5 Different Types of IRA’s

IRS Tax Tip 2022-107, July 14, 2022

There are many ways people plan for retirement. Individual Retirement Arrangements, or IRAs, are a common one. Listed below are the 5 Different Types of IRA’s. IRAs provide tax incentives for people to make investments that can provide financial security when they retire. These accounts can be with a bank or other financial institution, a life insurance company, mutual fund, or stockbroker.

Here are some things to know about a traditional IRA.

  • traditional IRA is a tax-advantaged personal savings plan where contributions may be tax deductible.
  • Generally, the money in a traditional IRA isn’t taxed until it’s withdrawn.
  • There are annual limits to contributions depending on the person’s age and the type of IRA.
  • When planning when to withdraw money from an IRA, taxpayers should know that:
    • They may face a 10% penalty and a tax bill if they withdraw money before age 59½, unless they qualify for an exception.
    • Usually, they must start taking withdrawals from their IRA when they reach age 72. For tax years 2019 and earlier, that age was 70½.
    • Special distribution rules apply for IRA beneficiaries.

Roth IRAs are like traditional IRAs, but there are some important differences.

A Roth IRA is another tax-advantaged personal savings plan with many of the same rules as a traditional IRA but there are exceptions:

  • A taxpayer can’t deduct contributions to a Roth IRA.
  • Qualified distributions are tax-free.
  • Roth IRAs don’t require withdrawals until after the death of the owner.

Here are a few other types of IRAs:

  • Savings Incentive Match Plan for Employees. A SIMPLE IRA allows employees and employers to contribute to traditional IRAs set up for employees. It is suited as a start-up retirement savings plan for small employers not currently sponsoring a retirement plan.
  • Simplified Employee Pension. A SEP IRA is set up by an employer. The employer makes contributions directly to an IRA set up for each employee.
  • Rollover IRA. This is when the IRA owner receives a payment from their retirement plan and deposits it into a different IRA within 60 days.

More information:

 

Contact ATS Advisors with any questions today about the 5 Different Types of IRA’s

Michigan Income Tax Calculator

Welcome to ATS Advisors, your trusted Michigan tax professionals!

Listed here is a free Michigan Income Tax Calculator: CLICK HERE

Questions? Contact ATS Advisors today!

What You Need To Know About Michigan State Taxes

The state of Michigan requires you to pay taxes if you’re a resident or nonresident that receives income from a Michigan source. The state income tax rate is 4.25%, and the sales tax rate is 6%.

Michigan Income Tax Brackets and Rates

Michigan has a flat tax rate of 4.25% for 2021, meaning everyone pays the same state income tax regardless of their income.

Michigan Tax Exemptions You Didn’t Know About

Located in the State of Michigans 2021 Taxpayer guide is 5 Michigan Tax Exemptions You Didn’t Know About!

Lets begin…

PRINCIPAL RESIDENCE EXEMPTION: A principal residence is exempt from taxes levied by a local school district for operating purposes of up to 18 mills. A homeowner’s principal residence is defined as “the one place where an owner of the property has his or her true, fixed, and permanent home to which, whenever absent, he or she intends to return and that shall continue as a principal residence until another principal residence is established.” Property owners may claim only one exemption. A married couple, filing income tax returns jointly, are generally entitled to no more than one principal residence exemption. However, there are exceptions to these rules. The law allows a temporary, additional exemption for up to three years on an unoccupied homestead listed for sale. Homeowners with a principal residence exemption currently residing in a nursing home, assisted living facility, or other location while convalescing and members of the armed services absent on active duty may maintain the exemption so long as they continue to own and maintain the property, they do not establish a new primary residence, and the property is not used for most commercial and business purposes. A homeowner who vacates their home because of damage or destruction may maintain the exemption for up to three years as long as they demonstrate an intent to move back in. To be eligible for the homeowner’s principal residence property exemption, a taxpayer must file an affidavit with the local tax collecting unit on or before June 1 for an exemption from the immediately succeeding summer tax levy and November 1 for an exemption from the immediately succeeding winter tax levy. Once filed, exemptions are valid in future years until rescinded. A denial of this exemption may be appealed to the Michigan Tax Tribunal. The appeal must be filed within 35 days from date of notice.

