Tag Archives: W-2

1099 Mistakes to Avoid

mistake on taxesEveryone knows that filing late or not at all will result in penalties, but not everyone knows that errors are costly as well.  Mistakes are often made on 1099 forms and each particular error can rack up the penalties costing your company more money.

1099 Mistake #1: Sending them too soon:  Most people assume that sending your 1099’s ahead of time is a good thing, but this is far from the truth.  Sending your 1099 to the IRS before the due date can cause massive issues for your employees as well as yourself.  Should there need to be corrections made, the “see corrected” box is often missed by the IRS and they count each 1099 separately and will send tax due notices to your employees.

1099 Mistake #2: Errors in amounts – It’s extremely easy when running through a stack of 1099s to skip a zero or add one.  In this instance it looks as though your employees made more or less money than they actually did, and they run the chance of incurring extra expenses if the error is not recognized.

1099 Mistake #3: Missing an employee – When you have hundreds of employees it’s easy to make mistakes.  Sometimes employers miss an employee, thus landing the employee in hot water with the IRS and cause a massive paperwork snafu for you as well.

The best way to avoid these common pitfalls is to have a professional service prepare your forms for you.  At Online File Taxes, we pride ourselves on diligent work at a respectable cost.  Check out our website for more information.

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3 Tips to Avoid a Small Business Audit

small business auditAudit is the watch word during tax season and it often strikes fear into the hearts of small business owners.  Sometimes an audit is inevitable, but there are some tips and tricks to avoid it.

  1. Just in Case, Triple Check: The first step may sound obvious, but check, check, and recheck your figures.  A simple mistake can send up warning signs in the IRS and flag you for an audit.  If it helps, have someone else look over all your forms to ensure you’ve filled in all the required information.
  2. The Truth and Nothing but the Truth: once again, this sounds like common sense but that amount of people that overestimate deductions or expenses.  Too many deductions or unrealistic deductions will turn heads toward your returns and make an audit a possibility.  If your deductions are factual but unusual, provide accurate documentation and/or explanations.
  3. Pay Attention to Directions:  When filing forms, read all directions carefully.  A surprising amount of mistakes are made simply by missing a step in the directions.  Always read through things before starting to fill the forms in.

In any event, it is widely agreed that both e-filing and having a professional prepare your forms is the best trick in avoiding an audit.  Contact us to help with your tax preparations!

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Online File Taxes: As Easy As 1-2-3

Forget complicated processes to file your tax forms, we’ve got the solution.  Our sign up process is as easy as 1-2-3, as we’ve made an effort to keep it as simple as possible.  Why complicate things that don’t need to be complicated?

The first step in our sign up process is just that; sign up!  Fill in your email address, choose a password, and then confirm your password.  We told you this was going to be easy!

file 1099 online

The second step is to fill in some basic information.  We want to know who you are, where you live, and what your business is/does.  This helps simplify both our work and yours.  If you have a coupon code this is your chance to enter it.  After filling in your information, simply click the next button and you will be taken to our third and final step.

file 1099 online

Our third and final step is by far the easiest step of all.  All you have to do to complete your account sign up is to confirm your information.  Here you will be given the option to say yes, and start filing or say no, and revise your information.  Once you select the proper option, you’re free to start entering your forms.

To take part in our services and complete our super easy sign up, check out our website!

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3 Things You May Not Know About the IRS

IRS and small businessThe IRS is one of those government sectors surrounding by mystery and intrigue.  We picture stern looking men in dark suits, always with the looming atmosphere of threat surrounding them.  As taxpayers, we’ve learned to dread audits with the same fear with which we regard natural disasters.  Fortunately, the air of danger and fear surrounding these IRS agents is often exaggerated.

  1. When filing there ARE tricks to avoid an audit:  First of all, don’t round your numbers because the IRS views this as an estimation.  Secondly, failure to sign a form can flag it as suspicious.  Finally, explain large deductions.  Essentially, any form submission that sticks out makes you a potential victim for auditing.
  2. Timing is everything: As a small business, timing when your employees receive bonuses and overtime can affect your bottom line.  With bonus payments, often these payments coincide with payment of payroll taxes and the two must meet up.  This mistake can cause penalty action to be taken.  In the event of overtime, this must be tracked on a weekly basis regardless of your payroll schedule.
  3. Be careful to keep your payroll expenses separate from your operating expenses:  If the IRS thinks you’re dipping into your payroll funds to pay general expenses for your business, you could be looking at quite severe penalties.  Be sure to keep accurate records, and don’t co-mingle finances.

Often the IRS isn’t the unfriendly, frightening figures we fear them to be.  If you’re diligent with record keeping, and are honest in your returns, direct contact with IRS can mostly be avoided.

For fast, secure, and mistake-free filing, be sure to check out our website!

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Challenges Facing CPA’s

 CPAsBeing a CPA presents a unique set of challenges, much like other professions.  During certain times of the year, the duties of a CPA increase exponentially.  Tax time is so often stressful for clients, and more often than not, a great deal of that stress is filtered down to the CPA.

Time is against most of us, there’s no denying it.  There never seems to be enough hours in the day to get everything done that we need to accomplish.  During tax season, if you’re a CPA, chances are you need almost double the amount of hours to get everything finished.  Add in a reliance on technology and staff members, and things can start to get dicey in a hurry.  Think about it this way, if one member of your office were to slow down, miss a day, or a computer were to break down, what effect would that have on your workflow?

On top of dealing with increasing workload, potential technology failures, and unreliable staff CPAs still have clients to deal with.  Some clients expect their CPA to have all the answers, and have those answers immediately.  Clients want more and more, but want to pay less and less.  CPA firms, in turn, have no choice but to lower their prices to compete with other services and then have to hire less staff.  With less staff, workload increases, and a CPA ends up bogged down in their duties.

At Online Files Taxes, we specialize in helping CPAs find enjoyment in their job again.  We have a streamlined system that allows you to easily and painlessly e-file hundreds of forms at a time.  We cut out the tedious steps of filing, mailing, etc. and allow you to get back to focusing on your clients.

Check out our website for more information about easing your workload!

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The Best LinkedIn Groups for Small Business Tax Professionals

LinkedIn Groups for CPASProfessionals are always looking for ways to expand their reach and communicate effectively with their target audience.  As tax professionals, this is no different.  Perhaps you’ve looked into potential ways to communicate via the internet with fellow tax professionals and leads.  One way you may go about reaching a broader audience is by joining specific groups on LinkedIn.  We’d like to showcase our top five LinkedIn Groups:

  1. CPA & Professional Business Group – This is a closed group, which means you must request membership.  Once approved, the doors are opened to a group sponsored by the American Institute of Certified Public Accountants.  This group weighs in at just over 41,000 members and has been active on LinkedIn since 2008.
  2. Tax Professionals – Luckily, for those looking for immediate access, this is an open group.  The Tax Professionals group caters not only to tax professionals but business people.  The goal of the group is to provide connection to the two separate groups.  Active since 2007, Tax Professionals has in excess of 60,000 members.
  3. CPA Tech Connect – This private group has been on LinkedIn since 2011 and has close to 3500 members.  The aim of this particular group is to provide connections to tax professionals and the IT world.  It allows for professionals to stay updated in terms of technology.
  4. NATP – The National Association of Tax Professionals group is focused on providing information to both professionals and layman alike.  They are a nonprofit group in connection with over 25,000 professionals in all aspects of the taxes field.  They are a closed group with just under 10,000 members.  The NATP group has been active since 2008.
  5. Everything Small Business – This group opened its virtual doors in 2012 and has only twelve members.  Their focus is to provide small business owners with the opportunity to learn about other fields, create joint ventures, or just stay apprised to what’s new in the business world.  This group is run by the host of a radio show for small business owners, and thus far the group has remained open.

Whether you’re looking to make connections for future business ventures or you’re just looking to stay informed, any one of the aforementioned groups would be helpful in either capacity.  We look forward to contributing valuable information to these groups in the future!  Oh, and remember to connect with us on LinkedIn!

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Penalties for Failure to File 1099 and W-2 Forms

Online software for 1099The January 31st deadline has passed for filing 1099 and W-2 forms to your employees, but you’ve still got some that haven’t been filed.  So what happens now?

If you’ve forgotten to file, or simply become too bogged down with work to get all of your forms filed, there are penalties you will have to deal with.  Within 30 days of the deadline, penalties will run about $30 per form that you haven’t filed or have incorrectly filed, with a maximum penalty of $250, 000 for larger businesses.  If you’re running a small business, your maximum yearly penalty will be $75,000.

