How to file your personal taxes

Do you stress or worry about April 15th every year? Does filing your taxes keep you up at night? Are you dreading paying for something that you don’t enjoy? Well, it’s about time you got a good night’s rest. Anyone can file their own taxes, and they can do it for free.

Do you make $60,000 or less in a year? You and 70% of Americans qualify to file your taxes for free through the IRS. The IRS Free File provides free tax preparation and e-filling. IRS Free File is a partnership between the IRS and fourteen other tax software suppliers such as TurboTax, H&R Block, and Jackson Hewitt.

Before you file your federal taxes

Before you start filing, there are a few forms you need to get started. You need a copy of the tax return from the previous year; social security numbers for yourself, your spouse, and children; and proof of identity. Proof of ID includes the AGI number on your previous year’s tax return, your personal ID number, or by creating a new five-digit PIN number.

One you have all your personal information collected, gather all receipts and documents including:

• W-2’s
• All varieties of Form 1099, including forms from the Affordable Care Act
• Form 1095A, an health Insurance Marketplace Statement
• Form 8962, a Premium Tax Credit
• Form 8965, a Health Coverage Exemption
• If you have any unemployment compensations, rental incomes, partnerships, trusts, S corporations, or Social Security benefit’s make sure to have the paperwork on them as well.

State Tax can be free too

After filing your federal taxes, go to your state’s department of revenue website to review free filing options. Make sure you follow the link on the state’s website to guarantee a free file or you might find you’ll be paying at the end.

At IRS.gov, follow this link to Free Filing. You’ll use their free tax prep software that that will make it easier for you to file on your own.

If you get stuck or have any questions, Poston, Denny, & Killpack LLC serves all of eastern Idaho and is ready to help.

Turn to an Idaho Falls accounting firm you can trust for your future tax services!

Even as you watch April disappear in the rearview mirror, it’s time to start thinking of the future! Here at Poston, Denney, & Killpack, PLLC in Idaho Falls, we know that it is never a bad idea for business owners, executives, and independent professionals to seek the services of an accounting firm.

We provide our clients with a full range of assistance, including:

Individuals:

• Personal Finance Planning – we provide you with one-on-one guidance to help you efficiently manage your finances.
• Estate Planning – We offer recommendations and tools to make planning simple and worry-free.
• Elder Care – With this service you get someone else who is looking out for the best interest of your aging loved one.

Business:

• Small Business Accounting
• Payroll
• Outsourced CFO Service
• Audits, Reviews, Compilations
• Cash Flow Management
• Banking Financing
• Business Valuation
• Strategic Business Planning
• Succession Planning
• New Business Formation
• Internal Controls

Tax:

• Preparation
• Planning
• IRS and State Issues

With the wide-ranging list of support we offer, our firm of knowledgeable and helpful employees can help your safeguard your finances.

Get to know the people behind your Idaho Falls personal, business, and tax services.

We are committed to providing you with exceptional advice and assistance for your personal and business accounting needs. To maintain a level of service that we know you will be satisfied with, we make a point of hiring exemplary employees. Our newest additions are Raigen Powell and Tyler Lythgoe, our former interns, who have proven their abilities and now work for us full time. We also were recently joined by the wonderful Heather Pincock, our new receptionist.

Trust the company that works hard for you!

We know that you work hard for your money and we believe you deserve a firm that will work just as hard to protect it! Here at Poston, Denney, and Killpack, PLLC we play hard, enjoying a good game of golf or summer work party, but when it comes to our clients, we work even harder!

U.S. Tax History Review: The Boston Tea Party

We've all heard of the Boston Tea Party and at least have some idea behind the event itself and the eventual outcome. And because we have just passed 2015's tax season, we thought it'd be cool to read about something else other than spreadsheets and 1099's.

The Boston Tea Party was the result of a long series of events involving the French, the British, and the American colonists. The British crown decided that the American colonists were responsible for helping to pay off war debts that were incurred during the French and Indian War.

Taxes were levied on almost every printed good the colonists produced, a result of the infamous Stamp Act. The following year, the British crown instituted the Townshend Duties or Revenue Acts. These taxed almost every transaction of goods and services to a point that even the most successful of businesses suffered greatly.

The American colonists were beginning to resent their overseas lords and began to dissent by way of refusing to use of purchase any of the taxed products. The Townshend Duties or Revenue Acts was eventually repealed lest a small 3 penny fee on tea.

