Should You File an Amended Tax Return?

Made a Mistake? Need to Amend a Previously Filed Tax Return?

Peter Alizio Income Tax

Amending My Income Tax Return, a short video from our friends at the IRS… Why would a taxpayer amend a tax return? Generally speaking the majority of taxpayers will amend their tax return if they omitted income or deductions on the originally filed tax return. However, taxpayers may file an amended tax return for various other reasons like to change the …

MFJ OR MFS?

Recently Married? Is it Better to File Jointly or Separately?

Peter Alizio Income Tax

Income Tax Return – MFJ vs MFS  This is a question every tax professional will get asked 5+ times a week during tax season.  I just got off the phone with my recently married friend (the wedding was nice) who inquired if it would be beneficial to file jointly or separately.  I have been getting asked this question over and …

How to File a Tax Return Extension

Peter Alizio Income Tax

It is important for taxpayers to understand that a tax return extension is an extension of time to file your income tax return and not an extension of time to pay the tax.  Extensions are generally needed when information necessary to file a complete and accurate tax return is not available until after the filing deadline. This is an all …

s-corporation reasonable salary

S-Corporations and the Reasonable Salary

Peter Alizio S-CORP

The legal entity chosen by a business will determine its income tax filing requirements. In other words, the business structure will define the legal and tax compliance requirements of the business.  That being said, “S-Corporations” are very popular in the small business community.  An “S-Corporation” is a corporation that has made a tax election to be treated for tax purposes …

NY SALES TAX RESPONSIBLE PERSON

Are you a Responsible Person?

Peter Alizio Sales Tax

NYS – RESPONSIBLE PERSON ASSESSMENTS Not all business owners understand that sales tax money is NOT revenue when collected and a deduction when remitted to tax authorities.  In fact, any sales tax money collected does not belong to the businesses or owner at all.  When you register to collect sales tax (by applying for a certificate of authority) you become …

New York State Department of Tax and Finance - Drivers License Suspension

If You Do Not Pay Your Taxes, You Could Lose the Privilege to Drive! 

Peter Alizio NYS Collections

License Suspended for Unpaid Taxes:  Since 2013 the Department of Taxation and Finance (“Tax Department”) and the Department of Motor Vehicles (“DMV”) have been working collectively in furtherance of a Driver’s License Suspension Program. This program takes the position that driving is a privilege and if you do not pay your taxes, you could lose that privilege.  Taxpayers who owe $10,000 or …

SMLLC DISREGARDED ENTITY

Accounting for LLC Conversions – Change in IRS Classification

Peter Alizio LLCs

I previously expressed my love for LLCs here.  I like that a Single-Member LLC (“SMLLC”) is a disregarded entity for income tax purposes and does not need to file a separate stand-alone tax return. If the SMLLC is owned by an individual the income and expenses of the LLC are reported on Form: 1040; Schedule C. This will save the …

FORM 1099-MISC

IRS FORM: 1099-MISC

Peter Alizio Income Tax

IT IS NOW TIME TO START PREPARING IRS FORM 1099-MISC NOTE: 2017 FORM 1099-MISC, reporting nonemployee compensation (box 7) is required to be filed on or before January 31, 2018. The IRS penalty for failing to file 1099(s) is now $250 for each incident. In addition, the following tax returns: 1065 (partnership return), 1120 (corporate return), 1120S (s-corporation return), 1040 …

IRS Passport Revocation

OWE THE IRS $50,000 IN BACK TAXES LOSE YOUR PASSPORT

Peter Alizio IRS Collections

IRC Section 7345: “Revocation or Denial of Passport in case of Certain Tax Delinquencies” was added to the Internal Revenue Code about a year ago (December 2015).  This law gives the IRS the ability to certify taxpayers that owe: seriously delinquent tax debt*.  Once certified, the IRS will transmit a certificate to the Secretary of State that will have the …

Never Hold Real Estate in a Corporation

Peter Alizio LLCs, S-CORP

In my younger professional days I was told that real estate should never be held in a corporation. I would repeat this over and over again in my career until someone asked me to explain why real estate should not be held in a corporation.  This article will answer that question:  Why real estate should not be held in a corporation …