Know How To Distinguish Independent Contractors

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Know How To Distinguish Independent Contractors

Jun 4, 2012 Posted by Dolly No Comments

Independent contractors are those people or businesses who provide freelance services to other companies. As they are not qualified as employees of a company, the independent contractors are not liable to enjoy any employment taxes or benefits. As employers can save a lot on employee’s taxes and other benefits with independent contractors, they classify many employees as independent contractors to save money on payroll taxes. To stop this practise there are certain factors that can distinguish an independent contractor from an employee.

Understanding The Concept Of Independent Contractors

 

Having a clear understanding of the concept of independent contractors is the first element to distinguish between them and an employee. An independent contractor can be a person or a company that offers its services to another company. What makes them different is that these contractors follow their own schedule and work as per their own free will. So the employer company has a limited hold on these independent contractors. The employer companies cannot regulate which jobs the contractors accept or how much pay they will demand and when they will work on a certain project.

 

Another point of difference between independent contractors and employees is that, the independent contractors will usually bring in their own supplies, or have some kind of investment in equipments. The employer company also is not liable to provide any insurance or any compensation to them.

 

Determining Ways To Identify Independent Contractor

As hiring independent contractors relieves the employer of giving payroll taxes and other liabilities, many companies list a portion of their employees as independent contractors to save taxes. Some companies also outsource their work to the independent contractors to achieve the same goal.  Therefore, the IRS has the knowledge of few factors with which they can identify a contractor from an employee.

 

  1. The first thing that IRS notices is the way the employers exerts his authority on the worker. If it is an independent contractor the employer will only give details about the work but if it is an employee, the employer can exercise more control over the way he works, how it is ultimately carried out and his performance. So if the employer is giving out a more defined and whole set of instructions the worker is considered as an employee. Whereas if the instructions are limited and the worker has the freedom to execute a project on his own terms then he is considered an independent contractor.
  2.  IRS will consider any worker to be an employee if the employer can regulate the way the worker gets paid or if it is the employer who provides all the tools and supplies. Whereas if the worker is paid in accordance to the job done, can offer his services to other companies at the same time or has a considerable amount of investment on the supplies used for the job then the worker is considered as an independent contractor. In addition, if the worker faces profits or losses in a certain work then he is an independent contractor.
  3. If the worker and the employer has a written contract and if the employer is liable to pay insurance, casual leave and sick leave then the worker is considered to be an employee. Another way to identify an independent worker is to check if the worker expects to work for the employer only for a specific period of time then the worker can be classified as an independent contractor.

 

These are the factors through which the IRS distinguishes an employee from an independent contractor. It is crucial for the employer to classify his workforce properly as miscalculation can make one liable for penalty and payment of all possible dues.

 

 

 

Road Block To Retirement

May 20, 2012 Posted by Sanjiv No Comments

Have you ever wondered if you may hit a road block in your journey to retirement ?

I will cover some basic strategies that can help you limit the damage caused by an unexpected event or change of lifestyle.

A Protracted Illness | 21st Century Major Crisis

Nursing home care is super expensive both in India and United States.   Nursing home cost can exceed well over $250/day in US.  In a recent phone call with Kiser, I was told that paying $500/night for stay at hospital is a great deal. Well – may be for Kiser, not for me.

If your family has a history of health problem than you should consider long term care insurance.   At least have a plan in place to deal with such situation.  You don’t want to end up spending all your retirement saving on nursing home.

Starting or Selling a Business 

Having a second stream of income during retirement can be very helpful.  Consider buying a business that has long history of profitable years and has a good management team in place.   Real estate management company and good running restaurants can be great investments.

You want to delay collecting from social security as much as possible.  Consider using income from roth IRA, investment and businesses during early part of your retirement.

Divorce : Don’t even think about it

Divorce can cause all sorts of problem including major financial issues.  You can do some damage control by purchasing annuity but try to avoid divorce as much as possible.

