneforum@irs.gov.
• We will e-mail presentation materials on October 20, 2008. If you do not receive this e-mail by noon on October 21, e-mail us at nationalphoneforum@irs.gov to request the materials.

 

Dial in on October 22, 2008

 

Toll free:   1-866-216-6835

Toll:           1-913-227-1220

 

• Dial in 3 to 5 minutes before the scheduled time
• Enter your access code, then the pound (#) sign
• Enter your PIN, then the pound (#) sign
• Your line will be placed on hold until the conference begins

 

A question and answer period will follow the presentation. However, due to the public nature of the call, we will not be able to address specific client issues.

 

Questions? E-mail nationalphoneforum@irs.gov

                                      

 

It’s Not Too Late to Claim Your Economic Stimulus Payment: IRS Will Issue Checks Through End of Year

The last of the economic stimulus checks have been issued under the planned payment schedule, which was a timetable for tax returns that were filed and processed before April 15.

However, the Internal Revenue Service will continue processing tax returns and issuing economic stimulus payments for much of the year.

It is not too late to file a return to claim an economic stimulus payment. The IRS urges people to file by October 15 to ensure they receive a payment prior to year’s end. It can take up to eight weeks for the IRS to process the return and issue the payment.

For people who have no tax liability or no tax filing requirement, there is a minimum payment of $300 ($600 for married couples), plus the $300 for each qualifying child. To be eligible for the minimum payment, individuals must have at least $3,000 in qualifying income.

Qualifying income includes any combination of earned income, nontaxable combat pay and certain benefit payments from Social Security, Veterans Affairs and Railroad Retirement. The IRS is continuing to work with numerous state, local and national partners to reach people who have no tax liability or no tax filing requirement and to help them file a simple Form 1040A.

Below are some links to IRS.gov and the U.S. Treasury regarding economic stimulus payments:

Also visit www.treas.gov to see the Treasury News Release Cumulative Economic Payment Totals.
 
Remember that for the genuine IRS Web site be sure to use .gov.  Don’t be confused by internet sites that end in .com, .net, .org or other designations instead of .gov. The address of the official IRS governmental Web site is www.irs.gov

Links:

• Haven’t received your payment yet?
• Form 1040A-3 for retirees, disabled veterans and others who normally don’t file a return
• Economic Stimulus Payment Information Center