 

FARMLAND (QUALIFIED AGRICULTURAL) PROPERTY EXEMPTION: Farmland may be exempt from taxes levied by a local school district for operating purposes of up to 18 mills. Farmland must be determined to be qualified agricultural property. The state has defined qualified agricultural property as “unoccupied property and related buildings classified as agricultural, or other unoccupied property and related buildings located on that property devoted primarily to agricultural use.” If a property is classified as agricultural for assessment purposes, a property owner does not need to take any action to receive the exemption, unless requested by the local assessor. Otherwise, a property owner must claim an exemption by filing an affidavit with the local tax collecting unit on or before May 1. In some cases, a partial exemption may be approved if part of the property is used for non-agricultural purposes. An exemption remains in place unless withdrawn or until rescinded. A denial of an exemption may be appealed to the local board of review. A board of review decision may be appealed to the Michigan Tax Tribunal within 35 days from the decision.

 

POVERTY EXEMPTION: A person may be eligible to request a poverty exemption from property taxes if they, at a minimum, own and occupy the property as their homestead, demonstrate evidence of ownership and identification, and meet poverty income standards. The local board of review makes the determination if the exemption should be granted or denied based on the guidelines for both income and asset levels adopted by the local unit of government. To be eligible for an exemption, a homeowner must apply to the local assessing unit after January 1 but before the day prior to the last day of the board of review. In certain jurisdictions, where permitted by resolution of the local governmental unit, a person who received the exemption in 2019, 2020, or both, or was approved for the first time in 2021, and receives a fixed income from public assistance may receive the exemption for up to 3 additional years without reapplication. March board of review denials may be appealed to the Michigan Tax Tribunal by the end of July. July and December board of review denials must be appealed to the Michigan Tax Tribunal within 35 days of notice.

 

DISABLED VETERANS EXEMPTION: Property owned and used as a homestead by a disabled and honorably discharged veteran is exempt from Michigan property taxes. To be eligible for this exemption, a disabled veteran must be determined by the U.S. Department of Veterans Affairs to be permanently or totally disabled as a result of military service and entitled to veterans’ benefits at the 100% rate, have a certificate from the U.S. Veterans Administration certifying that they are receiving or have received pecuniary assistance due to disability for special adaptive housing, or be rated by the U.S Department of Veterans Affairs as individually unemployable. This exemption is also available to an unremarried surviving spouse of a disabled veteran. An affidavit to qualify for this exemption must be filed annually with the local tax unit. A claim for the exemption is reviewed by the local board of review. A board of review decision may be appealed to the Michigan Tax Tribunal.

 

FARMLAND DEVELOPMENT RIGHTS AGREEMENT OR EASEMENT EXEMPTION: Property owners who own farmland covered by a development rights agreement or easement with the state are exempt from special assessments for sanitary sewers, water, lights, and nonfarm drainage on land covered by the agreement or easement. The exemption does not apply to assessments in place prior to entering into an agreement or easement. In addition, the property owner cannot take advantage of the services financed through the assessment on the exempted land and may be required to pay the assessment if the agreement or easement is ended.

As always, If you have any tax questions, please never hesitate to contact us!

Michigan Tax Exemptions You Didn’t Know About – 2021

Best CPA’s Michigan

Best CPA’s Michigan: Welcome to ATS Advisors, A Certified Public Accounting Firm with a Personal Touch.

ATS Advisors is not just another CPA firm. As your partner we understand your desire to save time and money. With locations in Plymouth, Royal Oak, Allen Park, and Grayling, we work with you, not just for you, to find effective solutions for your needs whether they are tax, accounting, finance, business, or personal.

