Correspondence From The IRS – Yikes!

Written by Richard A. Chapo

It’s a moment every person dreads. You pick uprepparttar mail and there is an envelope fromrepparttar 149652 IRS. It’s not a refund check. What do you do?

Don’t Panic

Each year,repparttar 149653 IRS sends out millions of “correspondence audits” to taxpayers to request payment of taxes, notify them of a change to their account or request additional information. These audits normally cover a very specific issue, often notifying you of additional small amounts of income for which you owe tax. Each letter and notice provides specific instructions explaining what you should do if action is necessary to satisfyrepparttar 149654 inquiry.

Most correspondence can be handled without calling or visitingrepparttar 149655 IRS. You simply followrepparttar 149656 instructions inrepparttar 149657 letter andrepparttar 149658 matter is put to rest. Alternatively, you can contactrepparttar 149659 IRS to contestrepparttar 149660 matter. Simply callrepparttar 149661 telephone number indicated onrepparttar 149662 letter or write an explanation as to why you disagree. Make sure to include copies of any supporting documentation you want considered byrepparttar 149663 IRS. Typically, it will takerepparttar 149664 IRS between one and two months to respond. Duringrepparttar 149665 first quarter ofrepparttar 149666 year, it can take two to three months.

Sometimes,repparttar 149667 IRS sends a second letter or notice requesting additional information or providing additional information to you. Be sure to keep copies of any correspondence with your records. The IRS has been known to lose track of actions involving a taxpayer’s account.

Employment Taxes – What Are They?

Written by Richard A. Chapo

If you have employees, you are responsible for paying a variety of taxes atrepparttar federal, state, and local levels. You must also withhold certain taxes fromrepparttar 149651 paychecks of your employees. So, what are employment taxes?

Employment taxes includerepparttar 149652 following.

1. Federal income tax withholding

2. Social Security and Medicare taxes

3. Federal unemployment tax (FUTA).

Federal Income Taxes/Social Security and Medicare Taxes

You generally must withhold federal income tax from wages paid to an employee. Form W-4 is used to determinerepparttar 149653 specific amount, although most payroll services or your accountant will do this for you.

Social security and Medicare taxes pay for benefits that workers and families receive underrepparttar 149654 Federal Insurance Contributions Act (FICA). Social security tax pays for benefits forrepparttar 149655 retired, survivors, and disability insurance distribution provisions of FICA. Medicare tax pays for benefits underrepparttar 149656 medical care provisions of FICA. As an employer, you must withhold a percentage of these taxes from employee and matchrepparttar 149657 withholding amount.

Cont'd on page 2 ==> © 2005
Terms of Use