However, it wan not this 3 penny fee that caused the famous party aboard the tea and tea shipping industry.

The British had a hand in the East India Company, a major tea exporter, and passed what came to be know as the Tea Act which effectively monopolized the East India Company. This basically cut out all of the middle men in the regular tea trade. This hurt the local economy and is was what ultimately caused the Boston Tea Party to unfold.

The American colonists began a campaign of harassment and sabotage against East India Company whenever they could. They burned East India Company ships in port and blockaded others to force them to unload their cargo in accordance with British law. It was during one of these blockading instances in Boston harbor an event unfolded that forever changed the course of American history.

A man by the name of Samuel Adams and his crew of patriots donned native American costumes and war paint and descended upon the harbor. Their target? An East India Company tea shipping vessel.

And the rest, as they say, is history.

Keep The IRS Out Of Your Life By Avoiding A Tax Audit. If You Live In Idaho Falls, We Can Help!

The proverbial IRS taxman is the last person you want darkening your doorway. The IRS has reported that 1 in 200 taxpayers has a chance of being audited every year. Keep yourself or your business out of those statistics-here are some tips!

Ways You Can Avoid A Tax Audit

Luckily, there are ways you can reduce your chances of being audited. Here are a few to be aware of:

• Make sure you computations and figures are correct
• Keep receipts and get appraisals for all charitable contributions of $250 or more
• Fill out tax forms completely and carefully and leave nothing blank
• Keep copies of your returns for several years
• E-file if possible

Let’s discuss these a bit more. You want your numbers to be right. The IRS uses computers to cross check your returns with any other information that it has for you, from banks, employers, etc. So be sure you have accounted for everything and that your numbers match. Otherwise you could be flagged for an audit.

Charitable contributions can change from year to year, and if your tax return is noticeably different from last years, the IRS will want to know why. Save all of your contribution receipts. You should also include an explanation (in the form of canceled checks, receipts, etc).

Be sure to fill out tax forms completely and leave nothing blank. Don’t leave anything for the IRS to assume or wonder about. The computers will flag any discrepancies in math. You want to draw little or no attention to your return, so if it sails smoothly past the computers and the agents, that’s a good thing.

Be sure to keep copies of several years returns. The IRS can audit you from 3-7 years back for discrepancies. Be sure you are able to defend yourself by keeping your returns.

E-file if you can. The error rate for a paper return is 21% and the rate for e-filing is 0.5%. Less errors equal less flagging and attention from the IRS. The accountants and tax preparers at Poston, Denney & Killpack PLLC in Idaho Falls are familiar with these and other ways to avoid a tax audit. They can help you prepare your taxes, tax planning, and also helping you with any problems you may encounter with the IRS should you be audited. They are located In Idaho Falls and if you are trying to avoid or facing a tax audit, Poston, Denney & Killpack PLLC would love to help you maneuver through it! They are affordable, experienced and ready to help you this tax season avoid those IRS agents and their audits. In Idaho Falls call us at (208) 522-0886.

Common Tax Mistakes Small Business Can Make

Running your small business is rewarding in many ways but navigating all of the taxes for a small business can take the reward right out of it. There are too many things that can be forgotten, unknown, or mistaken- a wrong deduction here, a missed credit there, and suddenly that little mistake is drowning your business. Here are a few of these common tax mistakes small business can make, be sure they aren’t yours!

Tax Authorities You May Owe

Many small businesses have no idea how many authorities they should be paying taxes to. In addition to the federal and state income taxes, here are some other taxes you may owe:

• sales taxes
• property taxes
• payroll taxes
• local and municipality taxes
• excise taxes
• self-employment taxes

Take some time and educate yourself about which taxes you may need to pay. A good accounting firm can help you sort through who and what you may or may not owe! In Idaho Falls, Poston, Denney, & Killpack, PLLC will be glad to help you determine who these are, how to file, and if need be, how to pay them.

Ignoring Self Employment Taxes

Don’t assume you don’t have to pay this tax! If you net more than $400 from your business, most of that money will probably be subject to this tax. Penalties and interest can add up quick if you neglect this tax. Paying it quarterly will avoid a big payout at end of year tax filing.

Doing Your Own Payroll

You may think you are saving money by doing in-house payroll, but this can be a very costly common tax mistake. Not only is it time consuming and complicated, but it is also a common way to defraud employers through payroll checks and tax returns, not to mention filing mistakes and improper payments. To avoid penalties, just outsource this job.

Missed tax credits

Another common tax mistake is to miss tax credits. There are a lot out there, and since running your business will take up enough of your time, you don’t need to also be sifting through all of the current tax laws looking for these. Some you may be missing:

• Small business Healthcare tax credits
• Tipped employee payroll tax credit
• Domestic production activities deductions
• Tax credits for hiring disabled workers
• Returning Heroes tax credits for hiring veterans

These are just a few of many. Hiring an accounting firm is your best bet to help ferret out these credits, it’s their job to know!

These common tax mistakes can be fixed of course, by re-filing amended forms when you get an IRS notice, or by hiring your own oversight department, but those solutions are time consuming, and too costly or not feasible for most small businesses to do on their own. A better idea is to hire an accounting firm to do your taxes, correct mistakes, and keep them from happening again. Poston, Denney, & Killpack, PLLC can help you with all your small business tax concerns, and that peace of mind is it’s own reward.

Worrying about the headache of end of the year tax filing? Stop, because Poston, Denney, and Killpack, P.L.L.C. will guide you safely through treacherous paperwork!

If you have a small business, you may or may not realize that January 15th is a big day. It is the day that your quarterly estimated taxes are due. Not currently filing taxes quarterly, but wondering if you should? Here is some important information to know. Quarterly estimated taxes are for the self-employed or those will receive large windfalls.
When filing quarterly taxes, it is essential to keep a careful schedule! The important dates are:

• For income received January 1st through March 31st, your estimate is due April 15th.
• For income received April 1st through May 31st, your estimate is due June 15th.
• For income received June 1st through August 31st, your estimate is due September 15th.
• For income received September 1st through December 31st, you estimate is due January 15th.

When dealing with end of the year tax filing, it is important to separate fact from fiction!

We have compiled a list of major misconceptions to clear the air!

• For quarterly taxes, you can just pay one lump sum at the end of the year. False! You can and should pay the amount due in payments during the year.
• If you don’t make much, you don’t need to file. False! If you made or received payments, you likely need to file an information return with the IRS.
• If you miss a payment, you should just wait until the next payment. False! You should make the payment as soon as you can to reduce penalties.

Contact Poston, Denney, and Killpack, P.L.L. C. today and see the miracles we can work for you!

When dealing with end of the year tax filing, the most important thing is getting it done right. You don’t want to find yourself bogged down for the next year and beyond by penalties and interest that could be avoided. Save yourself the headache of mistakes and the ensuing confusion by contacting us today. We will get and keep you on the right track!

The Payroll Nightmare

Small business owners in Idaho Falls are finding it increasingly difficult and time-consuming to keep up with all the laws and statutes governing their company’s payroll. No one likes having to spend several hours every month just figuring out payroll. The average business owner spends 8 hours every month doing payroll. So for 12 full work days a year, business owners have to deal with payroll instead of running their business. Those are 12 days that can’t be used for generating more business, improving products or services, or helping customers. On top of the time consumption, there’s always the fear that there’s some new law that you don’t know about, or the general fear that you might do something wrong—and either mistake could result in large costs.

Beating the Nightmare

Of course, the most obvious solution to these concerns is to hire someone else to do it. You could increase your overhead and hire someone on to your team to do all the payroll tasks, or you could hire an accounting firm to do it for you. The latter is generally more affordable in Idaho Falls, and payroll services come with several advantages when they’re outsourced: it’s cost effective to have an accounting firm handle your payroll and the associated legal details, and it reduces the overhead of hiring a specialized employee. It saves you heaps of time that you can better spend running your company, and you can safely stop worrying about data entry or researching updates or new laws. Your tax filing becomes effortless when you let a professional do it. They can keep track of all the federal, state, and local payroll tax laws and apply them for you. These laws change frequently, and keeping up with them alone can be a daunting task. An accounting firm will generate a wide variety of reports like union reports, certified payroll, workers’ compensation, etc. and provide them for a nominal fee.

One Size Doesn’t Fit All

A good accounting firm will provide several options for varying levels of their services. Usually these include anything from comprehensive services, where you get pretty much every payroll service possible, to minimal services where only checks, taxes, and reports are generated for you to print yourself. These are the services you should look for in a CPA in Idaho Falls. Payroll services should be flexible and allow for customization, because no two businesses are the same.