ATS Advisors offers a wide variety of different services stemming from business and individual services.

Business Accounting Services:

Tax advisory services go beyond just the preparation of a tax return. Our aim is to resolve tax issues before they become tax nightmares. Therefore, our comprehensive tax service begins long before returns are due or financial decisions are made. Our tax advisors rely on the combination of dedicated client involvement, vast technical knowledge, and extensive experience when helping clients achieve their financial goals. We focus on helping clients turn business strengths into tax saving advantages.

Individual Services:

If it’s tax-related, we can help you with it.

Whether you want us to handle the filings or just give you some advice, we can help you with personal income tax returns, trusts and estate-planning, and retirement-planning.

We’ll probably never convince you that doing your taxes is fun, but at least we can make life easier when it’s time to file.

 

The range of solutions that ATS offers is another reason why ATS is one of the Best CPA’s Michigan!

View ATS Advisors LinkedIn or Contact Us Today with any questions!

IRS expands calling options for faster service, less wait time

Assistance for eligible taxpayers in setting up or modifying payment plans now available; more functions planned in 2022 to help taxpayers obtain account information

Voice Bot Video

IR-2022-127, June 17, 2022

WASHINGTON – The Internal Revenue Service today announced expanded voice bot options to help eligible taxpayers easily verify their identity to set up or modify a payment plan while avoiding long wait times.

“This is part of a wider effort at the IRS to help improve the experience of taxpayers,” said IRS Commissioner Chuck Rettig. “We continue to look for ways to better assist taxpayers, and that includes helping people avoid waiting on hold or having to make a second phone call to get what they need. The expanded voice bots are another example of how technology can help the IRS provide better service to taxpayers.”

Voice bots run on software powered by artificial intelligence, which enables a caller to navigate an interactive voice response. The IRS has been using voice bots on numerous toll-free lines since January, enabling taxpayers with simple payment or notice questions to get what they need quickly and avoid waiting. Taxpayers can always speak with an English- or Spanish-speaking IRS telephone representative if needed.

Eligible taxpayers who call the Automated Collection System (ACS) and Accounts Management toll-free lines and want to discuss payment plan options can authenticate or verify their identities through a personal identification number (PIN) creation process. Setting up a PIN is easy: Taxpayers will need their most recent IRS bill and some basic personal information to complete the process.

“To date, the voice bots have answered over 3 million calls. As we add more functions for taxpayers to resolve their issues, I anticipate many more taxpayers getting the service they need quickly and easily,” said Darren Guillot, IRS Deputy Commissioner of Small Business/Self Employed Collection & Operations Support.

Additional voice bot service enhancements are planned in 2022 that will allow authenticated individuals (taxpayers with established or newly created PINs) to get:

  • Account and return transcripts.
  • Payment history.
  • Current balance owed.

In addition to the payment lines, voice bots help people who call the Economic Impact Payment (EIP) toll-free line with general procedural responses to frequently asked questions. The IRS also added voice bots for the Advance Child Tax Credit toll-free line in February to provide similar assistance to callers who need help reconciling the credits on their 2021 tax return.

The IRS also reminds taxpayers about numerous other available self-service options.

 

Contact ATS Advisors today with any questions!

8 Things to Know About a Letter From The IRS

If you receive a letter this year from the IRS, don’t be alarmed. After every tax season, the agency sends out a variety of notices to taxpayers. Not every letter means there’s an impending audit coming your way. Here are 8 Things to Know About a Letter From The IRS.

As always, if you do not feel comfortable, reach out to a tax professional like us here at ATS Advisors for help.

Many of the notices are routine and can easily be resolved. Here’s what to do if one shows up in your mailbox.

1. Stay calm.

Before your heart starts racing, remember that not all IRS letters are delivering bad news. In fact, the large majority can be taken care of fairly quickly and painlessly. You often only need to respond to take care of a notice.

