IRS Offers a Deal to Companies Claiming Contractors
Many companies make payments to independent contractors. The IRS, however, prefers to see workers classified as employees. Over the years, such disputes have triggered tax audits and court cases. Recently, the IRS has offered amnesty to companies with questionable claims of hiring contractors. More
Home Office Deductions Demand Exclusivity
In order to take deductions for an office in your home, you must meet several requirements. For instance, you must use the space “regularly and exclusively” for business. A recent decision by the U.S. Tax Court indicates that exceptions won’t be tolerated. More
Making Sense of Mutual Fund Taxation
When you gather up all the paperwork for filing your 2011 tax return, you may notice some surprising information from your mutual funds. Last year was marked by volatility in the financial markets, with losses as well as gains. Yet you may owe tax on capital gains from your mutual funds, no matter how well or how poorly they performed. More
Tax Calendar
FEBRUARY 2012
February 15
Individuals. If you claimed exemption from income tax withholding last year on the Form W-4 you gave your employer, you must file a new Form W-4 to continue your exemption for another year.
Employers. For Social Security, Medicare, withheld income tax, and nonpayroll withholding, deposit the tax for payments in January if the monthly rule applies.
February 16
Employers. Begin withholding income tax from the pay of any employee who claimed exemption from withholding in 2011, but did not give you a new Form W-4 to continue the exemption for 2012.
February 28
All businesses. File information returns (Form 1099) for certain payments you made during 2011. If you file Forms 1099 electronically (not by magnetic media), your due date for filing them with the IRS is April 2.
February 29
Employers. File Form W-3, along with Copy A of all the Forms W-2 you issued for 2011. If you file Forms W-2 electronically (not by magnetic media), your due date for filing them with the Social Security Administration is April 2.
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