IRS -LTR 9332006 Full Text
Isn't it amazing that people will spend hours cutting coupons in an effort to save a few dollars. Or will endlessly surf the Internet in search of a product that offers a slightly cheaper product? Perhaps a little money will be saved here and there. Ultimately, however we seem to totally disregard the biggest potential savings of all, Taxes!
One of our largest budgetary expenses happens to be taxes. Income, capital gains, death taxes, the list continues with a multitude of taxes that, if truly considered, would have any sane person perplexed how it is possible to save any money at all. The good news is, due to its incredible complexity, the tax code can offer numerous ways for the average person to reduce their tax bill. In order to realize big tax savings, one must create a tax plan.
Start by auditing your life. Listing your expenses, hobbies, business activities and how you and your family spend your time. Listing short, intermediate, and long-range life and financial goals must also be listed. After these tasks are complete, an astute tax advisor should be able to find ways to reduce tax bills based on your objectives.
Examples of commonly missed tax reduction strategies might include:
Tax Reduction Strategies
Competent tax and accounting advise should always be sought before implementing any changes.
Click on any of the states below to connect to their Department of revenue and taxation.
NOTE: Clicking on California will take you to their state specific site.
POSTED AT 5:23 PM EST Friday, Jun. 6, 2003
By CAROLYN LEITCH From Saturday's Globe and Mail
Don't let estate spark family feud
Julia Walker recently inherited her mother's treasured collection of jeweler. Now she has her mother's favorite pieces, but fears she will soon lose her brothers.
Ms. Walker (not her real name) has been receiving increasingly nasty e-mails from her brothers demanding that she part with some of the jeweler or have her father compensate them for its value.
Last week, she appealed for advice to Les Kotzer, a lawyer at Fish & Associates in Thornhill, Ont., who sees this sort of thing all the time.
Indeed, wills and inheritances have become so increasingly fractious, Mr. Kotzer teamed with partner Barry Fish to write The Family Fight: Planning to Avoid It as a guide to maintaining harmony.
"I've seen terrible fighting over personal possessions," Mr. Kotzer says.
In the case of Ms. Walker, he suggests she might be better off to try to work out an agreement with her brothers before the family rift cannot be healed. He says the brothers' actions may look like bullying, but a court battle would be worse.
But he also points out that the mother, who made it clear to friends that she wanted her daughter to have her jeweler, does not appear to have explained her reasoning to her sons. Some of the bitterness might have been avoided if she had.
Mr. Kotzer says many people who do have wills focus on minimizing taxes in their estate planning instead of avoiding disputes. He knows that estate planning can be a difficult subject for many people to face, but he believes more people would tackle it if they knew how vicious family feuds can become.
"This is a very important thing to parents - that their kids not fight - and yet I see a lot of children fighting."
Mr. Kotzer adds that many people who are elderly now lived through the Great Depression and the Second World War in their youth.
They were the coupon-cutters and savers who often now have considerable assets.
[Continued on Next Page.]
|The Tax Library - Home|
2004 Tax Calendar
This Tax Calendar shows the due dates for filing tax returns and reporting tax information. Generally, if the due date falls on a Saturday, Sunday or legal holiday, the due date is the next business day. However, we recommend using the standard dates listed below to be on the safe side.
While these due dates
are generally applicable, certain tax circumstances and specific situations
may result in modification of these dates. Accordingly, if in doubt, you
should verify the due date with your tax advisor.
