TNT Tax Service, Phoenix AZ

Trusted and Friendly

TNT Tax Services of Phoenix AZ combines our knowledge and experience with friendly service to take the intimidation out of taxes. Our team is here to keep abreast of all new law changes and give each of you the very best service possible. We offer the following services:

  • Tax Accounting and Preparation
  • Professional Bookkeeping
  • Payroll Services
  • Consulting

For more information on our Services, Please visit our Services Page.

Worksheets for Individuals

image of tax forms and calculator

 

 

 

 

 

Have you forgotten an important deduction in the past years? This year, have all your bases covered.TNT Tax Service is here to help, and to make that easier we have developed a few worksheets to make tax season painless. More Information

 
 
Starting a New Business?

Develop a Plan, and decide on which type of Ownership you will want (Sole Proprietor, LLC, “S” Corp. or “C “Corp.). Develop a Good Record Keeping System. Keep aware of Start Up Costs, and Federal, State, and Local requirements such as licenses, permits, and sales taxes if applicable.

The Business Plan

image of business startup computer and hands

 

 

 

 

 

Do you have an entrepreneurial spirit? Do you desire to be your own boss? Many people have the desire and some solid ideas for a new business, but they either lack the courage to take the first step or they don’t know where to start. Here is some information that may help guide you to take those first steps.

Develop a Business Plan

  • This is the blueprint of your operations for the next couple of years. You control the level of detail, but it should cover:
    • The type of business, product, or service offered
    • Types of customers
    • Pricing
    • Start-up capital
    • Forecasting of revenue and expenses
    • Marketing plans
  • For help, consult sources at the public library, over-the-counter computer software, the Chamber of Commerce, local colleges, and web sites like that of the Small Business Administration at www.sba.gov/business-guide.
  • A business plan is important to obtaining a business loan to set up operations.

Registration of Business

  • From a tax standpoint, you need to decide whether you’re going to embark on this endeavor alone as a sole proprietor, or with others as a partnership.

You may also want to consider incorporating.

  • Depending on which you choose, you may have to deal with legal ramifications.
    • Some states allow you to just start a business.
    • Other states require you to register the type of business and follow certain guidelines before you are able to open the doors.

Location of Business

• The location could be crucial, depending on the business type.

• Parking, space, and cost are all important considerations.

Tax Considerations

  • Most businesses need an employer identification number (EIN). This number is the equivalent of the Social Security number for a business.
    • A federal EIN can be obtained by filing Form SS-4, Application for Employer Identification Number.
    • Form SS-4 is available from your tax preparer, the IRS, or the Social Security Administration.
    • Form SS-4 can be mailed, faxed, or submitted by tele-TIN to the IRS service center for your area.
  • This number will need to be on all employee payroll reports.
  • Any entity other than a sole proprietorship must have an EIN to file income tax returns, even if it does not have any employees.
  • Additionally, your state will probably require a state identification and/or sales tax number for the same reasons.

Employees

  • If you plan to have employees, you are generally responsible for:
  • Payroll taxes
  • Social Security taxes
  • Medicare taxes
  • Unemployment taxes
  • Collection of federal and state (where applicable) withholdings
  • Employee’s share of Social Security and Medicare taxes
  • As an employer, you are responsible for making deposits of the collected taxes at the appropriate times throughout the year.
  • On a quarterly basis, file Form 941 to inform the government of the withholdings and payments.
  • Form 940 for unemployment tax information is required annually.
  • Failure to file and pay on a timely basis could result in severe penalties.
  • Some employers avoid the payroll cycle by treating individuals as independent contractors.
    • The IRS has issued a set of criteria it uses to determine whether an individual is an employee or an independent contractor.
    • If you incorrectly treat an employee as an independent contractor, you may be subject to penalties.
    • Before you make this determination, discuss it with your tax advisor.
  • You may also need to make estimated tax payments for the business entity. The sole proprietor would be responsible for income tax and self-employment tax on the business profits.