Taking care of Kids or Grand Kids

Supporting kids and grand kids during retirement can take big chunk of your savings.  Carefully plan your retirement with your CPA to see how much you can spare to help your kids.  You can also consider buying life insurance policy or funding a 529 college saving plan for your grand kids.

Volatile Markets 

Retirement is not the right time to invest in volatile markets.  You want to play safe bets but talk to a financial adviser who can find safe bets with good returns.

 

Thinking about retirement ? Here are few questions you can ask your Financial Advisor ?

  • Which income should i draw from first?
  • What other cost should i consider?
  • As I get closer to retirement, how should I adjust my allocation ?
  • Which options for covering health care costs make the most sense for my situation?
  • How often should I make changes to portfolio?

Tax Deductions for Independent Contractor or 1099

May 13, 2012 Posted by Sanjiv No Comments

Starting out a consulting business can be very lucrative. However, it can also result in heavy tax bill you do not organize your income and expense properly.   So, how do you organize your income and expenses?

You can start by opening a different bank account.  Do not mix your business bank account with your personal bank account. All business related income should come to this account and all expenses should be paid from this account.   Your client will send you form 1099-misc at the end of the year.  IRS will also reactive a copy of this 1099.  That being said your total business income should be greater or equal to the amount listed in 1099.  You may get an automated customer generated audit if you report total income less than the amount listed on your 1099.  Keeping a separate bank account will help in calculating total business income and you act as proof in case of audit.

Now you need to deal with your business expenses.   Easiest way to do this is to categories your business expenses.   We recommend you use same or similar categories listed on schedule C.  This will help during tax time.  Now, every time you pay a bill, you simply need to enter that transaction in the correct category.  You can use a simple spread sheet, financial software or you can use shoe-box.  Most CPA firms also provide bookkeeping services. For example, you can simply send us your bank statement at the end of the month and we can do the complete bookkeeping. We will assign each expense into an appropriate categories based upon its tax implication.

What are some of the most popular business expense categories ?

  • Advertising – All expenses paid for online marketing or print marketing including business cards or flyers.
  • Consultation Fees – Fee paid to professionals like attorney, CPA, or marketing professionals.
  • Insurance Cost –  Business Insurance Expenses including life, property & casualty, or business insurance
  • Interest Cost – Interest cost of your business loans. You can include fees and other related cost.
  • Office expense – Any supply or equipment you purchase for your business operation.
  • Rent or lease other business property – Cost of operating your business office.
  • Repairs and maintenance – Include all cost related to your business only.
  • Travel – the cost of traveling to a business related event like convention, meeting, or business trip
  • Meals and entertainment – You can include meals and entertainment expenses related to your business.
  • Utilities –electricity, gas, telephone, internet
  • Other expenses – such as Dues & Subscriptions, Web development, and Business telephone expenses.

 

Health Insurance expenses:  Premiums paid for your health insurance are tax deductible.   You can deduct the full cost of health insurance premiums on form 1040 but you must have an Income from you business.   You can deduct the health insurance cost event if you run into losses but it has to be reported different.  Consult with your CPA to ensure you are reporting the deduction properly.

Still have a question about your business expense?  Leave us a comment or call our office at 510-825-7563

What You Must Know About 2012 Tax Challenges

Apr 2, 2012 Posted by Sanjiv 1 Comment

What You Must Know About 2012 Tax Challenges

2012 presidential election summons the close of all tax benefits introduced by George Bush. This would usher in an unavoidable clash because of the new tax rules, many deductions and unchanged tax rates.

It is indeed tough to prepare a perfect tax return sheet amidst changing rules and implementation of stringent penalties. Therefore in this article we are to take a look at how to tackle the most common filing challenges

Newly implemented Capital profit rules

Worried about how to calculate taxes on you invested income this year? Heres the key rule: bought stocks after Jan 1, 2011 then you are not eligible to count your cost basis or the tax exempt investment amount. Your broker will help you calculate the amount as per your preferred method. Mostly brokers send notice of FIFO; First-in and First-out which reports your selling off older shares. Before filing or tax return analyze 1099 and ask your broker to mend all errors. Talking about 1099, Roman Ciosek, wealth management assistant at HighTower’s Strata is advising customers to slow down in their tax filing process. According to Ciosek there will be a number of amendments on the 1099s. However if you have sold your earlier shares whether willingly or because your broker advised you then you cannot alter your cost-basis.

