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FAQs



Want to start a business?

I want to start a business. What do I do?

Call me before you start! Numerous issues should be addressed, such as entity type (sole proprietor, corporation, LLC, etc.), type of accounting, employees, tax implications and more.

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Haven't filed taxes in years?

I haven't filed my taxes for several years. What do I do now?

You should file them immediately, even if the IRS has not contacted you. The absence of contact might be because of a change of address or simply being "lost in the system".

The IRS has improved its methods of finding you, so if you have had income over the minimum levels, you must file a return. The longer you wait, the higher the penalties and interest for unpaid taxes. You will lose any refunds to which you may be entitled if filing is done more than three years after the required filing date.

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Can I earn money without paying taxes?

I heard on the radio/saw on the web that I can earn money without paying taxes. What a deal! How can I get in on this?

It's a hoax. There are no special ways to get out of paying taxes. We can help you reduce your taxes, but you aren't exempt from paying them. Tax protestors are now of special interest to the IRS's Criminal Investigation Unit. Check this topic at www.irs.gov under Criminal Investigation.

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Earned Income Credit; Is it for Me?

I don't make much money and can barely get by. Isn't there a special credit for me?

It's called the Earned Income Credit. It is for low-income taxpayers who earn pay below specified levels and meet the criteria for the credit. You must be over 25 and under 65 to qualify for this credit.

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What taxes do I pay if I hire an employee?

I want to hire employees. What taxes do I have to pay?

Depending on the size of your workforce, you will be required to deposit federal withholding taxes for your employees. You are also required to pay federal unemployment (FUTA), State Unemployment (SUTA) and Department of Labor and Industries taxes.

If you haven't already done so, you will need an Employer Identification (EIN) number from the IRS, and you will have to notify the state that you have employees. These agencies will provide their registration numbers to you for the purpose of filing returns. Additionally, some cities require the reporting of employee wages or hours.

You are required to report all "new hires" to the Department of Social and Health Services. You must have each employee verify his or her eligibility to work with a Form I-9.

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Verify employees Social Security Number?

How can I be sure an employee's Social Security Number is correct?

You can log on to www.ssa.gov/employer/ssnv.htm for instructions or call the SSA at 1-800-772-6270 to verify up to 5 names and social security numbers. It is very important that the employee enter the name exactly as it is registered with Social Security.

Incorrect information will result in rejected W-2s by the Social Security Administration as well as penalties assessed for filing incorrect W2s. It can also result in rejected tax returns and claims for the Earned Income Credit. Those who have changed their names should go to the nearest Social Security office to correct this information.

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