KF Tax and Accounting P.C.

A Gap in Tax

Just like everything else, a tax gap means a difference between two sides. Specifically, the tax gap is the difference between total taxes owed and taxes paid on time which puts government programs at risk. Learn more at https://tpc.io/3YB22rP.

What is the tax gap? OVERVIEW The Internal Revenue Service (IRS) estimates that over the past 30 years, the tax gap has ranged from 16 to 20 percent of total...

Tax return providers are professionals who help individuals and businesses file their taxes accurately and efficiently. Working with a tax return provider gives you peace of mind knowing your taxes are handled by an expert.

When Is the Deadline?

Filing your business tax return on time is critical to avoid penalties and interest charges. Make sure you know the deadline for your specific business entity to file your return well before that deadline. Consider filing electronically for quick processing.

S corporations are a popular form of business entity that offers liability protection and pass-through taxation. Unlike C corporations, S corporations are not subject to federal income tax. Instead, the profits and losses of the business are passed through to the shareholders and reported on their tax returns.

This type of entity must file an annual tax return and provide each shareholder with a Schedule K-1, reporting their share of the company's income, deductions, and credits - along with various eligibility requirements, including a limit on the number and types of shareholders.

As a business owner, you may be eligible for a variety of tax deductions and credits that can help lower your tax bill. Consult with a tax professional or accountant to learn more about the deductions and credits that apply to your specific business.

Spending by Mission

Our taxes ultimately go to where these are needed - to improve our society. The government allocates taxes in different categories: justice, defense, welfare, and others. Read how the US spends our taxes at https://bit.ly/3yxWl3i.

USAFacts Financial Analysis Methodology - USAFacts Understand how we arrive at statistics on government revenue, spending, and debt, as well as on family and individual income and taxes.

Business tax filing can be complex, but staying organized and keeping accurate records throughout the year can make it much easier with accounting software. It will help ensure that you're able to file an accurate and complete return.

The Employee Retention Credit (ERC) is a tax credit designed to encourage employers to keep employees on their payroll during the COVID-19 pandemic. The credit was created as part of the CARES Act in 2020 and expanded in subsequent legislation - a crucial lifeline for many businesses struggling to retain their workforce during the pandemic. The credit is calculated as a percentage of qualified wages paid to employees and can be claimed on quarterly employment tax returns.

Determining Withholding

Have you been thinking about how your tax deduction is computed? The amount withheld is based on the amount of income earned and information an employee gives to their employer. Learn more at https://bit.ly/3yPLVw9.

How to get tax withholding right | Internal Revenue Service FS-2023-01, January 2023 — The federal income tax is a pay-as-you-go tax. Taxpayers pay the tax as they earn or receive income during the year. Taxpayers can avoid a surprise at tax time by periodically checking their withholding amount. The IRS urges employees and those who receive a pension or a...

One of the benefits of filing your individual tax return on time is that you'll receive any refunds owed to you sooner. Or, you have more time to address any issues or discrepancies on your return before the deadline.

Income and Expenses

If you're self-employed, don't forget to include all your business income and expenses when filing your individual tax return. Income can come from freelance work, consulting, or selling products. Deducting eligible expenses can help lower your tax bill.

Individual tax filing can be a daunting task, and mistakes can lead to penalties, audits, or even legal issues.

Some common errors include incorrect Social Security numbers, math errors, filing under the wrong status, failing to report all income, claiming ineligible deductions or credits, and missing deadlines.

Taxpayers also often overlook state taxes or forget to include necessary schedules or forms. To avoid these mistakes, it is crucial to keep accurate records, double-check all information, seek professional help if needed, and file on time.