Colorado Vendor’s Fee Reinstated at 2.22%

The Colorado state Vendor’s Fee also known as the sales tax Service Fee has been restored at 2.22%. The fee may be claimed on timely filed and paid Colorado sales tax returns submitted on or after July 1, 2011 beginning with sales tax returns for June 2011 and 2nd quarter 2011 due on July 20, 2011.…

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Restaurants and Bars: IRS Audit Technique Guide an Introduction

Regardless of the type of restaurant one fact that is consistent when it comes to IRS audits is that all restaurants have numerous sales transactions with small(er) dollar amounts, taking place in a short time frame, such as during lunch or dinner. Many restaurants, especially smaller or closely held ones, are cash intensive and employees…

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Partial Payment Installment Agreements with the IRS – some requirements

According to the Internal Revenue Manual Chapter 5.14.2.1.1 a full Collection Information Statement is required for all Partial Payment Installment Agreements (PPIA’s). IRS Forms 433A or 433B must be completed to determine the taxpayer’s ability to pay Conditional expenses are not allowed for PPIAs. Only necessary expenses are permitted. For in-business trust fund accounts (employment…

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How do you request a CDP or equivalent hearing with the Offi ce of Appeals?

Complete IRS Form 12153, Request for a Collection Due Process or Equivalent Hearing, or other written request with the same information and send it to the address shown on your lien or levy notice. To request an equivalent hearing, you must check the Equivalent Hearing box on line 6 of Form 12153 or if you don’t use Form 12513 write that…

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Colorado Sales Tax on Vacation Rental

If you rent a house or condominium to someone in Colorado for less than 30 days sales tax is owed on that rental. Not only that but in order to collect sales tax you must have a Colorado sales tax license. In addition to a license fee, Colorado sales tax license holders are required to pay…

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New IRS Notices being sent in Error for Taxpayers Filing Self Employment Tax

The IRS has been experiencing a system error that occurs on individual tax returns that pay self-employment taxes. The system has been issuing IRS notices to some individual taxpayers in situations including: Taxpayers who have more than one Schedule C Taxpayers who have a Schedule C and S corporation K-1 Taxpayers who have an S…

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You May Have to Pay Estimated Taxes if …..

According to IRS Publication 505 you may have to pay estimated taxes if you are self-employed and have income other than your salary or you receive income that is not subject to withholding, such as: Self-employed income Rent Interest Dividends Alimony Gains from sales of assets Prizes and awards You also may have to pay estimated…

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Severance Payments NOT Subject to FICA Tax according to court, but ….

In February 2010, a federal district court in U.S. v. Quality Stores, Inc., (DC MI 2/23/2010) 105 AFTR 2d 2010-1110, ruled that severance payments made to terminated employees by a company going out of business were not “wages” subject to FICA. The Court said that “…where severance payments are intended to serve the same purpose as social security benefits, i.e., support for workers in…

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