Let us create a 3D eBook for you!
Let us create a 3d Digital eBook for you! DigyCat.com

Small Businesses Filing Amended Federal Tax Returns to Recover Money


Small Businesses Filing Amended Federal Tax Returns to Recover Money

By Darren Oliver

April 15th may be gone but, but certainly not forgotten - especially if you, like millions of small businesses, unknowingly overpaid your federal taxes and can recover money by filing an amended return.

According to the IRS tax code, you have three years from the filing date for the tax year in question to file an amended return. For example, if returns for the 2003 tax year were filed on March 1, 2004, the taxpayer has until March 1, 2007 to file an amended return. This same rule also applies if the taxpayer feels they have made errors resulting in a balance.

Most business owners either prepare their business taxes themselves or have a tax preparer or accountant do them. With either method, the tax liability can be calculated as higher than it actually is because of missed deductions, unrecognized changes in tax laws or just plain being given bad advice.

There are a number of applicable deductions which many tax preparers often miss from home office deductions to self-employed health insurance to personal assets converted to business use. Although some deductions may seem minor, over an entire year, they can add up to thousands of dollars.

Another area, which causes many businesses to overpay, is being given incorrect advice by their tax preparer or even the IRS directly. In a poll performed by Money Magazine, the average tax preparer produces an average of 480 returns between February 1 and April 15, making it difficult for each return to get the time and attention it deserves. This same poll also found there was an average discrepancy of 300% between what the tax preparers said was due and what was actually due.

Furthermore, in the IRS's 2001 assessment of their own call centers, they found that 50% of the time, their representatives gave incorrect or insufficient advice. Whether a business owner does their taxes themselves and had to call the IRS for clarification on an issue or a CPA did, odds are the answer was not correct.

The United States tax law is one of the most complex in the world. Not to mention, tax laws change every year and have changed tremendously in the last couple of years. Even the best tax preparer, CPA or even IRS representative can, like all humans do, easily make a mistake.

In 2002 alone, 3.3 million taxpayers filed an amended return. Samuel Rowley, owner of Muffler Masters in Colorado, was able to recover $14,500 through the filing of an amended return when it was found that he overpaid FICA and payroll taxes. Another small business owner, Karen McClafflin, owner of home-based Secret Canyon Realty, was able to recover $11,000 when her tax preparer failed to include home office and automobile deductions in her past returns.

Why is it that when faced with a life-threatening surgery a second opinion is immediately sought after but, when trusting thousands or millions of dollars to an individual or entity, it's done without question? Businesses must get a second opinion, whether it is done before or after the return is filed, to ensure they are not overpaying or simply to ensure their returns are accurate in all aspects. If not, they could be leaving thousands of dollars on the table.

Darren Oliver is the Chairman and COO of TRS. Through their network of sales partners and franchisees, TRS is dedicated to recovering overpaid taxes for small businesses. This commitment has resulted in an average $8,000 recovery for qualified reviews. For more information, visit www.trs-esp.com or call (800) 714-3504.


MORE RESOURCES:

Taxes - Google News

This RSS feed URL is deprecated

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

10 Ways to Legally Reduce Your 2018 Taxes - Motley Fool


10 Ways to Legally Reduce Your 2018 Taxes
Motley Fool
Homeowners are privy to a number of tax benefits, the most lucrative of which is typically the mortgage interest deduction. Now you could just make your standard 12 monthly mortgage payments in 2018 and call it a day, but if you want to eke out some ...

and more »

Indian government likely to reject Apple's request to delay new import taxes - 9to5Mac


9to5Mac

Indian government likely to reject Apple's request to delay new import taxes
9to5Mac
Wistron assembles iPhone SE models in India for Apple, but the components are all imported. Under a current agreement, most of these components can be brought into the country tax-free, but the government wants to impose import tariffs on more of them ...
Apple, India wrangle over import tax on mobile parts: sources Reuters

all 8 news articles »

Small Investors Face Steeper Tax Bill Under Senate Proposal - Wall Street Journal


Wall Street Journal

Small Investors Face Steeper Tax Bill Under Senate Proposal
Wall Street Journal
A little-discussed provision in the Senate tax bill could lead to a higher tax bill for millions of small investors and cause many to unload stocks before year-end to avoid those costs. Under the Senate's $1.4 trillion tax overhaul, investors would ...

and more »

Most Americans Expect a Tax Refund in 2018 - And That's Not a Good Thing - Yahoo Finance


Yahoo Finance

Most Americans Expect a Tax Refund in 2018 - And That's Not a Good Thing
Yahoo Finance
If there's one thing pretty much all Americans can agree on, it's that taxes are a major burden. Not only does losing a portion of our income constitute a harsh blow, but the process of filing taxes can be downright stressful. But filing hassles aside ...

In Trump's America, Even White People Can Face Poll Taxes, if They Lean Liberal - Daily Beast


Daily Beast

In Trump's America, Even White People Can Face Poll Taxes, if They Lean Liberal
Daily Beast
The Granite State's Republican-controlled state legislature has responded to narrow defeats — we're talking less than a percentage point — to Democrats in the 2016 election by proposing a poll tax that targets college students: a vital Democrat ...

and more »

Precision sacrificed for speed as GOP rushes ahead on taxes - Chicago Tribune


Chicago Tribune

Precision sacrificed for speed as GOP rushes ahead on taxes
Chicago Tribune
The specific legislation that probably will become law, sold as a middle-class tax cut but featuring a massive corporate rate reduction at its center, is moving from release toward passage without any hearings, unusual for a bill of such magnitude. And ...
Susan Collins Says She's Not a Definitive 'Yes' on Taxes New York Magazine
Today in Taxes: Busy Behind the Scenes Wall Street Journal
Republican tax bill would tie the hands of blue-state governments Washington Examiner
Bloomberg  - New York Times  - AZCentral.com
all 257 news articles »

8.8 million Americans face big tax hike if Republicans scrap the medical deduction - Minneapolis Star Tribune


Minneapolis Star Tribune

8.8 million Americans face big tax hike if Republicans scrap the medical deduction
Minneapolis Star Tribune
Anne Hammer is one of millions of elderly Americans who could face a substantial tax hike in 2018 depending on the final negotiations over the Republican tax bill. In her retirement community in Chestertown, Md., it's the big topic of conversation ...
As California burns, Congress plans to slash tax write-offs for fires and other disasters Los Angeles Times

all 29 news articles »

Scoop: Trump's closing argument on taxes - Axios


Axios

Scoop: Trump's closing argument on taxes
Axios
Scoop: Trump's closing argument on taxes. Photo: Alex Brandon / AP. On Wednesday, President Trump will deliver his closing argument on tax reform to an audience made up largely of young people and middle-class families whose personal stories will be ...

and more »

Taxes and the Safety Net - New York Times


New York Times

Taxes and the Safety Net
New York Times
Make no mistake: The tax cuts for corporations and wealthy people that Congress is determined to pass will lead to major cuts to health and economic security for the rest of us. The Congressional Budget Office anticipates that Medicare alone will be ...

and more »

LargeFriends.com - the best dating site for plus-sized singles!
SuccessfulMatchCentral.com - the best dating site for plus-sized singles!

PreLaunchX

PrimeNews Domain Is For Sale - $5,000 For Enquiries eMail Us

© www.PrimeNews.biz - 2012

home | site map | links