revenue

Internal Revenue Service Extension

Many events can happen in our lives especially when unexpected leaving us unable to file taxes by that April deadline. Luckily the IRS or Internal Revenue Service has an option available for those who find themselves swamped in work or other life events that keep them from getting taxes ready when they are due. The internal revenue service extension is a form found on the IRS website available for when you find yourself needing it most during an unusually stressful tax season.

The internal revenue service extension is a form found on the IRS website available for when you find yourself needing it most during an unusually stressful tax season.

So if you find yourself unable to file your individual federal income tax by the due date which is typically around April 15th, form 4868 can be completed for a possible 6 month extension depending on if you qualify under whatever your circumstances may be. Check out the special rules that may apply if you are serving in the military or living overseas. There are also a number of other tax extension forms including the form 7004 and 1138 for corporations and businesses. Form 7004 for certain business income tax and to request an automatic extension. Form 1138 differs in that it is an extension for corporations or business who need to pay a tax but are expecting a loss.

There are also other extension forms available for those who fall under special tax credits, employee returns and others. Check out the IRS webpage to find the form that is right for you. While six months may seem like a lot of time to catch up on filing, often this time goes by quickly. SO make sure you have all the right paperwork needed to get the documents filed correctly. Work with a tax expert to ensure that your needs are met.
While an internal revenue service extension can help you better prepare and organize your tax information, remember that while the extension is more for people who need more time filing and not for more time to pay taxes where they are owed. Check with the IRS about possible payment plans and other relief if you need more time to pay. With an extension to file, the IRS expects that paper work by October instead of the initial April deadline. So make sure you get going and reduce late payment penalties if needed.

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Fine Art Investments

by Kylee Sanders

Investing in Fine Art is considered to be a very wise decision, taking your future into consideration. A wise investment now can yield you profits in the long run. But taking a few precautionary steps beforehand could save you from making the wrong choice.

Investing in Fine Art is considered to be a very wise decision, taking your future into consideration.

Here’s how you can finally feel confident about your purchase.

Always go for the original, avoid giclée. Giclée is a copy of the original artwork but printed digitally by a machine. A giclée has very less value as compared to the original, and that is why you may want to avoid it.
However, some giclée might have a remarquee or an original signature of the artist and this will lead to increase in price in the near future.
If possible, avoid buying from cruise exhibitions. The main idea behind these kind of auction is to fool people into thinking authenticity means the value of the goods will be high- which is not true. A genuine piece of art may not hold as much value as you think it should. There are many reasons for it. Before you go ahead and decide on the uniqueness of the product, make sure you have done ample of research. Look for auction websites as well because they might give you a lot of idea about what you should and shouldn’t purchase.
Sell your art or paintings at auction houses instead of any other ways. The auction websites usually don’t yield as much for the paintings as they should. At an auction, you can earn almost twice the amount you paid for it. This is because estimates show that only 0.5% of all the originals painting ever bought are sold. Hence, the likelihood of people willing to buy the painting hanging on your wall right now, is pretty high

Other tips for Fina Art Investment are:

If you are conserving an art as an investment, then don’t finalize your choice based on your emotions.

Before you buy an art, make sure you have visited enough number of galleries and are satisfied with your choice. Take your time to visit art exhibitions or institutions. There will always be something that can be added to your knowledge.

Research extremely well. It is important to do so because only after knowing about an artist’s background and other artworks can one put a value to the creation.

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Requesting a W-9

by Ryan Kendall

A W-9 is one of the commonly used forms used by the Internal Revenue Service. It is basically asked by people who pay you money for your services. Requesting a W-9 is extremely important if you are taking the services of a freelancer or an independent contractor. In this form, the person whose W-9 has been requested will give his Taxpayer Identification Number (TIN), which is basically the Social Security Number, to the entity, which has to make the payments against the work done by the worker.

Requesting a W-9 is extremely important if you are taking the services of a freelancer or an independent contractor.

The employer uses this form to make the employee pay checks for the year and also for filling out the W-2 form at the end of the year. It helps the employer to keep a track of the payments he has made in your name. As such, this form is not submitted to the IRS, but only kept as a record in the file of the employee. Now, if you have requested for a W-9, then at some point in the future you will have to give out the 1099 tax form to the employer, where the gross payments you make, will be shown. This is important for the employer. The employer will need this 1099 form, to fill the tax returns at the end of the year. A 1099 will only be needed if the employer is being paid more than $600 in a year, otherwise it is not needed. But if you do obtain it as an employee, you need to send this to the IRS.