$1billion in unclaimed tax refunds

Apart from what is discussed above, everything more or less remains in place. You can jolly well counterbalance your gains with losses. While doing so first take into account the long term (considered over a year) profits on assests that incurred tax at or over 15% and balance them with your long term losses; then balance short term gains taxed as minimum income with short term losses. Having calculated the long term accounts and the short term income separately, now you are required to match your long term records to the short term report.  If your loss margin is high considering deducting a little near to $3000 from your income. This way you will be able to manage all taxable amount the next year as well.

How to plan: when you proceed with tax filing you can choose to toggle between accounting ways. Your common options are “last-in”, “first-out” & “Specific share identification”.

Before using FIFO it is a better idea to select particular stocks / shares that you want to sell. This is more appropriate when you have pitched in at over-time stock selling program and have derived your biggest profit out of the initial batch. On the other hand if you have great many capital losses with which you can counterbalance your capital profits then 2012 is a good year to enjoy good number of tax benefits.

This calculation will be same when accounting for mutual funds, dividend-reinvestment plans, exchange-traded funds and 2013 bonds. If you haven’t received any mails yet from your broker’s company, then wait till you get your options to choose a particular method of calculating your tax amount. Don’t treat the paper work casually.

Retirement plans

Filing challenge: If you have plans to finance Roth IRA for 2011, then better have it done before April 17, 2012. IRA is a tax deductible scheme which will provide you a tax concession on your investment, but will calculate taxes on withdrawal of money from this traditional plan. Roth requires you/other liable people to pay upfront taxes. This is one reason why the Roth is considered good investment idea for long-term by most tax-payers.

The changes were introduced in 2010 that everyone could convert their IRA to Roth irrespective of income group. This is indeed facilitating unless you have an exorbitant tax bill. However to calculate tax-return for 2012 you have to abide by the conversions introduced in 2011.

IRS warns of ‘dirty dozen’ tax scams

To tide over your 2010 tax payments if it took you two years then you are required to clear all due amounts this filing season 2012. The time is ticking already and you have only until the filing day to undo 2011 alterations.

How to plan: open or reinvest in IRA for 2012 and also transfer an existing IRA into Roth. Such conversion will help you trim down higher tax rate during your retirement days (than what you have to pay now). For those that were planning to go ahead with conversion plans this is the right time to take the call. If the conversion is done before the Bush tax laws expire then you won’t be required to pay more than 35% on the upturn, which by the year end can go up much higher than what is anticipated.

Home selling: Not a very good idea

Filing challenge: If you are happy to have earned much after selling off your house then wait, your profit might as well come under taxable charges. For single home sellers anything above $250,000 will be taxable. For married couples the same rule applies on a marginal amount of $500,000.

Wondering what happens if you sell your house at an under-rated price? You will be considered unlucky, simply because you can’t file for tax-return on the initial amount / cost of your residence. However if you lent your house out on a mortgage and the contract period was cut short by reconstruction/ restoration purpose  then you might as well get a tax-break. Such deals are also applicable on conditions such as short-notice sale or when losing your home to foreclosure. This type of tax-breaks means liberation from paying due debts.

Should you buy a home in 2012?

How to plan: This tax-break plan closes this year 2012. So in case you want a tax break, then better not waste time.

Education tax cuts

Filing challenge: the American government though has been lenient with educational grants; however some important scholarships are schemed as tax-cut loans. Sorting these educational tax cuts is difficult. Some of the variety of schemes are the lifetime learning credit taxable over $2,000 per return, the American opportunity credit tax-free till $2,500 per undergraduate student, the tuition and fees deduction $4,000 max for a single student per family. However you can only file one application for education tax cut per year.