2. The IRS sends letters for all sorts of reasons.

Any notice you receive from the IRS could be about a number of different topics regarding your account or your federal tax return. For instance, the letter could mention any of the following:

  • you have a balance due
  • the IRS has a question about your tax return
  • something on your return was changed
  • you are due a larger or smaller refund
  • you need to verify your identity
  • additional information is requested
  • there’s a delay in return processing

Sometimes letters can wind up being quite lengthy because they also must inform you of your rights and other information required by law. If you need help understanding the letter, contact a tax professional like us here at ATS or call the IRS to ask questions.

3. It could be a change or correction.

You may get a notice that states the IRS has made a change or correction to your tax return. If you do, review the information and compare it with your original return.

4. There are specific instructions.

Each notice should state explicit instructions on what you need to do. As long as you follow them, you likely can take care of the request rather quickly.

Most importantly, do not ignore it! Don’t shove the letter to the side thinking you’ll take care of it later. Many of the instructions within those letters include a due date, so it’s important to take care of it right away. If you procrastinate, another letter will arrive in your mailbox not long after.

5. You shouldn’t have to visit the IRS.

Thankfully, most notices don’t require a call or visit to an IRS office. If you do have questions, however, you can call the phone number located in the upper right-hand corner of the notice. When you call, make sure to have your tax return and the notice in front of you so you can easily refer to specific information and answer any questions the IRS agent may ask.

6. You can agree or disagree with the notice.

Many letters from the IRS will require a response by a specific date. It’s important to comply with that date to minimize additional interest and penalty charges and to preserve your appeal rights if you don’t agree with what’s stated in the notice.

If you agree with the notice, you typically won’t need to reply unless other instructions are listed or you need to make a payment. Follow whatever instructions are given.

If you do not agree with the notice, you will need to respond by writing a letter explaining why you disagree. Within your letter, include any information and documents that support your claim. Mail your reply to the address shown in the upper left-hand corner with the bottom tear-off portion of the notice. Keep in mind, it can take up to 30 days to get a response back from the agency.

In the event that you owe money, always pay as much as you can right away. Even if you can’t pay the full amount, it’s better to send in some money than none at all. Doing so will reduce the extra penalties and fees you may accrue from paying late.

7. Keep a copy.

It’s in your best interest to keep copies of any notices you receive from the IRS with your other tax records. It may be a small chance you have to refer back to it, but it’s better to have a concrete paper trail of the occurrence than nothing at all.

8. All notices come by snail mail.

The IRS always sends letters and notices by mail. They will not contact you by email or social media to ask for personal or financial information. If you are ever contacted by someone via phone, email or social media who claim they are the IRS, immediately discontinue the conversation and call the IRS directly to ask if they are trying to reach you.

Suspicious letters

Even though the IRS only communicates via paper letters, that doesn’t mean you couldn’t wind up receiving a fake notice. If any letter you receive seems suspicious, always contact the IRS to check its validity before you do anything else.

You can report fraudulent letters by visiting the IRS’ Report Phishing page or calling 800-829-1040.

Tax Information for Michigan Students

Listed below is some useful Tax Information for Michigan Students:

American Opportunity Credit

  • Maximum Credit: Up to $2,500 per eligible student annually
  • Limit on modified adjusted gross income: $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er)
  • Refundable or nonrefundable: 40 percent of credit may be refundable; the rest is nonrefundable
  • Number of years of postsecondary education: Available only for the first four years of postsecondary education
  • Number of tax years credit available: Available only for four tax years per eligible student, including any year(s) Hope credit was claimed
  • Type of degree required: Undergraduate or graduate degree
  • Number of courses: Student must be enrolled at least half time for at least one academic period that begins during the year
  • Felony drug conviction: No felony drug convictions on student’s records
  • Qualified expenses: Tuition and fees required for enrollment; course-related books, supplies, and equipment do not need to be purchased from the institution in order to qualify

