Did You Collect the Needed W-9s?

Article Highlights:

• The IRS Form W-9 is used to obtain independent contractors’ tax ID numbers.
  
• Tax ID numbers are required when filing 1099s.
  
• 1099-MISCs must be issued to independent contractors that are paid $600 or more during the year for performing services for a trade or business.

If you used independent contractors to perform services for your business or trade, and you paid them $600 or more for the year, you must issue them a Form 1099-MISC to get the deduction for their labor and expenses and avoid potential penalties. (This requirement generally does not apply to payments made to a corporation. However, the corporation exception does not apply to payments made for attorney fees and for certain payments for medical or health care services.)

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Tax Pro Plus has MOVED!

 

Tax Pro Plus

11607 Pico Blvd.

Los Angeles, CA 90064

DIRECTIONS

310-827-4829

Tax Pro Plus Inc. New Year's Savings - Coupons for our Returning Clients

It is that time a year again - Tax Season!  We have some exciting news - we moved our offices downstairs.  For those of you that hated the stairs, you no longer have to climb them.  We are in the same building, just at the back in Unit 3.  We have a huge sign, so it should be easy to find.  Our new address is 3754 Motor Ave #3, Los Angeles, CA 90034.

We still have our TOP 10 CLUB, where we reward our clients for recommending us.  The client with the most referrals gets $300; the other top 9 clients get $100.  Remember to tell your friends.  Last year we had a tie and split the money 4 ways; our winners were Monique Watts, Renee Ota, David Glazov and, Nuvia Cifuentes.  CONGRATULATIONS everyone and thanks for the referrals!

Usually we send out a little flyer, but this year we are emailing them with a coupon.  If you would like to save some money, we are offering an early bird discount of 10% for returns started before February 15th.  If you can't get in before February 15th, we will give a discount of 5% to those that either drop off, mail, or email their documents. These discounts are for returning clients only, not for new clients.  If you are unable to get into the office, we can EVEN pick up and deliver.

We at TAX PRO PLUS, INC. wish you and your family a very happy and healthy New Year.

Sincerely,

Vicki Knight, EA

George Keck, EA

Kathy Igoe, CTEC

Save 10% on Tax Returns submitted before February 15th.  Only valid for returning clients.  Coupon must be mentioned when making appointment, printed and presented in person. Coupon is non-transferable and has no cash value.  Maximum of one coupon per person.

Offer Expires: Wednesday, February 15th, 2012

Save 5% on Tax Returns dropped off, mailed or emailed to us.  Only valid for returning clients.  Coupon must be presented with documents. Coupon is non-transferable and has no cash value.  Maximum of one coupon per person.

Offer Expires: Saturday, April 14th, 2012

Tax Pro Plus Small Business Winter Tax Tips - Employee or Independent Contractor?

This classification determines if payroll taxes are required.

For some business owners, determining whether a worker is an employee or an independent contractor can be tricky. Generally, you must withhold income taxes, withhold and pay social security and Medicare taxes and pay unemployment tax on wages paid to an employee. However, you don’t generally have to withhold or pay any taxes on payments made to independent contractors.

There is a misconception that you may be able to choose which classification works best for your company. In reality, however, the facts and circumstances impose the worker status. In determining whether the person providing a service is an employee or an independent contractor, you must consider all information that provides evidence of the degree of control and independence. You’ll need to answer these four questions:

1. Does the company control or have the right to control what the worker does and how the worker does his or her job?

2. Are the business aspects of the worker’s job controlled by the payer? Examples include how a worker is paid, whether expenses are reimbursed and who provides tools/supplies.

3. Are there written contracts or employee-type benefits like a pension plan, insurance, vacation pay?

4. Will the relationship continue and is the work performed a key aspect of the business?

Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. No set number of factors makes the worker an employee or an independent contractor and no single factor stands alone in making this determination. The concept is to look at the entire business relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination.

If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker. File a Form SS-8 with the IRS if the factors for determining worker status remain unclear.

Tax Pro Plus - Tax Tips Winter 2010

At Tax Pro Plus, we take the stress out of taxes. Enjoy these useful Winter 2010 tax tips including answers about dependents, divorce, first time home buyer credit, gift giving, non-business energy credit, deductible IRAs, Roth conversions and more!Tax Pro Plus Tips Winter 2010

Tax Pro Plus Tips - Health Savings Account

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Tax Pro Plus Free Small Business Seminar

Tax Pro Plus Inc.
"We take the stress out of taxes!"

~

Starting a business?

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Wednesday, May 26th
6:30pm - 9:30pm

Veteran's Memorial Auditorium

4117 Overland Ave.

Culver City, CA 90230

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Tax Pro Pluc Inc.

email: TaxProPlusInc@aol.com

phone: 310-827-4829

Tax Pro Plus - Tax Tips: Winter 2009/2010

Tax Pro Plus

Money Back for New Vehicle Purchases

Taxpayers who buy certain new vehicles in 2009 can deduct the state and local sales taxes they paid. The American Recovery and Reinvestment Act of 2009 (ARRA) provides a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles through 2009. The deduction is available regardless whether a taxpayer itemizes deductions on Schedule A. Purchased before February 17, 2009 are not eligible for the special deduction. Purchases must be made prior to January 1, 2010.

The deduction is limited to the tax on up to $49,500 of the purchased price of an eligible motor vehicle. The deduction is phased out for joint filers with modified adjusted gross income between $250,000 and $260,000 and other taxpayers with modified AGI between $125,000 and $135,000.

2009 Summer Tax Tips from Tax Pro Plus

Tax extensions are due for individuals on October 15th, 2009

Corporation extensions are due on September 15th, 2009

State of California is requiring that corporations pay estimated taxes.

First Time home buyers get a credit of up to $8000 (first time home buyers are people that haven't had a house in the last 3 years). Credit is good for houses purchased prior to December 1st, 2009.

Taxpayers can get a credit from the sales that they paid for a new car purchased this year.

Checks for $250 are going out to Social Security receipents which is part of the stimulus package.

Individual taxpayers are getting their stimulus money in their monthly checks. Starting in April their checks should have gone up about $15 each week.

We also help our clients pay less taxes we make suggestions to small businesses that they may need to be incorporated and we can help clients go through this process.