Latest News on Denver Accounting & Taxes

What is Consumer Use Tax? Overview from Your Denver Tax Specialist


June 21, 2017

Today, over 70 percent of Americans shop online. Often, purchases being made are outside of a person’s state. If you are included in the 70 percent, then you may be subject to consumer use tax. This is a type of tax different than sales taxes that a consumer is responsible for. It is also different than retail use tax. Learn more about use taxes, top differences from sales tax, and more about paying use taxes and using a go-to accountant that provides quality services to help you navigate through the process.

Use Tax

In some circumstances in a sale of goods or services, the person selling those goods or services does not charge sales tax. In these instances, this is where the consumer purchasing the goods or services is responsible for paying the taxes, also known as “use tax.” This commonly happens when transactions are made outside of the state, which is why it is common for online purchases. When a purchase is made and a buyer was not charged sales tax for the purchase, the buyer must report their purchase and fill out proper paperwork. Use tax, explained by Investopedia, notes that buyers who do not pay their use tax on purchases might be subject to paying interest or penalties.

Differences from Sales Tax

Sales tax is when tax is paid upon making a transaction. Many states across the country charge sales tax on the products and services they sell. For some states, it is a statewide tax but is not always the case. With sales tax, a seller of goods and services is responsible for handling all paperwork to make sure sales tax is paid for goods and services.

Paying Use Taxes and Using an Accountant

So, to recap paying use tax, if purchase a product and you are not charged the sales tax, you will owe the state you purchased it from sales tax. Use tax can get complicated and confusing. That is why it is best to work with a local accountant. They will work with you to help you file the proper tax return to the state you owe the use taxes in. For Colorado, the use tax is the same as the state’s sale tax rate. For consumers, the use tax is due annually when you file your tax return. It is helpful for you to save all records of items you had not paid taxes on throughout the year to work with your accountant on. From there, they can help you with the right forms you will need to include in your returns.
 
For help paying your use tax in Denver, the premier office of Bloch, Rothman and Associates has you covered. They will help you understand what you owe and will also assist you with filing taxes in Denver with multiple documents. In addition, we help with personal tax preparation, IRS audits, IRS collections and so much more. Let us help! Contact Bloch, Rothman and Associates today to set up your free initial consultation to review your tax situation.
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IRS Collections Explained by Your Denver Accountant


June 14, 2017

Each year, millions of Americans owe taxes to the Internal Revenue Service (IRS). This can occur for a variety of reasons. For many, the amount is more than they can pay by the tax deadline. When failing to pay the IRS, the money you owe will be turned over to collections. When this happens, for some, it can be overwhelming. Even when you owe money to the IRS, help is available. Learn more about the reasons why you owe on your taxes, tips for working with the IRS and options to pay back taxes from your Denver accountant.

Reasons You Owe on Your Taxes

During tax season, you may have owed money on your taxes and were not able to pay the amount by the tax deadline. This could have occurred for a variety of reasons. For started, working as a freelance or self-contractor, you are responsible for taking out your own taxes as the employer will not. For others, when they sell a home at a higher price than it was purchased for, there is a chance you will need to pay more in taxes on that sale. Certain individuals also receive a large lump sum of money, whether it be through a gift, gambling winnings or inheritance, you will owe taxes on those dollars.

Tips for Working with the IRS

If taxes owed to the government are not paid on the annual deadline, those who have not paid will receive a bill from the IRS. In addition, you will also receive the taxpayer bill of rights. Know what your rights are by reading the IRS’ Taxpayer Bill of Rights. During this process, you can work with a local accountant to help you learn your rights and create a plan to pay back the funds. It is important to know the IRS’ word is the be-all, end-all. There are times where mistakes are made or you can work with them to pay back a lower amount. To help you pay, they can do things such as liquidating assets.

