Latest News on Denver Accounting & Taxes

Taxes consist of more than end of year forms provided from your employer to show how much an individual earned during the course of a year. There are numerous layers to any tax return and almost everyone’s is going to differ but a few key considerations can assist you in lowering your taxable income. Deductions provide the method and often occur throughout the year as opposed to happening during one designated time period.

For this reason it is important to keep a list of all potential deductions associated to your tax return during the course of the year. By maintaining a record of different payments and contributions, in addition to the required documentation, both filing out your return and the potential for decreasing your taxable income increase in ease and efficiency.

It also helps to remind tax payers about what took place during the past year which may not have been remembered otherwise. While the potential to make an amendment exists, it is better to ensure your taxes are prepared correctly and with all of the necessary documentation prior to filing the first time.

Following is a list and brief explanation of a few potential deductions which should be tracked.

Charitable Contributions

Donations, both monetary and otherwise, need to be recorded and depending on the amount or value - proper documentation will also be required. For any such giving involving amounts higher that $250, either a receipt or specific details of the donation must be included as evidence of the gift.

Many places which receive charitable donations are familiar with the tax implications and can provide you with necessary documentation for warranting a gift. The important thing is to remember both the amount or value and keep track of it as the year transpires. Multiple gifts to the same agency which total over the $250 amount can be difficult to track without the necessary paperwork.

Non-Reimbursed Expenses

There are a number of deductible medical and work-related expenses which can be taken if not reimbursed by an individual’s insurance, employer, or another method. These out-of-pocket payments can assist in reducing the taxable income.

Paid Taxes

Both real estate and owner tax on vehicle registration, in addition to your prior year’s preparation fees have the potential to be deductions. These payments are made directly associated with tax implications and can be especially beneficial to small business owners - especially the tax preparation fee deduction.

Come see the experts at Bloch, Rothman, and Associates who will provide you with a complete list of potential deductions, review your specific tax blueprint, and answer any questions regarding individual or business income taxes. Are associates also can assist with a variety of potentially different bookkeeping options. A full detailed review of your tax situation can be completed in addition to resolution issues and estate compilations. All services, including free of charge E-filing options will be completed in a timely manner, depending on your restrictions and possible tax deadlines. Whether you need a simple explanation on a random tax form or are in need of a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for a free, no obligation consultation.

 

Keeping up with invoices, bills, payments, checks, accounts, and payroll can be an overwhelming task for any business owner, especially first-time entrepreneurs. Organizing the paperwork for implementing this process and administering all of the necessary applications for sufficient and accurate execution are vital to the bookkeeping process and a necessary building block for a business to be successful.

Electing to provide the individual responsible for this measure a program for assistance can help to alleviate any issues which may arise in the future. This service may also be distributed to a third-party for completion or executed by the hired individual and then correlated by the professional service before completion of the tax return.

Each of the following programs offer differing pros and cons for bookkeeping purposes and can be used to help simplify the overall process. 

Quickbooks

There are multiple benefits of having Quickbooks, including ease of use and a wide array of different applications. Probably the most widely accepted and used program, Quickbooks has a storied history of satisfied customers and clients. 

Freshbooks

Freshbooks is similar to Quickbooks, offering the same type of options for business owners. Known for their ease of invoicing and tracking payments from multiple clients, recurring and one-time, the Freshbooks program holds an advantage for small business owners who have multiple invoices to keep up.

Xero

Another bookkeeping program offering assistance to individuals, Xero is better designed for Mac users. This program operates using the cloud, storing information and allowing individuals to access their information remotely from any location with wifi access.

Zoho Books

One of the best accounting software programs for micro businesses, Zoho Books has a competitive price point while offering similar services as their counterparts. The low price with a useful but stripped down version of bookkeeping makes this program a solid choice for many business owners.

Wave Accounting

A free option which may be suitable for your business depending on the type and use, Wave Accounting is an online program with payment options. Many of the useful tools are offered free of charge with fees applied depending on the extent to which the application is used.

The accounting and tax experts at Bloch, Rothman, and Associates are ready to assist you with determining which program would be best suited for your business or to take over your bookkeeping needs completely. Our highly trained associates can help ensure that you not only receive the best service possible but also end up with a tool that is going to be useful both at the point of necessity and when comparing entries and pulling data for tax purposes. Known for providing expert advice and financial assistance, the professional staff at Bloch, Rothman, and Associates can also help with a variety of other accounting, tax, and payroll options on an individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in any other tax area our staff is ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.

The deadline for filing a tax return for which you have asked for an extension is approaching on October 15, 2018. Individuals often file an extension if they have a complicated return involving multiple income sources, stocks, bonds, or are shareholders for a certain organization. While anyone is eligible to submit an extension application, few realize the added time is for filing only and not an extension of time to pay. 

If you believe or are aware taxes will be owed to the Internal Revenue Service (IRS) for the previous year then this amount must accompany your request for an extension. If not, it is likely the penalties and interest accrued between the filing time and once the actual payment is applied will begin and be added onto the initial amount. If you find yourself in this situation or simply cannot owe the due amount at any point - when first filed or prior to the extension deadline, then one of these different options for a deferred payment may be appropriate.

Short-term Extension to Pay

One extension and payment option involves receiving an additional 120-days in order to pay due taxes. This request can now be made online by filling out a Payment Agreement Application to see if you qualify for a delayed payment.

Using this method, individuals will often continue to accrue any appropriate penalties and interest associated with the delay but it puts everyone on the same page in understanding the situation is not being ignored and will be properly addressed.

In some cases, the IRS will waive penalties for certain individuals who have suffered an unforeseen hardship or other qualifying reason causing the delayed payment. This requires a separate form to be submitted.