Get help to solve your tax doubts

According to Justine Ransome, national tax officer at Grant Thornton the American opportunity credit is the biggest money saver scheme. Taxes are sorted as per income brackets/slabs; but American Opportunity Credit provides the highest tax-cut, $180,000 for married couples and half the amount for singles.

How to plan: Bad luck the American opportunity credit expires this year but well you will have various simpler choices the following year.

Health care write-offs

Filing challenge: health care costs will be deductible at higher rates. This means that you can file for only those that surpasses 7.5% of you Adjusted Gross Income. But it seems likely that increasing medical costs can wrap the matter neat and tidy. Allison Shipley, PricewaterhouseCoopers’ principal of personal financial services opines that if a person’s income is drastically reduced and the medical expenses increases on the other hand, then the individual can produce all medical expense bills and enjoy tax-cuts.

It’s saving time:

Heres what the tax-cut expenses include: general physician and dentist’s bills , doctors prescription, medications, specs, hearing kits, wheel-chairs, patient’s transportation, consultation fees, care-giver charges and a few insurance costs.

Don’t Miss Out on the Small Business Health-Care Tax Credit

Mar 27, 2012 Posted by Sanjiv No Comments

I am sure you won’t mind taking some more business tax credits.   Here is another tax credit, if you are a small business employer with less than 25 employees who are earning average wage of less than $50,000 a year and you pay at least 50% of the employee’s insurance premiums.

This tax credit is targeted towards tax exempt organizations and small businesses.  This credit allows small business owners to offer health insurance for the first time.

Here is the scope of health insurance tax credit:

  • You take this credit as part of the general business credit.  You can use the form 3800 and any unused general Business Credit, would be included with the tax return.  This unused credit can be carried back one year and then forward for up to 20 years.
  •  You must have less than 25 full time employees.  Number of employees is calculated by calculating total number of hours and total number of employees.
  • Average annual wage should also be less than $50,000.  Once again, this is calculated based upon FICA wages and total number of full time employees.
  • Tax credit is for Small Business Owners or Tax-Exempt Organization.
  • Businesses who can’t take credit for 2011 may be eligible to take advantage in future years.  Small employers can claim this credit between 2010 to 2015.

Now the question you are waiting for, How much tax credit?

Maximum credit for small business employers is 35% of premiums paid.  For tax exempt employers the maximum tax credit is 25% of premium paid.

Want more good news?

Beginning in the year 2014, the tax credit will go up to 50% of premiums paid and 35% for tax exempt organizations.

Please note tax credit is on the amount you pay for health care premiums.  Credit is not on employee paid premium.   With up to 50% tax credit, I am sure you would love to offer healthcare for your employees.

Want to take credit this year? Call our office for an appointment.

Do You Have Unclaimed Property Waiting For You? Check Now.

Feb 29, 2012 Posted by Sanjiv No Comments

What happens to all the checks that are sent by companies but never deposited?  Can companies keep that money in their bank account and use it for something else.  Answer is No, they can’t.

Good news is that there is a law to prevent holders of Unclaimed Property from using your money and taking it into their business income. This law gives the State an opportunity to return your money and provides California citizens with a single source, the State Controller’s Office, to check for Unclaimed Property that may be reported by holders from around the nation.

According to the recent number I collected, The State of California is currently in possession of more than $6.1 billion in Unclaimed Property belonging to approximately 17.6 million individuals and organizations.  Yes, this is not a typo. It is $6.1 billion dollars.

The State acquires unclaimed property through California’s Unclaimed Property Law, which requires “holders” such as corporations, business associations, financial institutions, and insurance companies to annually report and deliver property to the State Controller’s Office after there has been no customer contact for three years. Often the owner forgets that the account exists, or moves and does not leave a forwarding address or the forwarding order expires. In some cases, the owner dies and the heirs have no knowledge of the property.

