State Tax

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:

Palm Beach County is Seeking Tax Relief for Domestic Partners

Several days ago Gay Rights advocates celebrated the U.S. Supreme Court decision to strike down laws that denied federal benefit rights to same-sex couples.

In the state of Florida, however, laws ban same-sex marriage so domestic partners of the counties employees are made to pay taxes on benefits the county offers. This has been the case since 2005.

Commissioner Mary Lou Berger publicly suggested that needs to change and soon. Berger has requested that the counties legal and financial teams’ investigation ways to reimburse domestic partners for the extra tax they are made to pay.

At this time it is still unknown what the change will cost tax payers if the commission votes to pass a tax reimbursement plan. Last year alone Fifty-five domestic partners were registered with the county to receive the benefits.

Just last month Miami Beach passed a new ordinance that offered a type of double reimbursement. The reimbursement pushes the total take-home pay for domestic partners closer to equal. Palm Beach County is now studying Miami Beach’s model.

“One option is that they follow the city of West Palm Beach, which calculates the employee’s income and tax bracket and reimburses the value of the federal tax, said Rand Hoch, president of the Palm Beach County Human Rights Council.”

Back in June the repeal of the Defense of Marriage Act back prohibited the government from denying benefits to same-sex married couples, but it does not change the laws in 35 states that restrict gay marriage.

“There’s not a whole lot that we can do with these types of issues because we don’t recognize gay marriage in the state of Florida,” Berger said.

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Posted by Taxmaster - January 1, 2014 at 12:48 am

Categories: Income Tax, State Tax   Tags:

Court Rules that Alabama’s Fuel Tax is Discriminatory

The United States 11th Court of Criminal Appeals ruled this week that Alabama discriminated against railroads. This ruling comes due to the fact that railroads were made to pay a tax on fuels. Industries such as trucking and barges that compete with railroads were not required to pay the fuel taxes.

Court records show that CSX Railroad was paying a four percent sales tax on their diesel fuel purchases in the state of Alabama. Competing companies did not pay these taxes. .

CSX filed a lawsuit back in 2008 against the state Department of Revenue, but the district court ruled that “because the State’s motor carriers paid a roughly equivalent amount in taxes pursuant to the State’s fuel excise tax, the motor carriers’ exemption from the sales tax was not discriminatory. The district court had found that “the tax rate imposed per gallon of diesel fuel for rail carriers and motor carriers is essentially the same”

CSX appealed that decision.

In the appeal the U.S. 11th Court of Criminal Appeals ruled that Alabama did indeed discriminate against railroads by not taxing their competitors for the same fuels.

The court stated that “the state didn’t offer good enough justification for exempting the company’s competitors from paying the tax.

“In short, after establishing a comparison class of competitors and showing that its competitors did not pay the sales tax on diesel fuel purchases, CSX made a prima facie showing of discrimination under (the Railroad Revitalization and Regulation Reform Act of 1976),” the appeals court ruled.

“The burden shifted to the state to provide a ‘sufficient justification’ for the exemptions. It did not. We reverse the district court, hold that the State’s sales tax violates the 4-R Act (Railroad Revitalization and Regulation Reform Act), and remand to the district court with instructions to enter declaratory and injunctive relief in favor of CSX consistent with this opinion, “ the court ruled.

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Posted by Taxmaster - December 25, 2013 at 12:46 am

Categories: State Tax, Tax Law   Tags:

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