Lifetime Learning Credit

  • Maximum Credit: Up to $2,000 credit per return
  • Limit on modified adjusted gross income: $160,000 if married jointly; $80,000 if single, head of household, or qualifying widow(er)
  • Refundable or nonrefundable: Nonrefundable—credit limited to the amount of tax you must pay on your taxable income
  • Number of years of post-secondary education: Available for all years of post-secondary education and for courses to acquire or improve job skills
  • Number of tax years credit available: Available for an unlimited number of years
  • Type of degree required: Undergraduate or graduate degree or non-degree courses to acquire or improve job skills
  • Felony drug conviction: Felony drug convictions are permitted
  • Qualified expenses: Tuition and fees required for enrollment, including amounts required to be paid to the institution for course-related books, supplies, and equipment

Student Loan Interest Deduction

  • Maximum benefit: You can reduce your income subject to tax by up to $2,500
  • Loan qualifications: Your student loan must have been taken out solely to pay qualified education expenses and cannot be from a related person or made under a qualified employer plan.
  • Student Qualifications: The student must be a taxpayer, taxpayer’s spouse, or taxpayer’s dependent and enrolled at least half-time in a degree program.
  • Time limit on deduction: You can deduct interest paid during the remaining period of your student loan.
  • Limit on modified adjusted gross income: $175,000 if married filing a joint return; $85,000 if single, head of household, or qualifying widow(er)

Coverdell Education Savings Account

A Coverdell ESA is set up to pay the qualified education expenses of a designated beneficiary.

Where can it be established?

It can be opened in the United States at any bank or other IRS-approved entity that covers Coverdell ESAs.

Who can have a Coverdell ESA?

Any beneficiary who is under the age 18 or is a special needs beneficiary.

Who can contribute to this ESA?

Generally, any individual (including a beneficiary) whose modified adjusted gross income for the year is less than the IRS limits.

Are distributions tax free?

Yes, if the distributions are not more than the beneficiary’s adjusted qualified education expenses for the year.

Education Savings Bonds

You may be able to cash in qualified US savings bonds without having to include in your income some or all of the interest earned on the bonds, if you meet the following conditions:

  • you pay qualified education expenses for yourself, your spouse, or a dependent for whom you claim an exemption on your return;
  • your modified adjusted gross income is less than the IRS limits; and
  • your filing status is not married filing separately.

Scholarships and Fellowships

A scholarship is generally an amount paid or allowed to, or for the benefit of, a student at an educational institution to aid in the pursuit of studies. The student may be either an undergraduate or a graduate.

A fellowship is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research.

Scholarships and Fellowships are tax free only if

  • the student is a candidate for a degree at an eligible educational institution; and
  • the aid is used to pay for qualified education expenses:
    • tuition and fees required to enroll or attend an eligible educational institution, or
    • course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Expenses don’t include room and board, travel, research, clerical help, or equipment and other expenses that are not required for enrollment or attendance.

Qualified Tuition Program (QTP)

  • Qualified tuition programs are also called “529 plans.”
  • States may establish and maintain programs that allow you to either prepay or contribute to an account for paying a student’s qualified education expenses at a postsecondary institution. Eligible educational institutions may establish and maintain programs that allow you to prepay a student’s qualified education expenses. If you prepay tuition, the student will be entitled to a waiver or a payment of qualified education expenses. You cannot deduct either payments or contributions to a QTP. For information on a specific QTP, you will need to contact the state agency or eligible educational institution that established and maintains it.
  • The tax benefit of a QTP is that no tax is due on a distribution for a QTP unless the amount distributed is greater than qualified educational expenses.

Business Deduction for Work-Related Education

  • If you are an employee and can itemize deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses is greater than 2 percent of your adjusted gross income.
  • If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. This reduces the amount of your income subject to both tax and self-employment tax.
  • Your work-related education expenses may also qualify you for other tax benefits, such as the tuition and fees deduction and the American Opportunity and Lifetime Learning credits. You may qualify for these benefits even if you do not meet the requirements listed above.

Qualifying Work-Related Education

You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests:

  • The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.
  • The education maintains or improves skills needed in your present work.