The most common types of Unclaimed Property are:

  • Bank accounts and safe deposit box contents;
  • Stocks, mutual funds, bonds, and dividends;
  • Uncashed cashier’s checks or money orders;
  • Certificates of deposit;
  • Matured or terminated insurance policies;
  • Estates; and
  • Mineral interests and royalty payments, trust funds, and escrow accounts.

The Unclaimed Property law was enacted Please visit the Unclaimed Property Database to see if the State Controller’s Office is holding Unclaimed Property for you. Learn more about the Unclaimed Property Program at State Controller John Chiang’s website.

17 Small Business Tax Credits

Feb 12, 2012 Posted by Sanjiv No Comments

President Barack Obama is all set to boost the country’s economic pillar; How? Well surprising but yes he lent a patient hearing to the grudges and grievances of over thousand small business entrepreneurs through the columns of Advise the Advisor and Wining the Future Small Business Forum this week.

 Several questions poured in. Some directly questioned Obama’s administrative policy regarding cuts on tax frills. Twitter found one Lindsmith asking Whitehouse about the 17 tax policies that Obama passed as law. This article contains a pertinent explanatory, direct from the mouths of the government’s official financial consultants. In this article we explain the tax laws of President Obama pertaining to small business and what effect the change has had on it.

 Ever since Obama joined the government’s prestigious office in 2009 he put into effect 17 tax laws that promised tax-incise and increase of credits for all small business entrepreneurs.  The three key legislative acts that pronounce tax-cut terms are the American Recovery and Reinvestment Act, the HIRE Act and the Affordable care Act.

Each of the Acts covers as many as eight small business tax-cut variations that have had a significant impact on the small business sector. To name a few are:

  • Exempting 75% on capital gains (small business establishments)
  • Health insurance tax-credit for employees (small business establishments)
  • Tax-credit for newly recruited employees (Those that were unemployed for over 2 months)

 Again in September 2010 the President signed and passed the Small Business Jobs Act which contained another eight laws on tax-slash and tax-credit. The benefits of the Small Business Jobs Act are as follows:

  •  Extending small business expense limit to $500,000 (so far this is the highest amount granted)
  • Simplification of rules when applying for business phone usage deduction
  • Tax-exempt on medical costs for the self-employed
  • Greater tax-exempt for start-up businessmen
  • Expelling tax imposition on capital gains (small business establishments)

 In the same year winter, a tax bill was passed under Obama Administration which furthered the benefits and stated that all businessmen, large and small, could use 100% of capital gains to propel new business investment plans. This plan was however limited to the next seasonal winter of 2011. Also the period of tax-exempt on capital gains for all small business investments was extended until the end of 2012 and well the good news is that the president suggests that he is trying to turn this policy into a permanent one. This would mean to be a special incentive for the small business sector and could function as the much required boost for the economy that is struggling under the current recessionary scenario.

 In fact experts openion that the attention paid to small business entrepreneurs is just one of the many ways that will help the government strengthen its position by securing the economic backbone of the country- small business establishments. Obama is therefore all keen to win the future with the flourish of small business centers and thus he is introducing these measures in the tax rules pertaining to small business sector. Well his actions are heartily acknowledged and supported as long as he keeps the government running with the conscience that government is of the people by the people and for the people.

 In the list given below we enumerate Obama’s 17 small business tax-cuts:

 Tax-laws as granted by, HIRE Acts, the Affordable Care Act and the Recovery Act:

1. A New Small Business Health Care Tax Credit

2. A New Tax Credit for Hiring Unemployed Workers

3. Bonus Depreciation Tax Incentives to Support New Investment

4. 75% Exclusion of Small Business Capital Gains

5. Expansion of Limits on Small Business Expensing

6. Five-Year Carryback of Net Operating Losses

7. Reduction of the Built-In Gains Holding Period for Small Businesses from 10 to 7 Years to Allow Small Business Greater Flexibility in Their Investments   

8. Temporary Small Business Estimated Tax Payment Relief to Allow Small Businesses to Keep Needed Cash on Hand

 