How to fill up the W-9

As an employee, you must give out the correctly and carefully filled W-9. When the employer is requesting a W-9 from you, that means he will keep a proper record of you r payments and this is also very important to you. Fill your full name, the one which is on the first line of the federal income tax returns. If you running a business by some other name, then write that name on the second line. Then, select whether you are working in sole proprietorship, partnerships, or any corporation. After completing the mailing address section you will have to give your Taxpayer Identification Number (TIN), which generally is the Social Security Number. A non-resident individual will only give their TIN as they do not have a Social Security Number. Then sign the form with the date.

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IRS – Internal Revenue Service form 8822

by Ryan Kendall

IRS is a US government body which takes the responsibility of collecting revenues and taxes. For example, income tax, corporate, estate, excise and various other types of taxes.

Form 8822 is used to notify the IRS, Internal Revenue Service, when you have changed your address.

Form 8822 is used to notify the IRS, Internal Revenue Service, when you have changed your address. All the important details and information is sent by the IRS to your mailing address. Hence, if you have changed your current address, then it is advisable that you inform the IRS; and you can do this through the filled up form sent directly to the IRS office. Otherwise, document, information and notices will not reach you.

How to update your address using Form 8822

Using the 8822 form, you can update IRA about the change of your mailing address. It is an important step because all the details, information and notices relating to your taxes is only sent to your mailing address provided during the set up of your first account.

How to fill the form?

Form 8822 requires you to fill out only a few basic details, including the old as well as the new address, type of tax return you are applying for, etc. If you share the returns, that is, have joint returns, then you may simply fill all the details in one form.

Alternatives to Form 8822

Form 8822 is mandatory to be filled by only those who file for tax returns. If you don’t, then there is no requirement as such. If you plan to file a tax return and planning to change your address in the near future, you can fill in your new address directly on the form instead of using an additional one, the 8822 form. The other details can be sent via a written letter to the IRS stating the rest of the information.

If matters like paying tax within a time-limit, are sent to the wrong address you will not receive extra time to pay your taxes because the government does not acknowledge or take responsibility for not informing them of your new address.

Failing to update your mailing address on time will have other consequences as well. That is why it is so important to remember and make a note of it to inform the IRS about your new address.

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Fill Out A W-9 Form

by Kylee Sanders

A W-9 form is an internal revenue service (IRS) form, which is used to register you as a taxpayer. It is issued by companies to independent workers, consultants and freelancers. As a self-employed person you are required to fill this form.

It is a self-certification of the fact that the tax identification provided by you to the company you are working for is correct. In the form you are required to certify that you are not subject to backup withholding. Federal income tax has special provision for withholding payment for interest, dividends, royalty, rent or payments from fishing boat operators or stock brokers. However, the US citizens and residents who have declared their tax identification and people not notified by Internal Revenue Service are exempt from it.

W-9 form requires careful filling.

W-9 form requires careful filling before signing as it is a document IRS uses to certify you as a legitimate taxpayer. Here are a few tips to fill the form easily.

Name Field: First fill out your name. The name should match with the name on your tax returns. Being careful will ensure that there is no mismatch.
Business Name Field: In the next column, you need to fill out your business name. It will be the name of your company, you have registered which may be sole proprietorship, a limited liability company or an S-corporation. If you are using your personal name for the business as in case of freelancers, write your own name.
Business Type Box: Check the box signifying the type of business entity. If you are working alone check sole proprietorship box.
Exemption Boxes: Next are the exemption boxes. In most cases it has to be left blank. These boxes do not apply to consultants or freelancers. You need to pay attention only if you are registered as a corporation.
Address Field: Write down your full address here complete with ZIP code. The address should match the one on your tax return.
The requester field: Write the name of company who has requested you to fill out the form. Include address and telephone number.
The tax identification number: Here you have to fill out the TIN(Tax identification number) which may be your SSN ( Social Security number) if you are a sole proprietor or EIN (Employer identification number) if you are not a sole-proprietor.
Declaration: The declaration is that the information filled by you is correct. In case of furnishing wrong information you will liable to perjury. Sign after carefully reading the declaration.

After filling the form send it to your employer. The best way is to personally deposit it, but in this digital age e-mail is the preferred choice. So, make sure to encrypt the form before sending it to avoid data theft.

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