Income Tax

BIR: Nobody is an exception against tax evasion

Politicians and wealthy personalities are not exempted to pay their fair share of taxes to the government.

Bureau of Internal Revenue (BIR) commissioner Kim Henares emphasized in the course of criticism that the BIR has gone cheating on asking the small-time individuals to pay taxes and getting the rich people away from any tax obligations.

Henares also addressed this leakage towards self-employed and professional workers who are not giving up their financial obligation to the government.

The Professional Regulations Commission hereby showed that there were 3 million registered professionals, among them doctors and lawyers who earned more than their waged worker counterparts.

Taxpayers remitting their shares fairly would have had a big impact to the progress of the country and would be able to reach a collection goal of Php 768.3 billion, 62.7 percent of BIR’s total collection goal (Php 1.225 trillion) for this year.

To counter this problem, the government plans to enhance the audit process through the use of technology and information-based solutions. These would help to identify the country’s taxpayers which are at high-risk of non-compliance.

It also intends to improve information linkages with other government agencies through statistical analysis.

If all are traced reasonably, it would be a good implication that the country tends to boost its revenue collection for the implementation of the local and national projects; giving rise to the law-abiding citizens and a fair status at all levels of the society.

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Posted by Taxmaster - January 20, 2014 at 1:23 am

Categories: Federal Tax, Income Tax, Tax Evasion, Tax Law   Tags:

Regard Taxes for Small Business Startups

Are you one of those who are planning to venture into a small business? Are you someone who happens to stay at home out of retirement, often consider running a business as a hobby? More than just a pleasure, one must find the following factors to get away from financial burden as a taxpayer:

  • Exert more time and effort to profit.
  • Change methods of operation to improve profit.
  • Consider advisers to succeed in the chosen business.
  • Have long-term goals.

Once you decide to move forward with your profit-making activity, you’ll want to get briefed on taxes. Fortunately, there are publications from the Internal Revenue Service (IRS) that offer free lessons on the basics of paying taxes. Some of these include:

  • Business taxes and forms
  • Electronic filing and paying of taxes
  • Tips on running a business out of home
  • Federal taxes for newly hired workers
  • Hire workers who reside out of citizenship
  • Ways on how to set up a retirement plan
  • Ways of managing the payroll for the workers
  • Ways of making tax deposits and filing payroll tax report

Making a profit is above anything. If your business operates for at least five years, make the first three profitable things you can do to pass any blocks that may come on your way.

As a bottom line, running up a small business after retirement is about having fresh ideas, marketing, sales, hard work- and taxes. And, it’s very nice to make yourself restart and succeed for another round.

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Posted by Taxmaster - January 15, 2014 at 1:19 am

Categories: Federal Tax, Income Tax, State Tax   Tags:

New Taxes and Fees to Pay for ObamaCare

Even though you may not support the promotion of ObamaCare someone has to pay for it.

The Affordable Care Act has added new fees and taxes to do just that. Some of these new taxes and fees directly affect insurers. The Act has added seventeen new taxes that will affect most Americans directly in some way.

The one question everyone wants an answer to is how much it will cost the world of struggling small businesses. It appears that small businesses with at least 50 employees and do not currently offer health insurance to their employees could take the hardest hit.

The Kaiser report states that, “more than 90 percent of businesses with 51 or more workers already provided coverage in 2011 and only 57 percent of businesses with 50 or fewer employees provided health benefits.”

Critics of ObamaCare believe that it will hurt business expansion and job growth. Advocates feel in the end it will save businesses money.

Here are a few of the new taxes that will go to pay for ObamaCare:

ü      “3.8% surtax on investment income. This is for anyone who has an adjusted gross income of more than $200,000.”

ü      “0.9% surtax on Medicare taxes. This is for those who make more than $200,000.”

ü      “Any Flexible Spending Account contributions will be capped off at $2,500.”

ü      “Itemized-deduction for medical expenses is going up to $10,000.”

ü      “Penalties on non-medical withdrawals from Healthcare Savings Accounts have risen from 10% to 20%.”

ü      “Indoor tanning services will see a tax of 10%.”

ü      “Starting in 2018 the “Cadillac Health Care Plans” will get a 40% tax.”

ü      “Tax that eliminates the ability to pay for over-the-counter medicines.”

ü      “For those who do not purchase health insurance they will see a penalty tax…”

ü      “Medical devices that cost more than $100 will also be taxed.”

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Posted by Taxmaster - January 10, 2014 at 12:51 am

Categories: Federal Tax, Income Tax, Tax Law   Tags:

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