Tax Tips for Businesses

Business or Hobby?
It is generally accepted that people prefer to make a living doing something they like. A hobby is an activity for which you do not expect to make a profit. If you do not carry on your business or investment activity to make a profit, there is a limit on the deductions you can take.

Business Eligibility for Schedule C-EZ.
Your business may have become eligible to use the abbreviated Schedule C-EZ instead of the longer Schedule C when reporting business profit and loss on your last year's federal income tax return, according to the IRS.

Deductible Home Offices.
Whether you are self-employed or an employee, if you use a portion of your home exclusively and regularly for business purposes, you may be able to take a home office deduction.

Filing an Extension.
If you can't meet the April 15 deadline to file your tax return, you can get an automatic extension of time to file from the IRS - five months for partnerships, and six months for corporations. The extension will give you extra time to get the paperwork in to the IRS, but it does not extend the time you have to pay any tax due. You will owe interest on any amounts not paid by the April deadline, plus a late payment penalty if you have paid less than 90 percent of your total tax by that date.

Filing Deadline and Payment Options
If your'e trying to beat the tax deadline, there are several options for last-minute help. If you need a form or publication, you can download copies here. If you have trouble paying your tax bill, the IRS has several payment options available.

Refund, Where's My Refund?
Are you expecting a tax refund from the Internal Revenue Service this year? If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in about half the time it would take if you filed a paper return, and even faster when you choose direct deposit.

Your Appeal Rights
Are you in the middle of a disagreement with the IRS? One of the guaranteed rights for all taxpayers is the right to appeal. If you disagree with the IRS about the amount of your tax liability or about proposed collection actions, you have the right to ask the IRS Appeals Office to review your case.

Information about IRS notices
It's a moment any taxpayer dreads. An envelope arrives from the IRS and it's not a refund check. But don't panic. Many IRS letters can be dealt with simply and painlessly.