However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it is

  • needed to meet the minimum educational requirements of your present trade or business, or
  • part of a program or study that will qualify you for a new trade or business.

If you have any questions please contact us today!

9 Tax Tips for Small Businesses in Michigan

May 26, 2020 – Sourced from Nationwide

Running a business is hard enough without adding the complexity of filing taxes each year. The key, experts say, is to work with your accountant throughout the year, not just when you prepare your tax return. Making financial decisions without consulting an accountant or financial advisor can put you at risk and cost you more money in the long run. Here at ATS Advisors, we strive to offer more than just tax solutions. We strive to offer solutions that will help mold and shape the financial wellbeing for all of our clients.

Here are 9 tax tips for small businesses in Michigan:

1. Hire the right accountant

Your accountant should offer to do more than just prepare financial statements and do your taxes. If that’s all they offer to do, then they aren’t the right accountant for a small business. Your accountant should work with you throughout the year to track income and spending, to make sure you don’t have a cash flow problem, and to monitor your gross and net profits. Work with your accountant from day one of opening your business, not just in March and April for tax season.

2. Claim all income that is reported to the IRS

The IRS gets a copy of the 1099-MISC forms you receive so they can match the income you’ve reported against what they know you’ve received. Make sure the income you report to the IRS matches the amount of income reported in the 1099s you received. Not doing so is a red flag for the IRS. Even if a client doesn’t send out a 1099, you still need to report that income. The same rules apply with state taxes.

3. Keep adequate records

Keeping thorough and accurate records throughout the year will ensure your tax return is correct. With inadequate record keeping, you could be leaving deductions on the table or, worse, you could be putting yourself at risk for an audit. Almost all CPA’s recommends every business invest in a basic version of an accounting software because it is user friendly, inexpensive, and helps you keep track of all your income and expenses.

4. Separate business from personal expenses

If the IRS audits your business and finds personal expenses mixed with business expenses, regardless of whether you reported business expenses correctly, the IRS could start looking at your personal accounts because of commingled money. Always get a separate bank account and credit card for your business and run only business expenses through those accounts.

5. Understand the difference between net and gross income

If your product costs more money to make than you charge for it, you will lose money regardless of how many units you sell. Small business owners often forget to take into account the difference between their net and gross income.

For instance, if it costs $100 to make your product and you sell it for $150, your gross income is $50. But, he says, after you deduct your expenses, your net income might drop to $10. It’s important to know what your gross and net profits are so you can be more profitable and grow your business. Numbers don’t lie!

6. Correctly classify your business

Failing to properly classify your business could result in overpaying taxes. Deciding whether to classify your company as either a C Corporation, S Corporation, Limited Liability Partnership, Limited Liability Company, Single Member LLC or Sole Proprietor will have a different effect on your taxes. It’s important that small businesses consult with an attorney and accountant to determine how their businesses should be classified.

7. Manage payroll

Most CPAs recommends hiring a company to assist with payroll – but be sure that the company is reputable. To save money, some business owners will hire a lesser-known payroll service, only to find out later the service wasn’t remitting payroll taxes for the company. If that happens, the business owners are on the hook for the payroll taxes. The IRS typically checks every quarter to see if payroll taxes have been paid.

8. Seek your accountant’s advice on your business plan

A good accountant gives you advice on how to grow your business. Seek their advice to determine how much to contribute to your retirement fund and whether you should take a bonus or delay it a year. Your accountant can tell you if buying a small space for your store or business – rather than renting – could save you money.

9. Take advantage of capitalization rules

If you acquire a tangible piece of property or equipment for your business, you may be able to take a significant deduction.

 

Those were our 9 Tax Tips for Small Businesses in Michigan! Hope you enjoyed.

If you have any questions regarding any of these tax tips, please reach out to ATS Advisors and talk with us today!

