Bank finance articles and tips

The IRS has released details about the registered tax return preparer exam. Availability of online scheduling for the exam is expected soon. Testing will occur at centers provided by Prometric, a third party administrator of professional examinations.

Tax preparers are required to pass the competency exam in order to use the designation of Registered Tax Return Preparer. The IRS goal is assurance of basic preparer competency in meeting ethical responsibilities for tax reporting. According to the IRS, the RTRP exam 2011 relies upon 2010 tax forms and publications....

Do you own a small business and pay workers to perform services for you? If so, are you wondering whether to give them a W-2 or a 1099-MISC? Read on to find out.

The short answer to this question is simple: It matters a lot. And there's a lot at stake here, so do not take this issue lightly.

The question of what tax reporting form to give your workers is just the tip of the iceberg of a huge issue known as "employee vs. independent contractor." If your workers are employees, they should receive a Form W-2. If they are independent contractors, they should receive a Form 1099-MISC.

Why does it matter? It matters because if you've been paying your workers as employees, you should have been issuing paychecks and withholding income taxes (federal and state) as well as payroll taxes (Social Security and Medicare tax) from those paychecks. You should have also been paying these taxes to the appropriate government agencies over the course of the year. Depending on the amount of withholdings, you can be required to make payments weekly, monthly or quarterly. In addition, if you have employees you should also be calculating and paying federal and state unemployment tax, which can also be due every quarter.

Do you own a small business and are wondering when to file your federal income tax returns? This article will give you the information you need to keep the IRS happy.

The due dates for federal business tax returns depend on the type of business entity. Here are the possibilities, assuming that your business has a the normal calendar year-end of December 31:

1. Sole Proprietorships. If you are an unincorporated business, the IRS classifies you as a sole proprietor. This means you are not a corporation or a partnership or limited liability company treated as a corporation or a partnership. Sole proprietorships file their business tax return as part of their personal income tax return on Schedule C. Other forms may also be required, such as Schedule SE (if you have profit of at least $400), Form 4562 (if you purchase business assets such as computers or other equipment), and Form 8829 (if you take the home office deduction).

Have you started a small business and need to know when to file your tax returns? Perhaps you've heard about filing quarterly returns and are wondering if that requirement applies to you? Read on to get answers to these important questions.

Annual Income Tax Returns. All small businesses must file a return annually. Generally speaking, if your business has a calendar year-end, you must file one of the following business income tax forms by the due date listed below:

If you own an S Corporation, you must file Form 1120S every year to report income and expenses to the IRS. Part of Form 1120S is a balance sheet. Read on to find out whether you have to complete this report in order for the tax return to be complete.

First, let's review the purpose of a balance sheet - it is a financial report that lists the asset, liability and shareholder's equity accounts. It is found on page 4 of Form 1120S and is known as Schedule L.

Do you own an S Corporation and are wondering if you must make federal quarterly estimated tax payments? Read on to find out.

Generally speaking, an S Corporation usually does not incur any federal income tax. This is because it is what is called a "pass-through entity" for tax purposes. In other words, even though corporate profit does get reported on the federal corporate tax return, this return (Form 1120S) is really for information purposes only. Rather than have the S Corporation pay the income tax on its profits, those profits are passed on to the shareholders via a form called Schedule K-1. The shareholders must then report the corporate profits from Schedule K-1 on their personal tax returns, and that's where any income tax is reported and paid.