 Tax-Laws as granted by the Small Business Jobs Act:

9. Zero Capital Gains Taxes on Key Investments in Small Businesses

10. The Highest Small Business Expensing Limit Ever– Up to $500,000

11. An Extension of 50% Bonus Depreciation

12. A New Deduction for Health Care Expenses for the Self-Employed

13. Tax Relief and Simplification for Cell Phone Deductions

14. An Increase in The Deduction for Entrepreneurs’ Start-Up Expenses

15. A Five-Year Carryback Of General Business Credits

16. Limitations on Penalties for Errors in Tax Reporting That Disproportionately Affect Small Business

And Tax-law as under the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act:

17. 100 Percent Expensing

How much tax can you save with so many tax credit ? Well, you need to contact your CPA to find this answer.

"FSA" Plans Say "No" To Over-the-counter Medications

Jan 22, 2012 Posted by Sanjiv 1 Comment

FSA/HSA/HRA Plans Are Changing

Health Industry including Insurance and Laws is rapidly changing. One such change can immeditely impact you. 

Starting Jan. 1, 2011,  you can no longer get reimbursement from a Flexible Spending Account (FSA), Health Savings Account (HSA), or Health Reimbursement Account (HRA)  for over-the-counter (OTC) medications.  This is a big change because many consumers were using health savings accounts for generic drugs like allergy medication and other medical supplies.   This change may make you think twice about signing up for such kinds of health saving accounts.  Now you can only seek reimbursements for drugs purchased with with a prescription.

In addition to that,  the excise tax for non-qualified HSA withdrawals doubles to 20%. Beginning Jan. 1, 2013, employee contributions to health FSAs will be limited to $2,500 per year, with future increases to allow for inflation.

 Here are some link For More Information:

Record Retention

Dec 28, 2011 Posted by deepak No Comments

Tax Record Retention Guide For All

April 15 has come and gone and another year of tax forms and shoeboxes full of receipts is behind us. But what should be done with those documents after your check or refund request is in the mail?

Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This is called the “three-year law” and leads many people to believe they’re safe provided they retain their documents for this period of time.

However, if the IRS believes you have significantly underreported your income (by 25 percent or more), or believes there may be indication of fraud, it may go back six years in an audit. To be safe, use the following guidelines.Tax Record Retention

Business Document To Keep For One Year

  • Correspondence with Customers and Vendors
  • Duplicate Deposit Slips
  • Purchase Orders (other than Purchasing Department copy)
  • Receiving Sheets
  • Requisitions
  • Stenographer’s Notebooks
  • Stockroom Withdrawal Forms

Business Documents To Keep For Three Years

  • Bank Statements and Reconciliation’s
  • Employee Personnel Records (after termination)
  • Employment Applications
  • Expired Insurance Policies
  • General Correspondence
  • Internal Audit Reports
  • Internal Reports
  • Petty Cash Vouchers
  • Physical Inventory Tags
  • Savings Bond Registration Records of Employees
  • Time Cards For Hourly Employees

Business Documents To Keep For Six Years

  • Accident Reports, Claims
  • Accounts Payable Ledgers and Schedules
  • Accounts Receivable Ledgers and Schedules
  • Cancelled Checks
  • Cancelled Stock and Bond Certificates
  • Employment Tax Records
  • Expense Analysis and Expense Distribution Schedules
  • Expired Contracts, Leases
  • Expired Option Records
  • Inventories of Products, Materials, Supplies
  • Invoices to Customers
  • Notes Receivable Ledgers, Schedules
  • Payroll Records and Summaries, including payment to pensioners
  • Plant Cost Ledgers
  • Purchasing Department Copies of Purchase Orders
  • Sales Records
  • Subsidiary Ledgers
  • Time Books
  • Travel and Entertainment Records
  • Vouchers for Payments to Vendors, Employees, etc.
  • Voucher Register, Schedules

Business Records To Keep Forever

While federal guidelines do not require you to keep tax records “forever,” in many cases there will be other reasons you’ll want to retain these documents indefinitely.

