UNIKO Media Group, Author at JT Tax Services

IRS Further Postpones tax-filing and tax-payment deadline for California Storm Victims

October 18, 2023

Individuals and businesses in 55 of California’s 58 counties will be able to take advantage of the new federal deadline. Keep reading to learn all the details.

What You Need To Know

The Internal Revenue Service (IRS) has announced that it will postpone for a second time the federal tax-filing and tax-payment deadline for victims of storms that hit California earlier this year.

Individuals and businesses in 55 of California’s 55 counties (the exceptions are Lassen, Modoc and Shasta counties) will have until Thursday, November 16 (instead of October 16), to file and pay their 2022 tax returns.

The eligible returns and payments include those listed below (keep in mind that this extension applies only to federal taxes):

2022 individual income tax returns and payments normally due on April 18.
For eligible taxpayers, 2022 contributions to IRAs and health savings accounts.
Quarterly estimated tax payments normally due on April 18, June 15 and Sept. 15.
Calendar-year 2022 partnership and S corporation returns normally due on March 15.
Calendar-year 2022 corporate and fiduciary income tax returns and payments normally due on April 18.
Quarterly payroll and excise tax returns normally due on May 1, July 31 and Oct. 31.
Calendar-year 2022 returns filed by tax-exempt organizations normally due on May 15.

Other returns and payments qualify. Visit the IRS Disaster Assistance and Emergency Relief page for more details.

Taxpayers in the affected areas don’t have to contact the IRS or take any other action to take advantage of the extended deadline. The IRS will automatically provide filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area.

Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). To learn more, contact the IRS or get in touch with our experts at JT Tax Services.

JT Tax Services: Taxes Made Easy

We are located in Oxnard, California, contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services. Feel free to contact us today!

5 Bookkeeping Terms You Need To Know

By: UNIKO Media Group

October 12, 2023

Bookkeeping can be a daunting task, especially if you are new to it. It involves recording financial transactions, organizing them, and ensuring that they are accurate. To do this effectively, you need to be familiar with some bookkeeping terms. In this blog post, we will discuss some of the essential bookkeeping terms that you need to know.

Assets

Assets are the valuable items that a company or a person possesses. They can be tangible or intangible, such as cash, land, buildings, and patents. In bookkeeping, assets are recorded on the balance sheet and are used to determine the net worth of a company or an individual.

Liabilities

Liabilities are the obligations that a company or an individual owes to others. They can include debts, loans, and accounts payable. Like assets, liabilities are also recorded on the balance sheet and can affect a company’s or individual’s financial health.

Expenses

Expenses refer to the costs incurred by a company or an individual in running their operations. They can include salaries, rent, utility bills, and other expenses that are necessary to keep the operation going. In bookkeeping, expenses are recorded on the income statement and are deducted from revenue to determine the net income.

Revenue

Revenue is the income generated by a company or an individual from their operations or investments. It can come from sales, rental income, interest on investments, and other sources. In bookkeeping, revenue is recorded on the income statement and used to calculate the net income.

Equity

Equity is the value that remains after all the liabilities are deducted from the assets. It represents the ownership of the company or the individual. In bookkeeping, equity is recorded on the balance sheet and can be affected by changes in assets or liabilities.

Wrapping It Up

Knowing these bookkeeping terms is essential for anyone who wants to keep their financial records accurate and up-to-date. By understanding the definitions and how they apply to your business or personal finances, you can make informed decisions that will keep you financially healthy. Keep these terms in mind when working with your bookkeeper or accountant and use them to track your financial activity. Remember, good bookkeeping practices lead to financial stability and success!

JT Tax Services: Taxes Made Easy

When it comes to taxes, knowledge is power. That’s why at At JT Tax Services, we give you the peace of mind that comes with knowing that you are working with experienced professionals with in-depth knowledge of all applicable tax laws and regulations.We are located in Oxnard, California, contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services. Feel free to contact us today!