Small Businesses should file Payroll Taxes Electronically

IR-2022-103, 2022

WASHINGTON – The Internal Revenue Service today urged small businesses to take advantage of the accuracy, speed and convenience of filing their payroll tax returns and making tax payments electronically.

During National Small Business Week, May 1 to 7, the IRS is highlighting tax benefits and resources tied to the theme for this year’s celebration: “Building a Better America through Entrepreneurship.” Filing and paying taxes electronically helps entrepreneurs leave more time for what they really want to do—build their businesses.

What are payroll taxes?

Also known as employment taxes, payroll taxes include federal income tax withheld from employee wages, as well as both the employer and employee portions of Social Security and Medicare taxes. In addition, payroll taxes include the Federal Unemployment Tax, also known as FUTA, which most employers need to pay but is not withheld from employee wages.

In some cases, backup withholding applies to payments made to nonemployees, usually because the recipient failed to provide their correct Taxpayer Identification Number (TIN), to the business making the payments. A TIN can be either a social security number, employer identification number or individual taxpayer identification number. For more information about backup withholding see Tax Topic No. 307.

Why e-file?

All of the returns reporting these taxes can either be filed electronically or on paper. Though the number of payroll tax returns e-filed has grown steadily in recent years—more than doubling in the last decade alone, more than 40% of them are still filed on paper.

Paper filers are missing out on all the advantages of electronic filing. E-file saves time, and it’s secure and accurate. Plus, the IRS acknowledges receipt of an electronically filed return within 24 hours. That doesn’t happen with paper filing.

It’s much easier to make a mistake on paper. With electronic filing, any mistake is often discovered and fixed quickly. With paper filing, it may take weeks or even months to discover and correct a mistake.

How to e-file

Employers have two options: Do it themselves or have a tax pro do it for them. Those choosing to do it themselves will need to purchase IRS-approved software. Alternatively, the Authorized IRS e-file Providers Locator Service, an online database, can help any employer find a suitable tax professional.

For more information about both options, visit IRS.gov/employmentefile.

Pay taxes electronically

Though some employers, especially those with small payrolls, can choose to pay their taxes when they file their payroll tax returns, most need to deposit them regularly with the Treasury Department instead. Federal tax deposits must be made by electronic funds transfer (EFT).

The fastest and easiest way to do that is through the Electronic Federal Tax Payments System (EFTPS), a free service available from the Treasury Department. Payments can be made either online or by phone. Any business or individual can also use EFTPS to pay other federal taxes, including quarterly estimated taxes.

Enrollment is required. To enroll or for more information, visit EFTPS.gov or call 800-555-4477 or TDD: 800-733-4829.

More information about the tax rules that apply to employers can be found in Publication 15, (Circular E), Employer’s Tax Guide, available on IRS.gov.

 

Contact Us with any questions today!

3 reasons to choose ATS Advisors Public Accountants Plymouth MI

Tax Specialist Plymouth MI

ATS Advisors

ATS Advisors is not just another CPA firm. As your partner we understand your desire to save time and money. We work with you, not just for you, to find effective solutions for your needs whether they are tax, accounting, finance, business or personal.

We build and maintain long-lasting relationships. Nearly 100% of our business was built on referrals and we take great pride in this fact. Your financial well-being is of paramount importance to us and we take that responsibility very seriously.

Our philosophy is simple: we only work with clients we respect and believe have the tools, and drive, to succeed. You will never receive an unexpected bill for services. We discuss all our fees up front and do not have any hidden costs.

Here are 3 reasons to work with ATS Advisors Public Accountants, Plymouth MI:

1.) ATS offers a wide variety of business services such as New Business Formations, Mergers & Acquisitions, Payroll Services, etc. Check the full list of business services here.

2.) ATS offers a wide variety of individual services such as tax preparation, accounting services, estate & trust planning, and more. Check the full list of individual services here.

3.) ATS is a family owned and operated small business with an attention to detail unlike many other firms. ATS Advisors is here to serve you and all of your business & individual needs.

Contact us Today