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December, 2009
Critical Notice Corporate Officers
Corporate officers must complete, sign and mail or FAX the Corporate Officer Exemption Form by January 15, 2010.
If you fail to do so, you will be subject to state unemployment tax. Generally, it saves money.
Form available at: http://www.esd.wa.gov/uitax/corporateofficers/corp-officer-fam.pdf#zoom=100 (If you are not able to access the page with the above link, copy/paste it into your Internet browser.) This is due by January 15, 2010.
Because the law requires two signatures for each corporate officer exempted, print a separate form for each officer. The exempted officer must voluntarily agree to be exempt and sign the form.
In addition, a second officer (if there is one) must also sign the form.
If you have any questions, the FAQ is available at: http://www.esd.wa.gov/uitax/corporateofficers/exempt-officers-defined.php
ALSO, if you believe you have not paid enough estimated tax and own your own business, you should increase your January 15, 2010 estimated payment.
If you have any questions please contact us.
December, 2009
Critical Notice for S-Corporations
If you have not taken a wage for your S-Corporation in 2009, you MUST DO SO NOW. All corporate officer payroll checks must be dated by Dec. 31, 2009, and the federal tax liability must be paid by January 4, 2010. Many banks are no longer taking 941 payments, and the IRS is pushing for everyone to pay electronically through EFTPS. It is really quite simple. Go to www.eftps.com and click on Enrollment. The prompts will take you through the steps to enroll. It is important that you sign up now, as opposed to the end of the month. Enrollment can take up to 15 days, SO ACT NOW!! If the IRS does not receive your payment you will be subject to penalties and interest, and you can no longer get out of paying these fines.
If you are unsure as to how much to take in wages, send us a copy of your Balance Sheet and P & L Statement and we can help you determine an amount. But do not wait too long----we need some time.
If we have been preparing your 941 Payroll Reports for you we still can, provided that you give us the numbers. This quarter you cannot file 0 wages if you have net income for 2009. The 941 return is due January 31, 2010. The 940 return, W-3s and W-2s are also due by January 31, 2010. But again, the tax payment for the 4th quarter is due January 4, 2010.
If you have any questions please contact us.
July, 2009
Single Member LLCs that are Subchapter S Corporations: Why you must file all quarterly payroll tax reports with the IRS and state agencies (940 and 941).
At the end of each quarter, whether or not you have paid any wages to yourself during the quarter, you must file IRS Form 941, and also file with State Unemployment and L&I, if you are signed up for those. You must fill out and submit those forms, marking that there were no wages paid.
You must file these payroll tax reports. Otherwise, you will receive a notice. Yes, even if you have no employees and paid no wages during the quarter, you must still file the form and report zero. Attached is an example of how 941s should be completed. Not doing this will generate an IRS notice. We have had a number of these cases in the last few months and we cannot handle them all. Simply, this is one of the things you must do, whether you pay wages or not, in order for you to reap the benefit of an S Corporation.
Please feel free to contact our office if you have any questions.
June, 2009
FBAR: Do you have a foreign bank or brokerage account valued over $10,000?
You have until June 30th to file a Report of Foreign Bank and Financial Accounts (FBAR), US Treasury form TD F 90-22.1. It's a simple form requiring only the most basic information. FBAR forms and instructions are available at: FinCEN. Click "Other Forms" and select TD F 90-22.1
But do not panic; the IRS is aware some taxpayers have just become aware of this filing requirement. The IRS is allowing more time for taxpayers to file this report. Please follow this link for additional information: http://www.irs.gov/newsroom/article/0,,id=210174,00.html
This form can only be mailed to the IRS. While you may not have been aware of this annual filing requirement, we are here to answer any questions you may have.
February, 2009
The Stimulus Bill
As most of you know, President Obama signed the Stimulus Bill last week. It contained 282 changes to the Tax Code. See the February Tax Tips article for more information.
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To ensure compliance with requirements imposed by the IRS, we inform you that (i) any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