Closeup of a man talking on the phone illustrates blog "Scammers Impersonating the IRS on the Phone: What You Need To Know"

What You Need To Know About Scammers Impersonating the IRS on the Phone

By: UNIKO Media Group

September 28, 2023

The Internal Revenue Service (IRS) is the federal agency responsible for administering and enforcing the nation’s tax laws. Unfortunately, scammers and fraudsters have found a way to exploit the agency’s reputation and use it to perpetrate fraud schemes. Here’s what you need to know about this scheme.

How IRS Phone Scams Work

Scammers use different tactics to defraud taxpayers, but the most common method is to mimic the IRS. They call unsuspecting victims, often telling them they owe back taxes or claiming there is an issue with their tax return.

The scammer then demands immediate payment or threatens legal action, including arrest, deportation, or revocation of their driver’s license.

They may also ask for personal or financial information to “verify” the target’s identity or eligibility for a refund. These calls often use scare tactics or urgency to get the victim to act quickly without verifying the validity of the caller or the information provided.

How To Spot an IRS Phone Scam

Knowing the red flags of a scam call can help you avoid becoming a victim. Some common signs of an IRS phone scam include:

A caller who demands immediate payment over the phone or threatens legal action.
A caller who uses aggressive or abusive language, or speaks in a robotic or scripted tone.
A caller who claims to be from the IRS but doesn’t know your name or other personal details.
A caller who asks for sensitive information, such as your Social Security number, bank account number, or credit card information.
A caller who asks you to transfer money or buy gift cards or other prepaid cards.

What To Do if You Receive an IRS Phone Scam Call

If you receive a call from someone who claims to be from the IRS and you suspect it’s a fraudulent call, don’t panic or engage with the caller. Here are some steps you can take to protect yourself:

Hang up immediately
Don’t give out any personal information
Don’t make any payment or transfer money
If possible, note the caller ID information or the number the caller used
Report the call to the IRS and the Federal Trade Commission (FTC)
How to report an IRS phone scam

Reporting IRS phone scams is essential to help law enforcement catch the perpetrators and prevent them from defrauding others.

If you think you’ve been targeted by an IRS phone scam, report it to the IRS by email at phishing@irs.gov (Subject: IRS Phone Scam). Make sure to include the number of the caller, any phone number you are instructed to call, and a brief description of the communication.

JT Tax Services: Taxes Made Easy

Understanding Double Taxation: What It Is and How It Affects You

By: UNIKO Media Group

September 20, 2023

If you’re a business owner or an employee of a company, you have probably heard of the term “double taxation.” It can be a confusing and complex concept to grasp, but understanding it is crucial, especially when it comes to handling taxes.

What Is Double Taxation?

Simply put, double taxation refers to the imposition of two or more tax obligations on the same income, asset, or financial transaction.

This can happen in several situations; one of the most common is when a business earns profits, and the earnings are taxed at both the corporate and personal levels. In other words, the profit generated by the company is taxed at the corporate level, and the dividends paid to shareholders are subject to personal taxes.

Another situation where double taxation occurs is in international trade. When a foreign company does business in a particular country, the profits they make are taxed in both the country of origin and the country where they operate.

Double Taxation: What You Need To Keep in Mind

Double taxation may seem unfair, but it is standard practice in many countries. The US, for example, is known to have one of the highest corporate tax rates globally, which makes it essential for businesses to consider double taxation when planning their investments.

To avoid double taxation, several strategies can be employed. For businesses, choosing a legal entity, such as a partnership or a limited liability company (LLC), can help lower the tax burden.

For individuals, it’s essential to take advantage of any tax allowances or credits that may apply.

Wrapping It Up

In summary, double taxation is a complex issue that can affect both businesses and individuals.

Understanding the basics of double taxation and implementing strategies to reduce the tax burden can help businesses and individuals stay compliant while maximizing their tax savings.

So it’s crucial to seek the advice of a tax professional who can help navigate through different tax jurisdictions and ensure you comply with all relevant tax laws.

JT Tax Services: Taxes Made Easy

What Is a Limited Liability Company (LLC)?

