Tax Should Be a 4-Letter Word!

For a lot of people, it certainly evokes several of those four-letter words, or phrases (ahem). It was a painful reminder from one of the news channels last night that the IRS is going to started accepting electronic returns the other day, January 11th to be exact. Isn’t that nice of them? Hmmm… I guess that’s for people who don’t work for an employer or those who work for employers very gifted at getting those W-2’s in the mail before January 31st!

While our taxes are due on April 15th (which will sneak up faster than you think), returns for S corporations are due on March 15th! Yikes! It’s more than likely that a lot of the little businesses we blog about are S corporations. If you’ve had self-employment income, i.e. money made outside of your established employer, on a regular basis, then you’re already aware of those nasty self-employment taxes too! I thought self-employment was supposed to be a good thing. Well, according to what I have been reading, S corporations don’t pay as much of that dreaded self-employment tax.

There’s one designed for us. It’s not cheap but it beats the alternative of seeking legal assistance! Besides, my experience with the State tax office is that they are always willing to help you if you are trying to follow the rules and do things correctly. They appreciate that!

I’ll talk more about taxes, I’m sure, as April 15th gets closer.

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4 responses so far ↓

  • 1 Garran // Jan 15, 2008 at 11:08 pm

    I have another problem with the early filing allowances. Due to the alternative minimum tax (AMT) provision recently extended, the IRS is currently in the process of updating their software which means early filers relying on a refund may find their checks delayed this time around.

  • 2 Evelyn // Jan 16, 2008 at 6:17 am

    Hi Garran! Where have you been? Thank you for leaving a comment so we know you’re there! Well, so I know you’re there — everybody else probably already knows. “I hear you” about the IRS delay. It’s unlike them but I guess everyone’s entitled to a corporate slow-down now and then. 🙂 They have other big issues slowing them down beyond the personal returns too. They’re also restructuring the way they handle the returns of some of the charitable world too. Taxes can be an ugly thing but a delay in a refund can be even uglier if you were counting on it!

  • 3 Jason Boom // Mar 11, 2008 at 12:42 pm

    I have an S corp in the state of Illinois. It will hopefully help me save money this year, as last year really hurt come tax time.

    I wonder if I can call in sick to the IRS…it worked at my job this morning. 😉

  • 4 Evelyn // Mar 11, 2008 at 1:07 pm

    Hi Jason! LOL! Hmmm… I wonder? My husband always says that they should be next to him sweating and working to earn their share of his money. 🙂

    You’ve got to keep me posted on how the S corporation thing works for you! Hooray, a guinea pig! 🙂

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