  • Audit Reports from CPAs/Accountants
  • Cancelled Checks for Important Payments (especially tax payments)
  • Cash Books, Charts of Accounts
  • Contracts, Leases Currently in Effect
  • Corporate Documents (incorporation, charter, by-laws, etc.)
  • Documents substantiating fixed asset additions
  • Deeds
  • Depreciation Schedules
  • Financial Statements (Year End)
  • General and Private Ledgers, Year End Trial Balances
  • Insurance Records, Current Accident Reports, Claims, Policies
  • Investment Trade Confirmations
  • IRS Revenue Agents’ Reports
  • Journals
  • Legal Records, Correspondence and Other Important Matters
  • Minutes Books of Directors and Stockholders
  • Mortgages, Bills of Sale
  • Property Appraisals by Outside Appraisers
  • Property Records
  • Retirement and Pension Records
  • Tax Returns and Worksheets
  • Trademark and Patent Registrations

Personal Document To Keep For One Year

  • While it’s important to keep year-end mutual fund and IRA contribution statements forever, you don’t have to save monthly and quarterly statements once the year-end statement has arrived.

Personal Documents To Keep For Three Years

  • Credit Card Statements
  • Medical Bills (in case of insurance disputes) 
  • Utility Records
  • Expired Insurance Policies 

Personal Documents To Keep For Six Years

  • Supporting Documents For Tax Returns
  • Accident Reports and Claims
  • Medical Bills (if tax-related)
  • Property Records / Improvement Receipts
  • Sales Receipts
  • Wage Garnishments
  • Other Tax-Related Bills

Personal Records To Keep Forever

  • CPA Audit Reports
  • Legal Records
  • Important Correspondence
  • Income Tax Returns
  • Income Tax Payment Checks
  • Investment Trade Confirmations
  • Retirement and Pension Records

Special Circumstances

  • Car Records (keep until the car is sold)
  • Credit Card Receipts (keep until verified on your statement)
  • Insurance Policies (keep for the life of the policy)
  • Mortgages / Deeds / Leases (keep 6 years beyond the agreement)
  • Pay Stubs (keep until reconciled with your W-2)
  • Property Records / improvement receipts (keep until property sold)
  • Sales Receipts (keep for life of the warranty)
  • Stock and Bond Records (keep for 6 years beyond selling)
  • Warranties and Instructions (keep for the life of the product)
  • Other Bills (keep until payment is verified on the next bill)
  • Depreciation Schedules and Other Capital Asset Records (keep for 3 years after the tax life of the asset)

Personal Tax

Dec 28, 2011 Posted by deepak 9 Comments

Personal Tax Return Services

Tax Return Preparation:

Our tax practice has been serving clients in all of the US and India Tax Matters. You can depend on us for all kinds of tax services like filing your annual tax returns or negotiating with the Internal Revenue Service to reduce your tax liability.

Foreign Account Reporting:

Have a bank account in India, Canada or some other country? Don’t forget to file the proper disclosure to ensure compliance with new laws.  Let our professionals help you navigate the complicated laws.  We have expertise in filing returns with foreign accounts and assets.  We can help you bring your money from another country to the United States or help you file a proper return.

Tax Planning Services:

Paid too much in taxes? There are many things you can do that can help you reduce your tax liability.  You can consult with our office to learn more about your options. Simply bring your last couple years of tax returns along with your this year projected income.   Based on this information and your current situation,  our tax professionals can help you find ways to reduce your taxes.

Financial Consulting:

We cover many areas in financial consulting including 401k, IRA, Retirement, Education, Stocks, Bonds, Home, Business, Rental, Buy, Lease and Insurance. We take account of all your past, current and future financial transactions to come up with a plan that can help you achieve financial stability and reduce your tax liability.

Accounting Services:

You can count on Sanjiv Gupta CPA firm for all sort of accounting service.  We can help you get your books in order and help you prepare for coming tax time.