The IRS is apparently trying to add online access to your tax records. It comes at a hefty price tag, and for now it is just a faint promise. It would be a great tool if they could create this access without any security issues. Hey, the banks do it with equally sensitive information, so why can't the IRS? I'll admit I have some doubts and concerns.
But the lure of not spending large amounts of time on hold to speak to an IRS representative so that they can mail or fax an account transcript is very appealing. This move would make communication between the IRS and taxpapers/preparers so much easier, and would free up the phone lines for more complex issues than ordering a transcript.
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We are all way to familiar with sales taxes, but what exactly is a use tax?
The state of NC would love for you to be better informed of your use tax responsibilities. If you buy something outside of NC and bring it/ship it here for use, then you are liable for use tax. It is the same rate as the sales tax, and submitted in the same way.
If you are a business you would submit the use tax when you submit your sales tax due each month. If you are an individual the state of NC has made it easy for you to submit your use tax on your personal tax return. You can either use a table to estimate your use tax liability (based on your income level), or you can report actual out of state purchases.
This is becoming more and more of an issue for states as they lose more money to out of state retailers with an online presence like Amazon. But don't think that just becuase Amazon doesn't charge sales tax on your purchase that you are off the hook. According to the law, responsibility for paying the use tax on that purchase lies with you, the purchaser.
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Sales and Use Tax Home - NCDOR
The state of NC would love for you to be better informed of your use tax responsibilities. If you buy something outside of NC and bring it/ship it here for use, then you are liable for use tax. It is the same rate as the sales tax, and submitted in the same way.
If you are a business you would submit the use tax when you submit your sales tax due each month. If you are an individual the state of NC has made it easy for you to submit your use tax on your personal tax return. You can either use a table to estimate your use tax liability (based on your income level), or you can report actual out of state purchases.
This is becoming more and more of an issue for states as they lose more money to out of state retailers with an online presence like Amazon. But don't think that just becuase Amazon doesn't charge sales tax on your purchase that you are off the hook. According to the law, responsibility for paying the use tax on that purchase lies with you, the purchaser.
Article
Sales and Use Tax Home - NCDOR
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Two new schedules in one year! So much for tax code simplification I guess.
First it was Schedule L, and now we have the introduction of Schedule M. It will be used to help taxpayers know if they qualify for making work pay and retiree credits.
If you are paying your tax preparer by the page (Jackson Hewitt, HR Block, Liberty), beware. These groups must be lobbying congress to add additional schedules to pad their bottom line.
The good news if you are a client...I charge by the hour and not by the page, and the computer fills out forms like these effortlessly.
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First it was Schedule L, and now we have the introduction of Schedule M. It will be used to help taxpayers know if they qualify for making work pay and retiree credits.
If you are paying your tax preparer by the page (Jackson Hewitt, HR Block, Liberty), beware. These groups must be lobbying congress to add additional schedules to pad their bottom line.
The good news if you are a client...I charge by the hour and not by the page, and the computer fills out forms like these effortlessly.
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People are suffering from layoffs and tighter budgets due to the downturn in the economy. The state of NC decided that a tax hike in sales tax, income tax, and various other "fees" was just what we needed in order to get everything back on track. Everything in their arena that is.
Today the NC state sales tax rate goes from 6.75 to 7.75% here in wake county.
The general assembly and governor also signed an "income tax surcharge" into effect. A very creative way of saying tax hike.
This is supposedly a "temporary" measure. The extra cent charged on every $1 in purchases expires July 1, 2011, while the income tax increase expires at the close of 2010. Don't hold your breath.
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Today the NC state sales tax rate goes from 6.75 to 7.75% here in wake county.
The general assembly and governor also signed an "income tax surcharge" into effect. A very creative way of saying tax hike.
This is supposedly a "temporary" measure. The extra cent charged on every $1 in purchases expires July 1, 2011, while the income tax increase expires at the close of 2010. Don't hold your breath.
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This can be a tricky question if you own a business and acquired an asset in some other way than by just purchasing it. This website is helpful and offers answers to many of the scenarios that business owners encounter. Link
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If so, there are many tax considerations that will impact how you want to structure the sale. The Buyer and Seller have very different interests when it comes to the tax law, so make sure you understand the offers and how it will effect you personally. This article is a good introduction to the topic.
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If you have made some income on the side the IRS will require you to report it. The question is how much can you claim as expenses. If the activity is a hobby, then you can claim expenses up to the income, but not to the point of giving you a loss. If the activity is a bona fide business, then you can claim all of your legitimate business expenses and take a loss on your tax return. This article helps explain the differences in a hobby and a business according to the IRS.
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