Tag: Sanjiv Gupta


Let Sanjiv Gupta File Your Return Via eFile

Sanjiv Gupta CPA - 8 years ago
What is e-File? During the 1980’s the concept of e-filing was not at all a known term. It was after six years since then that it gradually started getting attention as 25000 returns were e-filed in the USA. To put it in simple terms e-file stands for Electronic Filing or sending of income tax returns through the internet to the IRS or state tax authority. The whole thing can be operated through computers as there is free tax software that contains the complete format of federal e-files. Advantages of e-files: There are several advantages of e-file:When e-filing is done through an electronic process, the tax data and details of tax returns of taxpayers are transferred directly to the IRS computers. This, therefore, reduces manual labor of document scanning. This helps in getting a quicker tax refund. The IRS claimed that e-file is an efficient and fast mechanism and is much less prone to errors compared to traditional tax returns.Another factor that makes e-file a better option is its ability to save taxpayers money and cut on the bulk of paperwork. The IRS commissioner Doug Shulman talks favorably about e-file as he reports that millions of American dollars which are the taxpayers’ money is being saved by e-filing processes. How to pay taxes through e-files? If you choose to pay your taxes through e-file you cannot do it yourself, working in your own manner. There are proper channels that are to be kept in mind. Some has been discussed below:Appointing a registered and licensed tax return preparer.Using software programs like Turbotax or TaxAct. Using the IRS free filing portal. The important information that must be known to all is that while filing tax returns through a tax preparer and software program certain fee-charges are applicable. However, on the other hand, filing with the IRS facility is totally free of cost. Welcome to the CPA firm of Sanjiv Gupta: How we can help?Sanjiv Gupta is a professional financial advisor cum certified public accountant who runs his corporate business in the USA. He and his associates are experts in the field of personal and business tax payment assortments and offer valuable service to their clients through consultation and guidance. The facilities provided by Sanjiv Gupta’s firm are many. The services offered here are not too expensive and the firm’s prime concern is to provide accurate GAAP and tax reporting services. This results in a substantial saving of the client’s money. The company has its own website and every detail of the company have been given in it. Anyone who wants to get professional help regarding tax, business, and financial matters may contact Sanjiv Gupta at his firm address.

IRS Reminds About FBAR Requirement

Sanjiv Gupta CPA - 8 years ago
In a recent bulletin, the IRS reminded U.S. citizens and dual citizens of the United States and foreign countries who live abroad about U.S. filing requirements, including Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).Last year IRS and Tax professional promoted the importance of FBAR requirement.  Nonetheless, many dual-citizen taxpayers may still be unaware of this requirement. So, here is another quick overview of FBAR.Generally, FBAR must be filed by U.S. taxpayer having a financial interest in or signature authority or other authority over any financial account in a foreign country if the aggregate value of the accounts exceeds $10,000 at any time during the calendar year. The filing date for FBAR is June 30 and reported on TD F 90-22.1. The form is filed with the Treasury Department and is not filed as part of the tax return of a taxpayer.  Your tax professional can help you file FBAR or you can file yourself by filling out the form TDF 90-22.1.It is estimated by the Association of Americans Resident Overseas that some 6.32 million Americans live abroad.  However, according to the Treasury Inspector General for Tax Administration, only a little more than 534,000 FBARs were filed in 2009.  To close this gap IRS introduced an offshore voluntary disclosure initiative that allowed taxpayers to settle the FBAR requirement for all previous years.Do I have to pay tax if I file FBAR?No – FBAR discloses the foreign interest or account to the IRS and does not impose a tax. However, failure to file it can incur penalties and get you in trouble with the IRS. In fact, A willful failure to file can be subject to civil penalty (up to $100,000 or 50% of the balance of the foreign account, whichever is greater) and criminal penalties.  Non-willful failure to file may be penalized by up to $10,000 per violation unless the failure was due to reasonable cause.In the fact sheet issued by the IRS gave many examples of factors that could point to the reasonable cause of non-willful failure to file an FBAR.Reliance upon the advice of a professional tax adviser who was informed of the existence of a foreign financial account;A lack of any intentional effort to conceal income or assets related to an unreported foreign account that was established for a legitimate purpose; andA lack of any material tax deficiency related to an unreported foreign account.Factors identified as potentially weighing against a finding of reasonable cause, on the other hand, were:Failure by the taxpayer to disclose a foreign financial account to his or her tax return preparer;Background and education of the taxpayer indicating that he or she should have known of the FBAR reporting requirements; andA tax deficiency related to the unreported foreign account.Statue of limitation to file the delinquent FBARs is six-year.  So even if you were not aware of FBAR requirement, you must file the FBAR for the last six years and attach a statement explaining why they are late.