By: UNIKO Media Group

September 12, 2023

One of the most popular business structures, especially for small business owners, is a Limited Liability Company, or LLC for short. If you’re unfamiliar with what an LLC is or how it operates, don’t worry! This guide will provide you with a comprehensive overview of what an LLC is, how it works, and why it might be the right option for your business.

What is an LLC?

A limited liability company, or LLC, is a legal structure that combines the benefits of a partnership or sole proprietorship with those of a corporation.

Essentially, it’s a way to structure your business that offers both personal liability protection and flexibility.

By forming an LLC, you are creating a separate legal entity that can own property, enter into contracts, and conduct business.

However, unlike corporations, there are no shareholders or boards of directors to answer to – instead, owners of an LLC are referred to as members and can manage the company themselves.

How does an LLC work?

To form an LLC, you will need to file paperwork with your state’s Secretary of State and pay a registration fee.

Typically, this involves providing basic information about your company, such as its name, address, and the names of its members.

Once your LLC is registered, you’ll need to draft an operating agreement, which outlines how the business will be run, how profits and losses will be divided among members, and other important information.

An LLC is typically taxed as a pass-through entity, meaning that the profits and losses are reported on the individual tax returns of members and not at the business level.

Why choose an LLC?

There are several benefits to choosing an LLC as your business structure.

One of the most significant advantages is that LLCs provide personal liability protection to their owners. This means that if your business is sued or incurs debt, your personal assets (such as your home or car) cannot be used to satisfy those debts.

Additionally, LLCs offer flexibility in terms of management structure, and there are typically fewer formalities required than with a corporation. This means that you can operate your business more informally while still enjoying the legal benefits of being a separate entity.

LLCs: What You Need To Keep in Mind

While LLCs offer many benefits, there are also some potential drawbacks to consider.

One of the most notable is that LLCs can be more expensive to form and maintain than sole proprietorships or partnerships.

Additionally, the process of forming an LLC can be complex, and it may be beneficial to work with a lawyer or tax professional to ensure that you’re complying with all applicable laws and regulations.

Finally, while LLCs provide personal liability protection, there are limits. For example, members can still be held personally liable if they engage in fraudulent or illegal activities on behalf of the company.

Wrapping It Up

Overall, a Limited Liability Company is a popular legal structure for entrepreneurs looking to start a business.

It offers personal liability protection, flexibility, and a relatively easy process to set up and maintain.

However, there are also some potential drawbacks to consider, such as the cost of formation and maintenance.

By understanding how an LLC works and weighing the pros and cons, you can make an informed decision about whether it’s the right structure for your business.

JT Tax Services: Taxes Made Easy

What Is a C Corporation and How Does It Work?

By: UNIKO Media Group

September 8, 2023

When starting a new business, it’s important to choose the right structure for your company. One popular option is a C Corporation. But what are they, exactly? Read on to learn more about C corporations, from a basic definition to their pros and cons.

Definition of a C Corporation

A C Corporation is a type of business structure in which the company is owned by shareholders who have limited liability for the company’s debts and obligations.

The corporation operates as a separate legal entity that can conduct business, own assets, and enter into contracts.

This means that the corporation can sue and be sued, enter into agreements, and pay taxes separately from its owners.

How a C Corporation Works

A C Corporation is managed by a board of directors who are elected by the shareholders.

The board of directors is responsible for making major business decisions, such as choosing the company’s officers, approving budgets, and setting corporate policies. The officers of the corporation, such as the CEO and CFO, are responsible for the day-to-day operations of the business.

C Corporations issue stock to shareholders, which represents their ownership in the business. Shareholders are not involved in the day-to-day operations of the business and do not have liability for the debts and obligations of the corporation.

Advantages of a C Corporation

One of the main advantages of a C Corporation is that it offers limited liability to its shareholders.

This means that the personal assets of the shareholders are protected from the corporation’s debts and obligations. Additionally, the corporation can raise capital by issuing stock to investors, which can help the business grow and expand.