|10th||Report tip income for December, if $20 or more, to your employer (use Form 4070).|
|15th||Pay fourth quarter estimated tax payment for preceding year. If you miss this deadline, you may avoid a penalty by filing your final return for 2003 and paying the balance of your 2003 tax by January 31, 2004 (March 1, 2004 for farmers and fishermen).|
|31st||If you have employees (including household employees), provide them with Form W-2. If you are an employee, you should be receiving these forms. If you do not have yours by mid-February, contact your employer.|
|31st||Provide recipients with their copy of Form 1099 if you have paid interest, dividends or reportable miscellaneous income. If you are a recipient, you should be receiving these forms. If you do not have yours by mid-February contact the payer.|
|31st||If you did not pay owed estimated tax on January 15, file your personal income tax return and pay tax due to avoid penalties for underpaying estimated taxes.|
|31st||If you're an employer, report income tax withholding and FICA taxes for the last quarter of 2003 (use Form 941) and file annual return of federal unemployment taxes (use Form 940). If taxes are fully deposited on time, filings can be deferred to February 10.|
|10th||Report tip income for January, if $20 or more, to your employer (use Form 4070).|
|10th||File deferred Forms 940, 941 (See January 31)|
|15th||File Form W-4 to claim exemption from withholding.|
|28th||File any required Forms 1099 for interest, dividends and miscellaneous payments described under January 31 (electronic filers can defer filing W-2s to March 31).|
|28th||If you are an employer, file Forms W-2(Copies A)and transmittal Form W-3 with the Social Security Administration (electronic filers can defer filing to March 31).|
|1st||File your personal income tax return to avoid penalties for underpaying estimated taxes (if you are a farmer and fisherman).|
|10th||Report tip income for February, if $20 or more, to your employer (use Form 4070).|
|15th||File calendar year corporate returns (use Form 1120, 1120-A or 1120S) or file for an automatic six-month extension (use Form 7004).|
|31st||Electronic filers file Forms W-2 and 1099.|
|10th||Report tip income for March, if $20 or more, to your employer (use Form 4070).|
|15th||File your personal tax return (Form 1040, Form 1040A or 1040EZ) or file for an automatic four-month extension (use Form 4868).|
|15th||Household employers who paid wages of $1,400 or more in 2003 file Schedule H (Form 1040).|
|15th||File income tax returns for calendar-year partnerships (use Form 1065) or request an automatic three-month extension (use Form 8736).|
|15th||File income tax returns for calendar-year trusts and estates (use Form 1041) or file for an automatic three-month extension for trusts (use Form 8736). [Estates seeking an extension must submit an application on Form 2758 in time for it to be processed by the filing date. The application should state the period of extension needed.]|
|15th||Pay the first estimated tax payment for individuals (use Form 1040-ES).|
|15th||Deposit the first estimated tax payment for calendar year corporations.|
|30th||If you're an employer, report income tax withholding and FICA taxes for the first quarter of 2004 (use Form 941). If taxes are fully deposited on time, filing Form 941 can be deferred to May 10.|
|10th||Report tip income for April, if $20 or more, to your employer (use Form 4070).|
|10th||File deferred Form 941 (see April 30)|
|15th||Due date for information returns of calendar year exempt organizations (Forms 990, 990-EZ, 990-PF and 990-T).|
|10th||Report tip income for May, if $20 or more, to your employer (use Form 4070).|
|15th||File your individual tax return if you were living outside of the United States, or file for a 2-month extension (use Form 4868).|
|15th||Pay the second estimated tax payment for individuals (use Form 1040-ES).|
|15th||Deposit the second estimated tax payment for calendar year corporations.|
|10th||Report tip income for June, if $20 or more, to your employer (use Form 4070).|
|15th||File calendar year partnership and trust returns (use Form 1065 or Form 1041, respectively) for which an extension was obtained. Partnerships and trusts can file for a further 3-month extension (file Form 8800).|
|31st||File information returns of calendar-year retirement plans such as Keogh plans (Form 5500, 5500EZ).|
|31st||If you're an employer, report income tax withholding and FICA taxes for the second quarter of 2004 (use Form 941). If taxes are fully deposited on time, filing Form 941 can be deferred to August 10.|
|10th||Report tip income for July, if $20 or more, to your employer (use Form 4070). File deferred Form 941 (see July 31).|
|15th||File your individual income tax returns (Form 1040, 1040A or 1040EZ) if you have a filing extension. You may request a further extension until October 15. File Form 2688 in time for your request to be acted on before August 15..|
|10th||Report tip income for August, if $20 or more, to your employer (use Form 4070).|
|15th||Pay the third estimated tax payment for individuals (use Form 1040-ES).|
|15th||Deposit 80% of the amount otherwise due as the third estimated tax payment for calendar year corporations.|
|15th||File extended calendar-year corporation returns (use Form 1120, 1120-A or 1120S).|
|1st||Deposit balance of the amount otherwise due as the third estimated tax payment for calendar year corporations.|
|10th||Report tip income for September, if $20 or more, to your employer (use Form 4070).|
|15th||File your individual tax return (use Form 1040) if you have a second extension.|
|15th||File a calendar-year partnership or trust return (use Form 1065 or Form 1041, respectively) if you have a second extension.|
|31st||If you're an employer, report income tax withholding and FICA taxes for the third quarter of 2004 (use Form 941). If taxes are fully deposited on time, filing Form 941 can be deferred to November 10.|
|10th||Report tip income for October, if $20 or more, to your employer (use Form 4070).|
|10th||File deferred Form 941 (see October 31)|
|10th||Report tip income for November, if $20 or more, to your employer (use Form 4070).|
|15th||Pay the fourth estimated tax payment (for calendar-year corporations).|
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