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September 2020

Don’t Forget This Essential Step if You Are Starting a New Business

Don’t Forget This Essential Step if You Are Starting a New Business

Starting a new business is a process that involves many steps, and one of the most important is getting an Employer Identification Number, or EIN.

Read on to learn more about this important step and to discover how to apply for an EIN. 

What Is An Employer Identification Number?

An Employer Identification Number (EIN), also known as Federal Tax Identification Number, is used to identify employers for tax purposes, and most businesses need one. EINs have nine digits and are assigned by the Internal Revenue Service. If you already have an EIN and the organization or ownership of your business changes, then you may need a new number.

How to Know if I Need an EIN?

Finding out whether you need an EIN is a very simple process. Ask yourself the following six questions. If you answer “Yes” to any of them, then you need an EIN. 

  1. Does your company has employees?
  2. Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
  3. Does your business operate as a corporation or partnership? 
  4. Do you withhold taxes on income, other than wages, paid to a non-resident alien?
  5. Do you have a Keogh plan?
  6. Are you involved with any of the following types of organizations?
  • Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
  • Estates
  • Real estate mortgage investment conduits
  • Non-profit organizations
  • Farmers’ cooperatives
  • Plan administrators

How to Apply for an EIN?

You can apply for an EIN in a variety of ways, including by fax, mail, telephone (for international applicants), and online. The IRS offers this service for free and issues only one EIN per responsible party per day.  

Keep This in Mind About EINs

Above all, an important fact to keep in mind about EINs is that you must make sure to keep your business mailing address, location, and responsible party up to date. EIN holders must report changes in the responsible party within 60 days. Therefore you must be diligent when any of these modifications take place.

Contact the Experts at JT Tax Services

If you are starting a new business and need help choosing the right structure, contact the experts at JT Tax Services today. We have the experience, the knowledge, and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

We are located in Oxnard, California. Contact us by email, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

Did You Request an Extension to File Your Taxes? Don’t Forget This Important Date

Did You Request an Extension to File Your Taxes? Don’t Forget This Important Date

If you filed an extension to file your taxes you should keep in mind that the October 15 due date is less than one month away.

If you didn’t request an extension and haven’t filed a tax return yet, then you should take action as soon as possible. This is important, as it will help you avoid additional interests and penalties. 

Taxpayers who expect a refund should choose direct deposit to have the money deposited directly into their financial account. This is a much faster way to get your refund than expecting a paper check to arrive by regular mail.

Useful Online Resources

If what you want is tracking the status of your refund, this can be easily done using the Where’s My Refund tool available on the IRS website, or downloading the mobile app IRS2GO, available for Android and iOS devices.

There are other tools provided by the IRS that you may find useful after filing your taxes. The Tax Withholding Estimator helps you check that your employer is withholding the right amount of taxes from your paycheck. On the other hand, if you discover a mistake in your return after filing it, you can use the tool Should I File an Amended Return to determine if you should file an amended return or make other changes.

Some Important Exceptions

While October 15 is the due date for most taxpayers, there are exceptions to this rule. Members of the military and other personnel serving in a combat zone have 180 days after they leave the combat zone to file returns and pay their taxes. Another important exception is taxpayers in federally-declared disaster areas who already have a valid extension.

The IRS puts at the disposal of taxpayers online options to file and pay taxes. However, it’s always a good idea to seek the assistance of a tax expert. This way you’ll to ensure that your withholding is correct and that you get the credits you qualify for.

Contact the Experts at JT Tax Services

Looking for expert, dependable advice on taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

Does Your ITIN Expire This Year? Renew It to Avoid Refund Delays

Does Your ITIN Expire This Year? Renew It to Avoid Refund Delays

If your ITIN expires this year, or if it already expired, you should renew it as soon as possible to avoid unnecessary refund delays when you file your tax return next year. 

Read on to discover what ITIN stands for, what ITINs expire this year, and how to renew this important identification number.

What Is an ITIN?

It’s worth remembering that ITIN stands for Individual Taxpayer Identification Number. This is a 9-digit number that the Internal Revenue Service (IRS) assigns to those taxpayers who don’t qualify for a Social Security Number (SSN) but need an identification number for tax purposes. 

What ITINs Expire in 2020?

The following ITINs expire on December 31, 2020. They must be renewed to avoid delays in your tax refund next year:

  • ITINs with middle digits 88
  • Those with middle digits 90, 91, 92, 94, 95, 96, 97, 98 or 99, if assigned before 2013 and if not already renewed

How to Renew an ITIN

To renew your ITIN, fill out Form W-7 and submit all required documentation. When you submit the form you are not required to attach a tax return, but you must indicate the reason why you need an ITIN. 

Later this summer the IRS will send notices to people whose ITIN expires this year. The notices include instructions about how to renew the ITIN. If your ITIN expired already and you expect to file a tax return in 2021, you can renew your ITIN any time.

If you receive a renewal letter, you have the option of renewing ITINs for your entire family at the same time. This includes the tax filer, spouse, and any dependents claimed on the tax return.

Avoid These Common Mistakes When Renewing Your ITIN

These are some common mistakes people make when they renew their ITIN. Avoid them to ensure that the process is as agile and fast as possible.

  • Mailing identification documentation without a Form W-7
  • Missing information on the Form W-7
  • Insufficient supporting documentation, such as proof of U.S. residency or documents that support name changes.

Contact the Experts at JT Tax Services

Looking for expert, dependable advice on taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

We are located in Oxnard, California. Contact us today by email, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.