Another advantage of a C Corporation is that it can deduct certain business expenses, such as salaries, benefits, and property taxes. This can help reduce the company’s tax liability and increase its profits.

Disadvantages of a C Corporation

One of the main disadvantages of a C Corporation is that it is subject to double taxation. This means that the corporation pays taxes on its profits, and then the shareholders pay taxes on any dividends they receive. This can result in a higher overall tax liability for the company and its shareholders.

Another disadvantage of a C Corporation is that it requires more formalities and paperwork than other business structures, such as a sole proprietorship or partnership. This can result in higher administrative costs and more time spent on compliance.

JT Tax Services: Taxes Made Easy

Tax Glossary: Terms You Need To Know

By: UNIKO Media Group

August 30, 2023

Taxes can be complex, and navigating them could be daunting, especially when you don’t understand the terms used. With that in mind, today we provide you with a comprehensive glossary of common tax terms.

Adjusted Gross Income (AGI)

AGI is your total income from all sources before any adjustments are made for deductions or exemptions. Your AGI is used to determine your eligibility for certain tax deductions and credits.

Taxable Income

Taxable Income is the portion of your income subject to taxes. To calculate your taxable income, start with your AGI, deduct any deductions and exemptions you’re eligible for, and subtract any credits.

Dependent

A qualifying child or qualifying relative, other than yourself, who entitles you to claim a dependency exemption.

Deductions

Deductions are expenses you can subtract from your AGI to lower your taxable income. Some common deductions include interest paid on student loans, contributions to retirement accounts, and charitable donations.

Dependency Exemption

Amount that taxpayers can claim for a “qualifying child” or “qualifying relative”. Each exemption reduces the income subject to tax. The exemption amount is a set amount that changes from year to year.

Exemptions

Exemptions are a set amount subtracted from your taxable income for each person on your tax return. There are two types of exemptions: personal and dependency.

Personal Exemption

Can be claimed for yourself and your spouse. Each personal exemption reduces the income subject to tax by the exemption amount.

Tax Credits

Tax credits are amounts that directly reduce your tax bill. Unlike deductions, which only lower your taxable income, tax credits are a dollar-for-dollar reduction in your tax liability. Some common tax credits include the Earned Income Tax Credit, Child Tax Credit, and Education Credits.

JT Tax Services: Taxes Made Easy

What Is a Sole Proprietorship?

By: UNIKO Media Group

August 2, 2023

Before you start a business, you have to decide what form of business organization is right for you. Among the most popular options is a sole proprietorship. But what exactly is a sole proprietorship and is it the right fit for your business dreams?

Sole Proprietorship: a Basic Definition

A sole proprietorship is a business that is owned and run by a single individual who is responsible for all of its debts and obligations.

This is the simplest and most common form of business structure, particularly for small businesses or home-based enterprises.

In a sole proprietorship, there is no legal separation between the owner and the business entity. This means that the owner is personally liable for all the company’s debts and legal actions.

Benefits of Sole Proprietorships

One of the main advantages of a sole proprietorship is its simplicity. A sole proprietorship is easy to set up and maintain, and there are no complex legal or accounting requirements to follow.

Additionally, as the owner and operator of the business, a sole proprietorship gives you complete control over all aspects of the company, including the decision-making and profits.

This means that you don’t have to worry about sharing profits with partners, and you have the flexibility to choose your work hours and style.

Sole Proprietorships: What You Need To Consider

While the simplicity of a sole proprietorship has its advantages, it also has some aspects you need to weigh.

The main thing you need to know about sole proprietorships is that under this type of structure, the owner has unlimited personal liability.

Simply put, this means that since there is no legal separation between the owner and the business, creditors can go after the owner’s personal assets, such as their home, car, or personal bank accounts.

Is a Sole Proprietorship Right for You?

Deciding whether a sole proprietorship is the right form of business organization for you depends on several factors, such as your business objectives, financial situation, and risk tolerance.

If you want complete control and flexibility over your business, have simple accounting needs, and don’t plan on taking on debt or investors, then a sole proprietorship may be a good option.