Freelance? Get Ready For IRS Audit

Sanjiv Gupta CPA - 8 years ago
Do you make money freelancing or doing consulting work?  You need to be extra careful with your tax returns as there is a good chance that your return may be audited. So, get ready in advance and avoid future trouble.“It is no secret that freelancers and self-employed people get audited more often than others,” said Sanjiv Gupta CPA.   He further explained that with a huge IRS budget there are more free agents than ever, the I.R.S. wants to take a closer look at self-employed and freelance professional’s growing numbers and make sure they’re doing their taxes correctly.In recent years the number of people doing consulting and freelancing has increased mainly due to layoffs and hiring freeze.   Consulting is a great option for expert professionals but one needs to be careful when it comes down to filing taxes.Similarly, Small business owners are at risk of being audited.  According to recent surveys,  if you’re a sole proprietor, you’re almost three times as likely to get audited as a corporate filer.  This may be a good reason to incorporate your business.   According to IRS, auditing small businesses is not because they don’t like small mom and pop shops but its because they are more likely to find errors and omission in small business owner tax returns.Small business owners should consult with their Certified Public Accountant to make sure taxes are filed properly.  This will significantly reduce their chances of being audited.  At the very least, you will have peace of mind that there are no errors in your tax return.

How Much Are You Paying For Your 401(k) Plan?

Sanjiv Gupta CPA - 8 years ago
How Much Are You Paying For Your 401(k) Plan?Have you ever wondered “How much are you paying for your 401(k)?”  There is a good chance that your HR has not discussed this particular figure with you but starting Aug. 30, that will change.An unprecedented policy change, the U.S. Department of Labor will require employers or administrators of 401(k) plans, to disclose how much they are charging to operate these retirement plans.   This new policy is being welcomed by many certified public accountants and financial advisors including my boss, Sanjiv Gupta CPA.“Some employers or administrators may be getting worried because they may not want to openly discuss this particular figure,” says Sanjiv Gupta, CPA.The cost of retirement plans can vary but you can expect anywhere between .3 to 2% if your account balance is less than $50,000.   Some of you may even choose to move your retirement plan once you know the exact cost of your plan.“You don’t have to wait till August to find this number. Simply ask your CPA or Financial Consultant.  In simple terms, this cost can add up to hundreds of thousand dollars over you the life of 401K account.” advises Mr. Gupta.You should also note that employees of small companies are probably paying more for their 401K account than the employees of a larger company.  Larger employers have more leverage and usually have better and cheaper retirement plans.New companies or companies will a lot of newly hired employees are also likely to have a higher cost and this higher cost ends up divided among participants.Before you go all nuts about the cost of your retirement plan, let me remind you that understanding the true costs of a 401(k) hasn’t been easy — even for employers but that is about to change. You should expect this in the mail or on your desk very soon.You will receive a 20-page document will a lot of information divided into 2 main sections. Along with your investment options, you will also get an explanation of administrative expenses and fees such as legal, record keeping and accounting. You will also get an explanation of what kind of fees and expenses can be deducted from your account.You will also get investment-related information: You will get some financial information about the historic performance.And benchmarking information comparing investment with the broad-based market indexYou will also get some other annual operating expense report but it’s not free.   The cost for providing this information is about $4 and your employer is allowed to subtract this from your 401(k) quarterly. What can you do with this kind of report? Start by asking some questions to yourself.What are the total all-in fees and expenses?What are we getting a return for the cost?How much it will cost me over the life of retirement account?This new will make employers look twice at the price they are paying for 401 (k) plans and motivate them to offer better options.  At the same time, employees should not focus solely on plan costs.  You may get some really good fund managers or some really good fund options.You should also note not to put too much in your company stock.  This can be seriously dangerous if your company's financial health gets in trouble.401(k) plans are important decisions and you should consult with your CPA or financial consultant on a quarterly basis to make sure you are getting the most for your money.