Options to Pay Back Debts

There are options to help you pay back your taxes to the IRS. First, you could use their time extension. This gives you an additional 120 days. You can also take advantage of an installment agreement to help you pay in smaller chunks in return of the funds being pulled straight from your bank account. There are options to make exchanges too, which is something you can discuss with your accountant. When paying back the IRS, you can pay through a credit card, bank transfer or check. This can be done in-person, online or over the phone.
 
Are you wondering what to do for your situation involving IRS collection information? Bloch, Rothman and Associates can help. We know all of the ins and outs to paying back taxes. By working with us, you will know and understand your rights, too. To get started, Contact Bloch, Rothman and Associates today to get started on your case and help you easily manage working with the IRS.
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Starting a new business? Tips for Denver Business Tax Preparation


June 7, 2017

Starting your own business is an exciting feat! While challenging, you can be proud to know you are making a difference in your local community. There are several important tasks to do along the way, and putting a plan in place will be key to reaching your goals. From business and marketing plans to financial tips and Denver business tax preparation, learn the ins and outs on top things you should know.

Business and Marketing Plans

When creating goals to start your own business, you will need to have two plans in place: a business plan and a marketing plan. A business plan covers important details about how your business will run, all while laying out your master set of goals. This will show you the key details on how you will make money and is often required to supply to key people when choosing to get a loan for your business. Business plans look out into the future of your business and within it as you build the steps to your success. To learn more about business plans, visit Entrepreneur’s An Introduction to Business Plans. Next, a marketing plan helps you achieve the goals stated within your business plan. Through a marketing plan you will take a deeper dive into your target audience base and come up with key ways to market to that audience. Marketing is key to building audience engagement, sales leads and finally customers, and is extremely important to the success of your business.

Financial Tips

When it comes to managing the finances for your small business, it is best to always stay on top of your bookkeeping. Hiring experienced employees to help with this task will provide the best outcome. It is also beneficial to get as many deals as you can on the services you utilize. This will help to free up expenses in other areas. One way to save on funds is to run a paperless operation. While you may have to print some items, sticking to a goal to print less or not much at all will save on costs and will help your business be eco-friendly. It is also important to have a go-to plan in case of emergency. You need to have financial savings and plans in the event sales drop and how you will handle certain circumstances.

Tax Preparation

When starting your small business, you will want to keep records of everything in an organized fashion. This will help you immensely during tax season. To make things easier, an online archive of all items will help you find things more quickly. Another way to help you with finances and tax preparation is to work to automate various tasks. As you work to keep items organized, speak with an experienced accountant on what kind of tax breaks you are eligible for. They will work with you to let you know what documentation you will need.
 
As you work to build your small business, be sure to read Denver Business Tax Preparation: Ways Your Small Business Can Prepare for Next Year’s Tax Season. To get started, let Bloch, Rothman and Associates help. You will love the quality and attention you will receive from our team. Contact Bloch, Rothman and Associates today.
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How Healthcare Plays a Role in Your Denver Taxes


May 24, 2017

Based on the Affordable Care Act (ACA), all Americans are required to have health insurance. If there is a period of time where an individual does not have health insurance, they will have to pay a penalty. All of this will occur during tax season. While things may change in the future under a different presidential administration, but unless something changes, you must abide by the laws under the ACA. Learn more about top basic ACA health insurance guidelines, a go-to look at paying a penalty and exemptions.

Basic ACA Health Insurance Guidelines

According to federal law, all Americans are required to have health insurance. By abiding by this law, you as a citizen can take advantage of free preventative care, insurance companies not denying you for pre-existing conditions and more. Insurance can be through your employer or separately, such as the Health Insurance Marketplace. If you have insurance, you will receive one of three forms: 1095-A, 1095-B or 1095C. The 1095-A will come from the Healthcare Insurance Marketplace, 1095-B is sent from those who have insurance not under their employer and the 1095-C is for those with insurance through their employer.