Installment Plan

The IRS will accept payments submitted on a regular schedule for amounts owed less than $50,000. While there is a one-time fee ($105) to have an installment plan created, it provides a repayment schedule and allows individuals an opportunity to track their tax payment as it is applied.

One big advantage of theIRS installment agreement is that a person can extend the payment of their amount due over the course of 72-months instead of immediately or with just the 120 day extension.

Offer in Compromise

A last resort for people in serious tax debt, the offer in compromise is an agreement reached between the IRS and party in question to settle an amount owed for less than originally due. This step also requires a filing fee ($186) and may be rejected for numerous reasons. 

Rarely will this be a step to which the IRS is in agreement but there are rare instances where this method would apply. 

The accounting and tax experts at Bloch, Rothman, and Associates are ready to assist you with any filing requirements or discuss an individual situation where money may be due but cannot be afforded at this time. Our highly trained associates can help ensure that you not only receive the best service possible but also pay only the appropriate and required amounts for your individual or business income taxes. Known for providing expert advice and financial assistance, the professional staff at Bloch, Rothman, and Associates can also help with a variety of other accounting, bookkeeping and payroll options on an individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in any other tax area our staff is ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.
 

Small Business owners are faced with a number of different challenges which can inhibit their ability for success. Those who are able to navigate the different varieties of issues with which they are faced are more likely to generate a profit and in turn, continue on in a positive fashion as opposed to short falls which have the potential of causing a business to fail and close. One of the most common issues with any Denver business involves sales tax administration and  different complications associated with filing the correct amounts when necessary.

Colorado undoubtedly is faced with one of the most unique (complicated) sales tax issuance methods in the entire United States. With a variety of different types of sales tax that all businesses must collect, these discrepancies must be made and properly administered to help small businesses be successful. Although there have been steps to make the complex sales tax reform easier to manipulate, work remains to be done.

The complexity of sales tax for the state can easily be summarized in one simple explanation. For most every state in the Union there is simply one type of sales tax which must be collected by those companies and businesses in their state - one. In Colorado, there “are more than 700 possible combinations” for different types of sales tax issues and regulations which must be not only appropriately collected but also reported to maintain compliance with the state.

Home Rule City

Home rule cities essentially determine their own form of self government provided the rules and regulations instituted follow the Constitutional outlines provided by the federal government. In these instances many of the same regulations apply but it also allows for a variety of different variations for tax incentives and applications. These are what have allowed the Colorado implications to increasingly flow out of control providing an enormous amount of different applications and associations for sales tax administration.

Application and Assertion

Instead of having to spend enormous amounts of time on determining which applications are correct and what exactly should be reported or charged, there are alternative methods available for administration. Electing to move these distinct applications to an outside agency will employ a more beneficial response to all of the other methods associated with running a small business.

Instead of having to determine if an appropriate amount of tax is being applied and sent in when required, then employees and those working in succession for the benefit of an organization can focus their efforts on what matters - customer service, assistance, and the bottom line. These help to eliminate a need for continually crunching numbers and hoping the success of a business isn’t thwarted by a particular tax administration.

The accounting and tax experts at Bloch, Rothman, and Associates will be pleased to help eliminate this particular burden and cover the sales tax association for your business. Our highly trained associates can help ensure that you not only receive the best service possible but also pay only the appropriate and required amounts for sales tax reporting. Further, they are willing and ready to assist in filing via the method most specific to your individual situation for any due tax. Known for providing expert advice and financial assistance, the professional staff at Bloch, Rothman, and Associates can also help with a variety of different accounting, bookkeeping and payroll options on an individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.

For both individuals and business owners, tax deadlines can be a cause of concern - especially if/when money is due to the Internal Revenue Service (IRS). For individuals, this typically may only occur once during the calendar year in April but for business owners the due dates vary depending on their specific reporting deadlines for various taxes owed throughout the year (i.e. payroll taxes). IRS payments may be required weekly, monthly, quarterly, or almost any other specific time frame depending on the business in question and their payroll schedule and reporting amounts.

The two most common amounts of money requested from the IRS involve late payments regarding any of the above described situations. These non-made payments are then subject to two of the most common fees associated with the IRS in regards to monies owed. Both penalties, for making a payment late, and interest, the amount added to a baseline payment based on a percentage of the amount, can be added to a previously requested amount which is not paid in full by the assigned due date.

IRS Penalty

A specified amount based on the violation of a tax situation revolving around both the amount and date a tax is due. Penalties assessed by the IRS typically are a result of a few common factors whether the subject is an individual or business entity.

Failure to either file or pay your taxes by the deadline will result in a penalty of some sort being implemented by the IRS. Also, those who have estimated taxes due based on a prior year’s return may also be subject to a penalty should a similar situation arise and the appropriate amount of estimated taxes have not been paid.

IRS Interest

On top of the initial penalty, the IRS may also elect to add interest to the original amount due since it is being submitted late. Interest rates are subject to quarterly adjustments and interest for individuals will accumulate until paid in full by the appropriate party.

Understanding penalties and interests associated with your tax situation, whether an individual or business, can serve to benefit you well into the future. Also, an understanding of why the penalties and interest have been levied can help in any attempt to dismiss either of the fines.

If you have received an official IRS notification via mail of penalties and interest owed on a tax, then the accounting experts at Bloch, Rothman, and Associates will be pleased to assist you in determining your best possible course of action. In certain situations the penalty may be dismissed by the IRS but interest will typically always be a required payment. However, if the individual or business can prove the late payment as a result of the IRS or their representative, then both assessments may be eliminated. Further, they are willing and ready to assist in filing via the method most specific to your individual tax situation. Known for providing expert tax advice and assistance, the professional staff at Bloch, Rothman, and Associates can also help with a variety of accounting, bookkeeping and payroll options on an individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.