Legal Zoom Alternative In San Francisco Bay Area

Sanjiv Gupta CPA - 8 years ago
Sanjiv Gupta CPA firm is a great alternative to legal zoom business and corporation set up offerings.  We serve clients from Fremont, San Jose, Cupertino, Palo Alto, and the entire San Francisco Bay Area. Our firm set up Corporations, LLC, S-Corporation, Partnerships, and Sole-Proprietorships. If you are thinking about starting a new business than Sanjiv Gupta CPA firm can be a great choice over the Legal Zoom online website.Why Should You Do Business With Sanjiv Gupta Instead of Legal Zoom?Starting a new business requires proper planning both from a tax perspective and long term survival of the company.   What kind of corporate structure you set up should depend upon how your business will operate and how you plan to exit your business.  This kind of advice is hard to get from Legal Zoom or other online corporation set up practices.  When you sit down with Sanjiv, you will understand why you should choose one kind of business structure over the other.  You will learn how one structure can save you thousands of dollars in taxes.  You will learn how you can exit out of the business when you are ready to sell or retire.Online practices like legal zoom do not focus on customized and individual service but firms like Sanjiv Gupta can deliver exceptional value to new business owners in this arena.   In addition to setting up your company, you can also learn about tax saving strategies and how you should handle payroll and other taxes.Is Legal Zoom Cheep?Legal Zoom is only doing paper processing.  You decide how much paper processing should be worth.  You should still consider consulting with your CPA or attorney even if you started your business using Legal Zoom.Can you do this yourself?Of course, you can do the paperwork yourself.   But the key is to identify what makes a long term success.  Saving money on important tasks as setting your company may not be a wise move. You may end up paying extra taxes just because you picked a wrong structure or timing of setting up your company was wrong.Is it as easy to set up a company with Sanjiv Gupta CPA firm as with Legal Zoom?This one is a tricky question.  Sanjiv Gupta CPA firm specializes in a customized solution that can be a good fit for the long term.  Therefore, you must set up an appointment with Sanjiv Gupta before we can set up your corporation or LLC.  You may consider it an extra step but this can very useful and save thousands of dollars in taxes.Ready to set up your business. Give us a call at 510-825-7563 or visit us online at sanjivcpa.com

Tax Strategy For Facebook Stock Holders / Employees

Sanjiv Gupta CPA - 8 years ago
Are you one of the lucky Facebook employees who received millions in Facebook stocks?  Are you giving away half of your stocks just to pay for taxes? Are you looking for a strategy that can save thousands of dollars in taxes?  Then you need to make an appointment with your CPA as soon as possible.   Time can play a big factor in how much tax you will end up paying.You may also be aware of Facebook selling some of your shares to cover the tax withholdings.   How much tax should be withheld?  Each situation is unique and Facebook may not be aware of each individual tax status and therefore can not accurately determine how much tax to withhold.  However, this won’t stop them from selling your stocks.Are you thinking about renouncing your citizenship like  Severin to avoid paying millions in taxes or do you have any other tax strategy in place? Well, if you don’t then you should think about it.   Your CPA should be able to help you come up with one.   In most cases, it is very late to renounce your citizenship but you may have some other options to avoid paying huge taxes.  Moreover,  “There is a  law known as the Reed Amendment which explains that if the Attorney General determines that a U.S. citizen renounced citizenship for the purpose of avoiding tax, the former citizen may be barred from returning to the U.S.” explains Sanjiv Gupta CPA.   You can look at your capital losses to help offset the gains from Facebook stocks., he added.“I am not going to sell any of my stocks than why do I owe taxes ?,” ask Facebook employee aka 21st-century millionaire.As a Facebook employee, you received restricted stock units, or RSUs, that don’t turn into actual stock until there is what is defined as a liquidity event.  Liquidity event is a taxable event and  Facebook IPO is one such event.  In other words, you now owe taxes.  Sanjiv Gupta explains that the IRS considers income from stocks as regular compensations and should be taxed as any other regular income you may earn.In other words -Income from RSU turned stocks is not taxed as long-term capital gain tax. Instead, they will be taxed as your regular income based upon your tax bracket.   You will be taxed both California Tax and Federal tax.Just in California State Tax, you will pay about 9.3% plus a 1% surcharge if your net taxable income is over 1 million dollars.  Now add your federal income tax bracket on top of this and you may be close to 50% in taxes alone.That is lots of taxes.   Grab your phone and set up an appointment with your CPA to discuss your situation.  You can also consult with Sanjiv Gupta by calling 510-825-7563.

How To Start A Start Up ?

