Articles Posted in CA Non-Filer

Unfiled Tax Returns – Get It Done

Did you know that every year many people and businesses face the gavel just because they haven’t filed their taxes? Though you may plead not guilty, the IRS doesn’t think so. In its eyes every person who hasn’t filed their taxes is an offender even though the perspective is different from the person’s view. It isn’t uncommon that every year people and businesses fail to file their tax returns. Sometimes it’s due to ignorance, sometimes not enough information, sometimes to escape it. It doesn’t matter what the situation is, people and businesses are being heavily penalized just because of their unfiled tax returns.

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The CA FTB is contacting more than 100,000 California business entities that have not filed their 2010 state income tax returns. (FTB News Release (June 14, 2012)) When a business is contacted, they will have 30 days to either file or show why no return is due. Otherwise, the FTB will assess tax based on the information reported to them from other agencies.

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Tax relief USA is for the American citizens who are dwelling in the foreign countries. The taxation phenomenon becomes multifaceted and complex as you become taxable under the laws of two different countries. Most of the US expats do not know their rights and obligations as there is not much awareness among the commoners regarding the Tax Relief USA. This article describes the key points related to this relief program.

Let us suppose, if an American citizen is residing and working in Canada, he is obliged to pay the IRS taxes just like other citizens inside the United States. The taxpayer needs to learn the filing requirements the way they are based on American laws. However, this does not mean that he is not bound to pay the taxes under Canadian laws. Fortunately, IRS offers tax relief USA to such individuals which can lessen considerable financial burden.

So what is tax relief USA actually? Though the taxpayer must pay the taxes in both the countries but if the IRS believes that he is eligible for tax relief USA, he will either be given credit for the taxes paid in the foreign country or he will be entitled to exclude a part or the whole income earned outside the US.

There a few benefits including Canada Pension Plan, Old Age Security scheme etc. which are not taxable in the United States. Actually, this tax relief program is based on a tax treaty between the governments of the United States and Canada, which offers that such benefits would be taxed utterly on the base of current residence. In the same way, the above mentioned benefits come to be taxable if the taxpayer obtains them while residing in the USA.

Therefore, these Canadian social security benefits are preceded just like their American counterparts because of the United States tax. However, in case any of such benefits is not subject to taxation in the hands of a Canadian resident, the same benefit is not taxable in the United States.

Obviously this is not a straightforward procedure and having different taxation laws for different countries, legal tax expertise are required to understand it thoroughly. It is sensible to contact a tax relief expert to understand your rights and responsibilities.

Taxpapers.jpgFranchise Tax Board is Contacting Thousands of Businesses to File Delinquent Tax Returns

Sacramento: The state is contacting more than 40,000 California businesses that have not filed their 2008 state income tax returns with the Franchise Tax Board (FTB).

The notices inform the businesses that they have 30 days to file a return or show why there is no tax filing requirement. Businesses that disregard these notices could face tax assessments that may include penalties, interest, and fees.

FTB annually reviews more than 5 million income records received from the Internal Revenue Service, the State Employment Development Department, the State Board of Equalization, financial institutions, and other business entities, then compares that data to tax returns already filed to identify noncompliance. Last year, FTB collected approximately $38 million from non-filing businesses the agency notified.

California faces an annual tax gap of $6.5 billion per year. The tax gap is the difference between taxes owed and taxes paid. The failure to file tax returns is one part of the tax gap along with underreporting of income, overstatement of tax deductions, and the underpayment of taxes owed.