However, if you plan on expanding your business, taking on investments, or have high-risk assets, then you may want to consider other business structures such as a corporation or LLC.

JT Tax Services: Taxes Made Easy

Woman typing at computer seen from above illustrates blog "Benefits of Filing Your Taxes Electronically"

The Benefits of Filing Your Taxes Electronically

By: UNIKO Media Group

July 20, 2023

In recent years, filing your taxes electronically (also known as e-Filing) has become increasingly popular due to its many advantages. This blog post will explore the benefits of filing your taxes electronically so that you can make an informed decision about how to file.

Faster Refunds

One of the most significant benefits of filing your taxes electronically is that you are likely to receive your refund faster than if you mailed a paper return.

Since electronic filing systems are largely automated, the processing time can be considerably shorter than paper processing. If you need your refund quickly, electronic filing is the way to go.

Accuracy

Electronic filing systems are excellent for reducing errors and increasing accuracy. This means that when you file your taxes electronically, you are less likely to make an error that could result in a tax audit.

Tax software is designed to catch errors and automatically prompt users to correct them before submitting their return. Additionally, electronic filing reduces the chance of math errors, since any arithmetic operations are performed by the software.

Makes It Easier to Track Your Refund

When you file electronically, you can track the status of your tax refund on the IRS website.

This means that you can check your refund status without having to call the IRS or wait for paper notifications to arrive in the mail. This also eliminates the possibility that your refund is not lost in transit to the IRS.

Safe and Secure

Electronic filing also provides increased security for your tax return. With paper filing, there is a chance that your tax return could be lost in the mail or even stolen.

Electronic filing, on the other hand, eliminates these risks by securely sending your tax return directly to the IRS through an encrypted transmission.

Convenient and Time-saving

Electronic filing is also more convenient and practical than traditional filing.

When you e-file, here is no need to print out paper forms, mail them, or wait for a paper return.

All you need is access to a computer, internet connection, and software to file your taxes electronically. Alternatively, a pro can help you file your taxes electronically, so you can still enjoy all the benefits of e-filing even if you’re not confident with computers or just don’t have the time to file your taxes yourself.

JT Tax Services: Taxes Made Easy

Bookkeeping vs Accounting: What Is the Difference?

By: UNIKO Media Group

July 14, 2023

When it comes to finances, there are many terms and concepts that can be confusing. Two of the most commonly misunderstood terms are bookkeeping and accounting. Although related, these are not interchangeable terms. In this blog post, we’ll dive into the definitions of bookkeeping and accounting, their differences, and why they are both important.

What Is Bookkeeping?

Bookkeeping is the process of recording financial transactions that occur in the business. This includes things like purchases, sales, receipts, and payments.

A bookkeeper is the professional responsible for keeping accurate records of these transactions, organizing them, and ensuring that they are up to date.

Bookkeepers also prepare financial statements, such as balance sheets and income statements, that provide a snapshot of the company’s financial position.

What Is Accounting?

On the other hand, accounting is more about analyzing financial data to make better financial decisions.

Accountants need to have an in-depth understanding of the financial data recorded in the books. They assist in analyzing the data to plan budgets and may even get to make financial decisions themselves.

The Relationship Between Bookkeeping and Accounting

As you can see, the work of bookkeepers and accountants isn’t the same, although it is related.

Accountants use the financial information prepared from bookkeeping to help business owners make informed decisions.

In short, accountants interpret financial data gleaned by bookkeepers to help organizations make informed decisions about their finances.

The Difference Between Bookkeeping and Accounting

Now let’s take a look at things that set these two disciplines apart.

The most important difference between bookkeeping and accounting is that bookkeeping focuses on recording data, while accounting is focused on the interpretation of said data.

This basic difference means that the work of bookkeeper and accountants differs in some important ways. While bookkeepers generate statements and prepare books, accountants analyze that information, perform audits, and provide advice.

Keep in mind that while the differences between bookkeeping and accounting are clear, things are not so simple in real life. For example, it’s not uncommon to see bookkeepers perform some basic accounting tasks.