Sanjiv Gupta CPA - 8 years ago
We are almost at the end of May and weather is starting to get hotter by the day. This weekend, in particular, felt hotter than previous weekends.   Temperature is almost the same as last weekend but I am feeling it a bit hotter.   Maybe  its because of Facebook.   The company has created hundreds of millionaires in the bay area and things are really starting to get hot around here.When we hear stories like Facebook, an entrepreneurial sitting in us may ask “how to start a start-up like Facebook ?”A startup like Facebook means a very successful start-up.  How do you do it?Ingredients for a good start-up and well known.  You need good people with great skill sets, make something that customers actually want and do it with the least amount of money possible.   You don’t need to invent something new or come up with a super cool idea.  You just need something that is much better than what’s currently available.If the formula is well known than how come we do see IPO’s like Facebook every day?I recently met with the CEO of one of the leading franchises in the United States who invited me to consult on their marketing strategies.  After carefully listening to my ideas he commented that ‘I also have lots of ideas but we often fail to implement those.”  This reminded me of a phone call a couple days with the CEO of a leading restaurant owner in Fremont.   He made a similar comment.   I meet with many business owners and CEOs of small and medium-sized companies and all of them have great ideas but they either fail to implement their ideas or invest in wrong ideas.The truth is the failure is usually due to a lack of implementation.  Some fail to put the right people in right place, some spend time, money and energy on the wrong product and some spend so much money doing it that they go brook long before they can become profitable.Recently example of such failure in  Silicon Valley was Solyndra.  They picked the wrong product and spent millions of dollars in taxpayer money only to lose it all within months of initial government back funding.How do you get the right people in the right place?This one is probably the most tricky part.    People involved within your company can be your relatives, friends and they may or may not be the right fit for the job.   Do you keep running the show with them or do you find the right person for the job?A common solution is to keep a friend or relative until the company becomes profitable.   This strategy may work if you only have a couple people in the wrong place and they are not providing a substantial amount of support.   However, most companies will fail if they continue on this path.You need to find the right place for the right people.Building something people will like?This is what we call market research.  Find the answer before you spend thousands of dollars.   We are living in a computer age and you can research almost anything.   You can hire professionals like Fixtro to do market research for you.Gather all the information you need before you start.  Some people even call this a feasibility study.Doing it for as little as possible?Should you open office in Stockton CA or San Jose CA? Should you travel or do video conferencing? Should you hire employees or consultants?  There are probably hundreds of decisions you need to take to cut the cost on a daily basis.   Good CPA or in house financial consultant can help you cut costs.Some new business owners cut corners instead of cutting costs.  Having a good CPA can help you avoid such mistakes.   Good CPA can also help you keep most of your earnings in your pocket instead of paying it in taxes.Ready to start a startup?You can contact the office of Sanjiv Gupta CPA for tax and company advice and you can talk me to for business research and marketing.

IRS and YouTube Partnership To Educate You

Sanjiv Gupta CPA - 2 years ago
Internal Revenue Service has partnered up with an online video site, YouTube, to deliver its message to the general public.  You can find hundreds of useful tax-related videos on YouTube.   You can estimate the popularity of this combination by looking at the viewership of the IRS channel.  Over 1.7 million views make the IRS YouTube Channel the fifth most viewed online channel out of more than one hundred and twenty-five YouTube Channels.IRS conducts online webcasts on various topics and posts those webcasts as the video’s on YouTube.  You can participate in an online webcast to ask your questions live to an IRS agent or simply view the video’s to enhance your knowledge.  During tax time you find videos about last-minute tax tips or how to arrange a payment schedule with the IRS.   However, you will also find a wealth of knowledge even after tax time.Just last month, IRS conducted a webinar called “Small Business Advantage: Put our knowledge to work for you.”  The webinar was over one hour long and included multiple resources to help small businesses thrive.You can easily find the IRS YouTube channel by simply typing IRS in the search box on YouTube.Sanjiv Gupta CPA advises all his clients to learn from online videos but don’t depend upon that advice entirely.  Often time interpretation of online video can cause quite a bit of confusion and usually end up costing penalties and late payment charges to taxpayers.  ‘You should watch the video to understand the basic concept but always consult with tax professional to understand how you can apply the concept in your business” explains bay area’s popular certified public accountant Sanjiv Gupta.