After 30 days, the penalties for not filing become much more expensive.  With this set of penalties, you have until August 1 to file, but you will be charged $60 per correct return.  The maximum charge for a large business is $500,000 and a small business is $200,000.

Once the August 1 deadline has passed, you’re looking at quite a costly endeavor.  With fines weighing in at $100 per form and potential maximum penalties at $1.5 million for large businesses, this is absolutely a time sensitive situation.  Even small businesses may have to deal with a maximum fine of $500,000, which has the potential to do serious damage to your bottom line.

We can still help!  Online File Taxes is set up to easily and efficiently process your 1099 and W-2 forms even after the deadline has passed.  We can help you right your failure to file before it becomes too expensive to correct.  Our system is simple and affordable, and we’ve got the ability to process hundreds of forms.

At Online File Taxes, we pride ourselves on being a one stop solution for your form filing needs.  Stop by our website today and save yourself from harsh penalties!

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Deadline for 1099s and W2s: January 31st

Online software for 1099The deadline to file 1099s and W2s is January 31, which is rapidly approaching!  If you’re still at your desk buried under a mass of paperwork, no worries!  Online File Taxes can help you, and quickly!

We want to simplify the process of filing taxes and alleviate some of the stress associated with this time of year!   With computer software there is still a massive amount of work to be done on your end, so let us help!  We can process, file, print, and mail all of your data in three easy steps!  We’re ready and waiting to handle hundreds of forms in a short period of time.

Failure to file these forms or filing late can be a costly mistake.  If the IRS feels that you don’t have reasonable cause for filing late, penalties start to add up.  Penalties for filing late can be as much as $30 per form within the first 30 days.  Those types of fees can add up, and the same penalty goes for mistakes as well!

If you’re a CPA and you’re overwhelmed at this point, please contact us.  We have a wonderful referral incentive for you and your clients.  Your clients will get a 10% discount on their first order, and we will give that 10% right back to you!  You can’t lose!

For more information on what we do, and how we work please check out our helpful video: http://bit.ly/L4xWIA

For assistance will all of your tax filing needs, visit us on our website!

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Tax Preparation Deadline Approaches

File 1099s onlineThe January 31, 2014 deadline for filing your tax forms for your small business is quickly approaching!  Don’t let yourself and your business fall victim to massive penalties for untimely tax filing.  It seems daunting, but don’t worry!  Whether you have one or hundreds of forms to file, we are here for you!

At Online File Taxes, we’ve set a personal goal of making tax filing as hassle free as possible.  We’ve narrowed down the process of filing all of the different 1099 forms and W-2s into three easy steps.  Our simple end-to-end online solution eliminates the need for printing on preprinted forms, stamps, envelopes, and the general confusion associated with filing with paper returns. There is no software to download and no forms to purchase. Simply register with us and begin entering your 1099 form information; we’ll take care of the rest.

We also eliminate the concern of making sure the forms get to your employees.  Our services include both e-filing with the IRS and printing and mailing recipient copies.  You can also select the option of having your employee receive their forms online.  Our pricing starts at just $3.50 per form and pricing discounts come with quantity.  However, the discounts apply per order so if you’ve got multiple forms to file, it is suggested you do it all at once!

For the CPAs out there buried in a mountain of W-2s and 1099s, we also offer a referral service.  If you refer your clients to us, they will receive 10% off their order, and you will receive a referral bonus of 10% of the total cost of their order!

Time is running out, so please don’t hesitate to open an account with us and start filing today!

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Relief to CPAs

File 1099s onlineBeing a CPA at this time of year can be a harrowing experience.  Being neck deep in paperwork for a bunch of different clients makes becoming overwhelmed an easy feat.  Don’t worry, we can help!

If you can’t possibly take on more work, refer your clients or friends to us and we’ll give both of you a 10% referral discount.  That means, they get 10% off their total first bill, and you get that 10%!  All it takes is a few simple steps!

First, register for an account with us and we will give you a coupon code that is unique to you. You put this code on your web site or email it to anyone you want to refer.  Your clients use the coupon code at the time of registration and they receive a 10% discount at checkout.  Then, at the end of each month we pay you 10% their purchase price.  You can access your account at any time to see which of your clients has used the coupon code you provided to them and how much they paid as part of their first purchase.

We can help take the stress out of tax time!  For more information about us, check out this video or visit us on our new website!

File 1099s online

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