G&S Accountancy

Owing old balances to the Franchise Tax Board (FTB) can be a stressful experience. Whether it’s due to a failure to file taxes, underpayment of taxes, mistakes on tax returns, audit adjustments, or non-payment of previous balances, it’s important to take steps to pay the dues or late payment penalty as soon as possible to avoid late filing penalty and interest accrues.   In this blog, we’ll discuss how to review your account with the FTB and franchise tax board common penalties. We’ll also discuss how to set up a payment plan, pay the dues, and consider a settlement when a taxpayer fails to pay dues timely. Reasons that could Lead to Owing Old Balances with FTB There are several circumstances when a taxpayer fails to pay all dues and owe old balances with the Franchise Tax Board (FTB) which are as follows: Failure to file taxes: If you fail to file your California state income tax return on time, the FTB may assess a late filing penalty and interest charges on any unpaid tax owed,...

Tax planning is a vital tool for managing your financial landscape. It’s not just about reducing your tax liability for the current year but also about planning for future years. Understanding the nuances, such as the timing of income and deductions, can lead to significant tax savings.    What is Tax Planning? Tax planning is the process of reviewing various options for conducting business and personal transactions with the aim of reducing tax liability. It involves making decisions on the timing and method of completing transactions as well as the reporting of income, deductions, and credits. The primary goal is to minimize income taxes as much as legally possible. Tax planning is considered an integral part of financial planning, and it often requires the advice of professionals like attorneys or certified accountants . What is it and why should I care? Tax planning is essential because it can result in substantial tax savings. The opportunity for tax planning generally end...

When you run a business as a sole proprietorship, it means you personally own the business assets. In case of a single-member LLC treated as a sole proprietorship, the law treats you as if you personally own the assets. So, in both cases, selling the business automatically becomes asset sale for tax implications. As a result, you will need to report any taxable income or losses from the sale on your personal tax return, which is Form 1040. You can also choose the option ‘sale assets’ of a business operated as a corporation, partnership, or a multi -member LLC treated as a partnership. But sellers often prefer ‘selling your ownership interest,’ for two reasons: No ongoing business-related liabilities. Tax advantages from the sale are generally treated as a lower-taxed long-term capital gain. In contract, buyers prefer asset sales for the following reasons: Buyers can avoid exposure to unknown future liabilities related to the business. When you buy assets, their basis is “stepped up”...

Business tax planning is a critical aspect of running a successful venture. It involves not just economic planning for the current year but also making informed tax decisions that will benefit the business in the long run.  The choices you make, from the type of business structure you choose to how you finance your operations, can have significant tax implications. Understanding these nuances can help you make sound tax decisions that align with both your short-term and long-term business goals. Why is tax planning important for my business? Tax planning is crucial because it involves making wise tax decisions that will benefit your business for years to come. It’s not just about economic planning for the current year; it also takes into account both short-term and long-term goals. Effective tax services Rancho Cucamonga CA ensures that the choices you make when starting your business will continue to offer tax advantages in the following years. What types of business structures a...

Tax plays an important role in today’s world and keeping it in check is an essential part of it. Have you ever been curious about how your spending money is taxed? Are you aware of the tax status you are in? How much tax did you pay or saved in a given year? These are all important questions to consider when filing your taxes, and having a tax preparer Ontario CA by your side is often the best way to make sure all of your finances are in order.    The Internal revenue service (IRS) provides several services to help taxpayers with their federal taxes. These services are known as tax resolution services, and they can provide valuable assistance to individuals and businesses alike. Here are some of the most common tax resolution services California : IRS Audit Representation If you receive an audit notification from the IRS, this service can provide you with an experienced representative who can help you understand the process and represent you during the audit. Non-Filed Tax Re...

Small businesses operate locally in a city or state. Such businesses pay attention to business operations more. And instead of hiring professionals, they go for expert services. For instance, a local CPA for small business is quite popular. Local CPA services help small businesses a lot. Such services deal with a lot of concerns on behalf of their clients & help them attain several goals. Here is what such local CPA services do for their customers. Monthly & Quarterly Services: Every month or every quarter, local CPA services help small businesses with a range of services. For instance, they take care of bank reconciliation, generate income statements & balance sheets, handle the general ledger, and provide timely consultation. Normally, all these services help small businesses handle the accountancy part easily. As a result, the financial department remains a bit balanced all the time & is less likely to face problems. Tax Services: Local CPA services for small busine...

In today’s time, the workforce is changing continuously. Today, many individuals want the flexibility to live life as they want and for this, they are going for freelance and gig work. But along with this freedom, they also have to take the responsibility of managing their personal finances and tax planning. However, freelancers and gig workers face specific tax challenges that will be different from traditional employees. They may find it difficult to understand taxes and should connect with tax preparation Fontana professionals who can guide them in this. Keep on reading to find out more about how tax professionals can help them with their tax savings. Self-employment tax The first thing you need to understand as a freelancer or gig worker is the self-employment tax. Traditional employees have to face different kinds of tax because it is deducted from their paychecks. Self-employed individuals have to be responsible for paying taxes for both the portions of employer and employee. Wi...