Debt Financing Advising

Sanjiv Gupta CPA - 6 years ago
Sanjiv Gupta CPA specializes in structuring and raising capital for middle-market companies. We are fully dedicated to meeting the debt financing needs of publicly traded, privately-owned and sponsor-backed growth companies. Our focus is on companies looking to raise money through creative financing solutions.We structure and place various structured, senior and subordinated debt and equity products for borrowers with varying credit quality and sizes. Sanjiv Gupta CPA works to assist both the financial sponsors and borrows to address the financing needs in a cost-effective and timely manner.What Is Debt Financing?Debt financing is when companies raise money for capital expenditures or working capital by selling notes, bonds or bills to institutional or individual investors. Individual lenders can include officers, shareholders, directors, friends or family. In return for lending money, the institutions or individuals become creditors. They receive a promise that the funds will be repaid plus an agreed-upon level of interest. Although the term ‘debt financing’ has an undesirable connotation, many new start-up companies turn to debt financing to finance their operations. Even the healthiest balance sheets include some debt.Debt Financing AdvantagesMaintain Your Ownership: One of the major advantages of debt financing is that you will maintain ownership of your company. When you borrow money from a lender, you have an obligation to make all of the payments on time. However, that is where your obligation ends. You will then be able to run your business operations however you would like. Unlike equity financing, you will not have any outside inferencesTax Deductions: In addition to maintaining your ownership, you will also qualify for tax deductions on the debt. In most cases, both the interest and principal payments on business loans are classified as business expenses. Therefore, they can be deducted from your company’s income taxes.Reduced Interest Rate: When you are considering debt financing, you should analyze your federal tax deductions on the debt’s interest rate.Speak with a Sanjiv Gupta CPA debt finance advisor to find out all of the benefits of debt financing.Debt ArrangementsMost debt arrangements will involve a promissory note, loan agreement, and guarantee. Contrary to popular belief, there is no such thing as a standardized loan agreement. Virtually all terms can be negotiated for any debt you take out behalf of your company. Sanjiv Gupta CPA will help you negotiate the best deal for your debt financing. We will help you work through various issues including:Parties (including guarantors and co-signors)Interest rateFees (including attorneys’ fees)Terms of payment (including the grace period, prepayment and late fees)Use of loan proceedsCollateralAffirmative covenantsNegative covenantsRepresentations and warrantiesConditions to closingEvents of defaultSanjiv Gupta CPA debt financing advisors are here to help you determine the best way to raise capital for your business. Over the years, our trusted advisors have helped our clients find creative solutions including structured equity, convertible debt, second lien term loans, senior debt, mezzanine financing and “one stops”. We have extensive experience finding the best solutions for our clients.

Benefits of Sanjiv CPA’s Payroll Services

Sanjiv Gupta CPA - 6 years ago
When you use Sanjiv Gupta CPA Payroll Services, you can avoid the complexity of calculating your payroll and tax withholdings. This will let you spend time focusing on your business’ success.If you are like most businesses, you are constantly struggling to keep up with complex employee-related issues and ever-changing tax legislation. It is time to consider outsourcing your payroll to Sanjiv Gupta. This will help you mitigate your risk and remain focused on your business.You can rely on Sanjiv Gupta CPA Payroll Service’s tax expertise and comprehensive payroll services to manage your business’s payroll. At Sanjiv CPA, you can choose a standalone payroll tax solution or you can bundle the payroll tax services with a complete payroll solution.Benefits Of Sanjiv CPA’s Payroll ServicesConvenience: Submit payroll easily by phone, fax or online.Eliminate Time Consuming Manual Processes: Our payroll service provides automated tax services with payroll integration.Reduce Potential IRS Penalties: Approximately 40% of small businesses get hit with IRS penalties on their payroll tax filings because they filed inaccurate or late returns or they were found in non-compliance. When you outsource your payroll to Sanjiv CPA, you can eliminate the risk of IRS penalties.Peace of Mind: Outsourcing your payroll to Sanjiv CPA provides peace of mind. Your payroll taxes will be filled accurately and on-time by certified public accountants you can trust.Customize Your Business’ Tax Strategy: Sanjiv Certified Public Accountants can help you customize your business’ tax strategy with a wide variety of related tax services and add-ons.Personal Service: Sanjiv Gupta CPA Payroll Services are always only a phone call away. If you have any questions about your payroll account, you can talk to a live payroll advisor and receive immediate attention.Health Care Reform Compliance: We will ensure that you are in compliance with the Health Care Reform so you can prevent issues and penalties.Expertise: When you outsource your payroll to Sanjiv Gupta CPA, you can rest assured that you are putting one of the most important accounting processes in the hands of experts. We have expertise in payroll tax filing, employment-related tax, and all other business-related tax issues.Reduced Payroll Administration Costs: When we handle your payroll tax filings and payroll services, you will find a huge reduction in administration costs. Your staff can spend their time and efforts on business functions that will increase your overall revenue.Sanjiv Gupta CPA provides innovative payroll features and reliable expertise that you can trust. Your staff will be able to stay focused on your core business. We will handle your payroll, tax filings, 1099s, workers comp, and withholdings.We guarantee our cost-effective and timely payroll tax filing services. You can rest easy because you will no longer be stressed over filing deadlines and tax calculations. You will not have any more IRS penalties or interest charges because you accidentally filed late. Sanjiv Gupta CPA Payroll Service advisors are experts in government regulations. We can help you reduce hidden payroll costs, reduce potential risk and start focusing on your bottom line.
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