Premium Tax Credit

For some Americans, there is the Premium Tax Credit available to assist with paying premiums. In order to qualify, in the IRS’ The Premium Tax Credit, it says income must fall between 100 and 400 percent of the federal poverty line based on the size of your family. Next, unless there are certain extenuating circumstances, you cannot receive the credit if you file “Married Filing Separately.” They add that dependents cannot receive the tax credit, you must be covered through the Health Insurance Marketplace, are not eligible for other government programs and pay your premiums.

Paying a Penalty

Those who do not have health insurance have to pay a fine. You will be charged for the months that you and/or members of your family were not insured. You will have to pay your fine when you file your tax returns. According to HealthCare.gov’s The Fee for Not Having Health Insurance, you will pay the higher of the following two: 2.5 percent of household income (with a maximum  of total yearly premium for Bronze plan from the Marketplace) or $695 per adult and $347.50 for children under 18 (up to $2,085).

Exemptions

There are exemptions to paying the mandatory fine for not having health insurance. They include having insurance offered through an employer that is higher than you can afford, you are not a legal citizen or are in prison, or if you are in a healthcare sharing ministry. In addition, those who are impacted by a natural disaster, are homeless or other reasons are also exempt. You can speak with your local premier tax specialist to see if you are exempt from paying the fine.

Understanding healthcare and tax laws can be difficult—but Bloch, Rothman and Associates can help. Our quality one-on-one service will help you prepare for your next return and answer all questions you have about health insurance mandates and more. Learn about our personal tax preparation to see how we can best help you!
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Taxpayer Bill of Rights Explained by your Denver Tax Specialist


May 17, 2017

As an American citizen, you are aware of the Bill of Rights. But did you know there is also a Taxpayer Bill of Rights? These cover the go-to reasons citizens and the Internal Revenue Service (IRS), would be in contact with one another. Learn what the Taxpayer Bill of Rights are, a quick overview of them and top tips to help you when dealing with the IRS.

What Are the Taxpayer Bill of Rights?

When interacting with the IRS, American citizens have a set of 10 rights. These consist of a variety of rights taxpayers have when working with the IRS like, the right to be informed, the right to finality and the right to privacy. It is also important for you as a citizen to receive all correspondence on an issue. It is best for you to know the Taxpayer Bill of Rights so you know if the IRS are taking incorrect measures or making mistakes when it comes to your taxes, so it is crucial for you to know your rights in the event you need to challenge the agency.

Quick Overview

The IRS dives into each “Bill of Right” in their article Taxpayer Bill of Rights. For a quick overview, you have the right to:
  1. Be Informed (explanations of everything relating to your situation)
  2. Quality Service
  3. Pay No More than the Correct Amount of Tax
  4. Challenge the IRS’s Position and Be Heard
  5. Appeal an IRS Decision Using an Independent Firm
  6. Finality
  7. Privacy
  8. Confidentiality
  9. Representation
  10. A Fair and Just Tax System
In the event you are dealing with issues when corresponding and working with the IRS, in the Taxpayer Bill of Rights they explain that you can get help from the Taxpayer Advocate Service. This measure can be taken if you are having problems or the IRS. Given that there are so many ins and outs to tax law and the Taxpayer Bill of Rights, it can be helpful and beneficial to utilize the help of a representative that knows the details of your rights.

Help Speaking to the IRS

If you must work with the IRS for a tax audit post submitting your return, there are many things important to know. This is why it is important to work with a local tax specialist on your issue. After all, you may know what the Bill of Rights are, but may not know the details within each. Many citizens do not realize the IRS is handling matters incorrectly at all. Therefore, it is crucial for you to work with a quality specialist.

Are you currently dealing with the IRS? Bloch, Rothman and Associates can help. As a premier tax specialist, you can count on us to handle corresponding with the IRS for you, stop enforced collections, release bank and wage levels, settle back taxes and unfiled returns, negotiations, getting you back into tax filing compliance and much more. To learn more, be sure to read about our tax resolution services in Denver. Be sure to contact Bloch, Rothman and Associates today to get started.
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