Your Tax Place, Inc. - Tax Savings Strategies

  Do you pay your workers as EMPLOYEES or CONTRACTORS? With the NEW YEAR now here, it's TIME TO GET THIS RIGHT! One of the most recent HOT TOPICS with both the IRS and the DOL is to investigate businesses for the MISCLASSIFICATION of their WORKERS. For the past few years, businesses have misclassified their workers as contractors instead of employees in order to save 7.65% in matching payroll taxes. Because these businesses have been able to get by without being monitored and corrected, these business owners have become comfortable with this process and don't think they are doing anything wrong. In fact, because a lot of businesses have been operating this way, new business owners starting up the same business believe that it is ok to operate like this as well. The IRS has been aware of this problem and now are about to use their newly hired employees to become very aggressive about correcting this KNOWN PROBLEM to assess back withholding taxes and penalties to those

  2022 tax season is about to begin, here are a few things that I experienced with my clients that you will want to do in preparation of the next tax season: 1. Get your receipts organized NOW and sent to your tax preparer EARLY.  If you are the DYI type and don't use a bookkeeping service, it is better for both YOU and YOUR TAX PREPARER to get your receipts separated and totaled by expense and sent to her several weeks before the due date. This will give her time to review the receipts for deductibility and accuracy before reporting it on the tax return. 2. Create a file folder to keep your tax forms like W2, 1099, Profit/Loss statements, brokerage statements, closing documents for house purchases, estimated tax payment confirmations until tax time. 3. If you purchased a home in 2022 or earlier, locate the original closing statement for the home purchase and KEEP IT FOREVER! Or, at least until you sell it. Your tax prepar