Our network

Participating in the Sharing Economy Can Affect Taxes

In 2017, many taxpayers use their phones and computers to provide services and sell goods. This includes the use of sites and apps to rent a home to travelers, sell crafts, or to provide car rides. Taxpayers who do this may be involved in the sharing economy. Participating in the sharing economy may affect a person’s taxes. These taxpayers can visit the Sharing Economy Tax Center on the IRS website to find resources that can help them meet their tax obligations.

Here are six things taxpayers should know about how the sharing economy might affect their taxes:

Taxes. Sharing economy activity is generally taxable. This includes:

Community Sponsors

Family Owned and Run Since 1965
Are you interested in promoting your business to local customers?

Five Things to Know about Estimated Taxes and Withholding

With 10 million taxpayers a year facing estimated tax penalties, the IRS offers some simple tips to help prevent a surprise at tax time.

People pay taxes on income through withholding on their paycheck or through estimated tax payments. Taxpayers who pay enough tax throughout the year can avoid a large tax bill and penalties when they file their return.

Taxpayers should make estimated tax payments if:

  • The tax withheld from their income does not cover their tax for the year.
  • They have income without withholdings. Some examples are interest, dividends, alimony, self-employment income, capital gains, prizes or awards.

Here are five actions taxpayers can take to avoid a large bill and estimated tax penalties when they file their return. They can:

How to Know if the Knock on Your Door is Actually Someone from the IRS

Every Halloween, children knock on doors pretending they are everything from superheroes to movie stars. Scammers, on the other hand, don’t leave their impersonations to one day. They can happen any time of the year.

 People can avoid taking the bait and falling victim to a scam by knowing how and when the IRS does contact a taxpayer in person. This can help someone determine whether an individual is truly an IRS employee.

 Here are eight things to know about in-person contacts from the IRS.

Four Things to Know about Taxes and Starting a Business

 

New business owners have tax-related things to do before launching their companies. IRS.gov has resources to help. Here are some items to consider before scheduling a ribbon-cutting event.

Choose a business structure

When starting a business, an owner must decide what type of entity it will be. This type determines which tax forms a business needs to file. Owners can learn about business structures at IRS.gov. The most common forms of businesses are:

  • Sole Proprietorships
  • Partnerships
  • Corporations
  • S Corporations
  • Limited Liability Company

Determine business tax responsibilities 

The type of business someone operates determines what taxes they need to pay and how to pay them. There are the five general types of business taxes.

Community Sponsors

Are you interested in promoting your business to local customers?
Family Owned and Run Since 1965

Tax Pros Must Take Steps to Protect Data from Cybercriminals

More and more, cybercriminals target tax professionals looking to access taxpayer data. These criminals use the information to file fake tax returns. Many tax pros think it can’t happen to them, but it can – and it does. The IRS reminds all tax preparers they have a responsibility to protect and secure sensitive data.

To prevent data theft, the IRS partnered with state tax agencies and members of the tax industry to create the Security Summit. Through this partnership, they are fighting identity theft. While they make progress, criminals need more data to file fraudulent returns. This in turn makes tax professionals, payroll professionals, and employers targets of identity thieves.

Security Summit partners remind tax professionals to take all possible steps to secure data. They can:

IRS Has Options to Help Small Business Owners

Small business owners often have a running list of things to do. These include deadlines, sales calls, employee issues, banking, advertising – and taxes. The IRS can help with the last one.

Here are seven resources to help small businesses owners with common topics:

Online Courses Help Charities Understand Tax Issues

Charitable organizations have 24/7 access to online courses on Stay Exempt, an IRS website. The IRS created this site to help charities better understand tax issues that affect tax exempt organizations. It offers courses on a wide range of topics that can help these organizations obtain and maintain their tax-exempt status.

The online courses average less than 30 minutes. There is information to help guide an organization through the application process. They can also find courses that cover how to fully meet annual filing requirements. Aside from 501(c)(3)s, there are also courses geared to other 501 organizations, including veterans organizations, social clubs and fraternal organizations.

Some of the courses available include: