0
Tax Audits
Tax audit refers to the examination and verification of returns and other relevant tax documents submitted by a legal entity or an individual to the state’s tax agency. The audit is usually conducted by a certified public accountant.
1,102 Questions
The HSN is a multipurpose international product terminology acknowledged by the World Customs Organization. The purpose of using the HSN codes is to ensure that GST billing practices are in accord with international standards of product nomenclature.
Also every business with the coming of GST in India is required to declare a list of goods they are dealing in. The declaration is required along with the HSN code of such commodity and one HSN code has only one GST rate. The system will automatically select pick rate as per GST rate finder based on these HSN codes.
What is the difference between an accounting review and an audit?
Publicly traded companies are required to have audits. Reviews are similar to audits, but are less comprehensive in scope. Private companies often opt for reviews instead of audits because they are less costly. Private companies may also request an accounting review in order to meet the requirements of a lender or private investor.
Possibly. The IRS has been known to take the position in delinquent tax collection matters that a bookkeeper in this scenario can be held a "responsible person" for payment of employment taxes. If the employment taxes are not paid over to the IRS then the IRS looks to collect the so-called Trust Fund portion of the employment taxes (plus interest and penalties) from anyone they deem a "responsible person". The company bookkeeper is high on the IRS target list of people they try to pin the blame on.
Absolutly, a job in accounting involves mostly all math, one job in accounting is a cpa, they read bills, write about opions and their solutions to bills, and the bills involveall math, so a job in accounting such as cpa, requires about at least higher than 50% math, I say it requires about 65% math, 30% finance, and 5% law/ just a tiny amount of law classes only used in about 5% of the job.
How do you remove penalties and interest on taxes owed?
In order to remove penalties and interest on taxes owed you must do two things.
First, for penalty abatement you must submit a request to the IRS requesting that the penalties be abated due to mitigating circumstances beyond your control which prevented you from paying your tax in full, on time. Plus you have to be able to prove your explanation. IRS is very unforgiving in these matters and it takes a good story to get them to respond.
Second, for interest abatement you must submit a request to the IRS proving that the amount of interest charged against you has been a result of their own mistake in handling your account. IRS is very reluctant to ever admit that they make mistakes, so this has to be clear, convincing proof beyond a doubt.
Can tax exempt income qualify as support?
Need more info to answer properly, but if I understand what you're asking: Income that is not subject to income taxes (tax exempt investments, inheritance income from an estate, life insurance proceeds, etc) can certainly be considered income to support oneself - (IE If someone asks how you support yourself when you have no job... you may have income sources that are tax exempt that provide you with enough income to live a very comfortable lifestyle.) If you're asking for purposes of support as in child support or spousal support - then I believe that is negotiable prior to settlement of the divorce / child support case. If you're asking if tax exempt income qualifies as income for a dependecy exeption, then the answer is yes. So long as the income is enough to cover 50% of the expenses to maintain the household / provide for the child, etc.
Is current use tax tax deductible?
Well yes and no. Under a recent change in the tax laws, sales or use taxes are deductible under certain rules IF you elect to, and beneficial if they are more than the State income taxes. This equalizes the deductible State taxes for those living places that have no (or small) income taxes.
Revenues = Sales
Revenue is the amount of money charged for the usual product or services sold by a business.
Form 1065, is an IRS form for filing returns for Partnership Firms in the United States, where the partners/owners pay taxes on the firm's incomes. Thus avoiding the double taxation system on C Corporations (Listed Companies like Microsoft and Google)
Do you pay tax on your first year of self employment?
Yes, you will have to pay taxes on your self employment the first year you are in business, provided of course that you make a net profit under the method of accounting that you choose to use.
If you have a net profit, you will have to at least pay the self-employment (social security) tax due. You may also have to pay income tax on the net profit. This will depend on the amount of taxable income that have, less any allowable credits.
You would be well advised to tally up your income and expenses now to see where you stand so far this year on your tax liability for 2008.
What is the tax on a 17000 cash deposit?
Income of $17,000 is added to your other sources of income on your tax return. On its own $17,000 is in the 15 percent tax bracket. But that's without subtracting any adjustments, exemptions, or deductions that you might be eligible to claim.
Form 8300 is Report of Cash Payments Over $10,000 Received in a Trade or Business. You're required to file Form 8300 if you received a cash payment of over $10,000 as part of your trade or business.
Form 4789 is Currency Transaction Report. The financial institution is required to file Form 4789 to report any transaction (deposit, withdrawal, transfer, etc.) in currency of more than $10,000.
How much does a partner at big four accounting firm earn?
Roughly $400,000 a year, plus bonuses. It takes about 15 years to become a partner though, and apparently it's INCREDIBLY stressful (and there's some politics and corruption involved).
The pay is NICE though
hi there
to my idea assesable income is every single income that come from the main or normal activity of the company! Just say a computer company, the assesable income are the sell of the computer, spare part as well as software.
Good luck
Dear Taxpayer, I'll try to answer your question based on what I understand it to be although the phrasing is somewhat vague. If you have a bank account that pays interest, (as many banks have) then you have interest income that will need to be reported on your tax return whether you are filing for the current year or for past years. A bank reports interest income on form 1099-INT, one copy goes to you and the other to the IRS. If you don't have a copy of the 1099-INT for the year in question then you can contact the bank and request one for your records. If the bank is either closed or non-responsive, I'd suggest that you contact the IRS and request a copy of your wage and income transcript for that year. Within 30 days you'll receive a copy of your income information for the year in question. If your account is not an interest-bearing account then you don't pay "additional" taxes on the monies. If you received these funds from your employment, then it gets reported to the IRS on your W2, if its from Self-Employment, then it gets reported on a 1099 or from self-reporting. Regardless of whether you keep the money on a bank account or under your mattress you pay taxes when you get paid, if you then put the money on the bank, you'd only be taxed on the interest received. Should you have additional questions make sure to consult a tax professional. Good luck. www.irs101.blogspot.com
How do you prepare profit and loss statement?
How to Prepare a Profit & Loss StatementA profit and loss statement measures a company's sales and expenses during a specified period of time. The purpose of a profit and loss statement is to total all sources of revenue and subtract all expenses related to the revenue. It shows a company's financial progress during the time period being examined.
Instructions
Things You'll Need:· Net sales info
· Cost of goods sold info
· Selling and administrative expenses info
· Other income and other expense info
1. Step 1
Enter your company's name in the header of the statement. In addition, add the period the profit and loss statement will reflect.
2. Step 2
Enter data for net sales. The company's net sales are the total sales during the time period being analyzed minus any allowances for returns and trade discounts. The amount allowed for returns will vary depending on what type of business you are running. Calculate the cost of goods sold. The company's cost of goods sold is also called the cost of sales. If you are a retailer or a wholesaler, it is the total price paid for the products sold during the accounting period. To calculate the cost of goods sold you will use the following calculation below and record the data:Beginning inventory + Inventory purchased during the period− Inventory on hand at the end of the period________________________________________ Inventory used for product the time period
3. Step 3
Fill in the cost of sales for your company. Once net sales and cost of goods sold are entered on the P & L statement, it is possible to compute the gross margin for the accounting period. Gross margin is also referred to as gross profit. Net Sales − Cost of Goods Sold = Gross Margin
4. Step 4
Calculate the gross margin using selling and administrative expenses. Selling expenses are expenses incurred directly and indirectly in making sales. They are the expenses of order taking and order fulfilling. General and administrative expenses are operating expenses not directly associated with the sale of goods. They are also called "overhead" expenses.
5. Step 5
Enter total selling, administrative, and general expenses.
6. Step 6
Enter the net operating profit. To calculate it, use the following formula: Net Operating profit + (other Income − other expenses) = net profit before income taxes
7. Step 7
Enter any other income or other expense for your business on the worksheet and calculate the net profit before income taxes. Net profit is calculated by subtracting what you estimate is owed for state and federal income taxes from net profit before income taxes. Net Profit before income taxes − income taxes = net profit
8. Step 8
Record net profit after income tax.Net profit before taxes-provision for income tax= net profit after income tax
What is the difference between allowance and perquisites?
Allowance are being mentioned in section 10 wheras perquisites in section 17(2) of Income Tax Act, 1961.
How long to keep tax records for business?
You should keep your business records for a minimum of three years for federal income tax purposes. Records retention for state tax agencies varies, but three years would also be a minimum for these tax authorities as well.
Note that your records having to do with any depreciable capital assets should be kept until at least three years after the assets are disposed of.
Also, any records having to do with tax carryover items should be kept for at three years after the carryover is used up.
How long to keep deceased parents papers such as tax returns?
Some papers are more or less permanent, such as titles to property. Tax returns: I'd say seven years. Papers that are duplicated in the public records: it doesn't really matter, because you can always obtain copies from the public records.
Deferred tax is an accounting concept, meaning a future tax liability or asset, resulting from temporary differences between book (accounting) value of assets and liabilities and their tax value, or timing differences between the recognition of gains and losses in financial statements and their recognition in a tax computation
Badges of trade are the circumstances in which a trade can take place. This is important in accounting because of the differences in taxation with non-trade transactions.
How long does a bank keep checking savings records?
A bank is required to keep checking and savings records at least 5 years. This applies to personal and business accounts.
Pay As You Earn Method used by most people who have a single job to pay personal income tax liability each time they are actually paid.