Record Keeping

  • It is important to establish a good record keeping system early in your business.
  • An accurate account of the following is necessary:
    • Payroll records
    • All income and expenses related to the business
  • Most businesses have the option of choosing the cash method, the accrual method, or a hybrid method of accounting.
  • If the IRS were to audit your return, you may have to prove expenses by producing receipts.

Start-up Costs

  • Some expenses may need to be separated. The two categories are:
    • Expenses incurred in exploring and setting up the business. These may be amortized over a 60-month period beginning with the start of the business.
    • Expenses incurred from the time the business officially begins. These are currently deductible.
  • Start-up expenses may include training wages, pre-opening utilities, rent, advertising, depreciation, and any exploration costs.

Capital Expenditures

Not all of the expenses paid for a business are currently deductible.

  • Items that have a life of more than one year are currently depreciated or amortized, rather than deducted.
  • Equipment and real estate are common examples of depreciable assets.
  • If your business requires you to maintain an inventory of the items you sell or use to make a product, these costs become part of inventory and are deducted as you sell the product.
  • It is necessary to keep accurate records of the beginning and ending inventory each year.

Other Considerations

Record Keeping

  • It is important to establish a good record keeping system early in your business.
  • An accurate account of the following is necessary:
    • Payroll records
    • All income and expenses related to the business
  • Most businesses have the option of choosing the cash method, the accrual method, or a hybrid method of accounting.
  • If the IRS were to audit your return, you may have to prove expenses by producing receipts.

Start-up Costs

  • • Some expenses may need to be separated. The two categories are:
    • Expenses incurred in exploring and setting up the business. These may be amortized over a 60-month period beginning with the start of the business.
    • Expenses incurred from the time the business officially begins. These are currently deductible.
  • Start-up expenses may include training wages, pre-opening utilities, rent, advertising, depreciation, and any exploration costs.

Capital Expenditures

Not all of the expenses paid for a business are currently deductible.

  • Items that have a life of more than one year are currently depreciated or amortized, rather than deducted.
  • Equipment and real estate are common examples of depreciable assets.
  • If your business requires you to maintain an inventory of the items you sell or use to make a product, these costs become part of inventory and are deducted as you sell the product.
  • It is necessary to keep accurate records of the beginning and ending inventory each year.

Other Considerations

  • Liability and asset protection.
  • Fringe benefits desired (if any).
  • State and local requirements, such as licenses, permits, and registration of the business.

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Quarterly tax payment schedule for 2020
Tax Period Payment Deadline
1/1 thru 3/31

4/15/2020 7/15/2020

4/1 thru 5/31
6/15/2020
6/1 thru 8/31
9/15/2020
9/1 thru 12/31
1/15/2021

Finding a Tax Treparer

Finding a qualified tax preparer is something that we should put a bit of effort into, but studies have shown that even though most of us have our taxes completed professionally, we know very little about those that are handling some of our most sensitive data.

Why do we not spend the time then, to be sure that the firms we hire to take care of this most sensitive task are well qualified and reputable?

If you are in the market for a Tax preparer, whether you hire TNT Tax Service or not, here are some guidelines for you to follow in making wise choices in you selection process.

  • Check to see if they are involved in any professional organizations such as the American Institute of Certified Public Accountants, or the National Association of Tax Professionals. These types of professional organizations and others have a code of ethics that their members must adhere to as well as continuing education to keep them sharp in their field. A membership in an organization like this will display that they take their work very seriously and their work will meet good ethic standards.
  •  Make sure that they perform e-file operations. If a tax preparer does not perform e-file operations, there is a good chance that they do not prepare that many tax returns as the IRS requires any paid preparer that completes more than 10 returns to perform e-file operations.
  • Always verify a tax preparer’s PTIN number. This is required by the IRS to prepare income tax returns for compensation. Further, be sure that they have entered this number on your tax forms and signed them as this is also required.
  • Having a CPA or Law license is not necessary to be a qualified tax professional. At a minimum check to see that they have completed the IRS’ annual filing season program. An example of this is The Accredited Tax Preparer Program which requires study and ongoing education.
  • Always shop and compare. Never use a tax preparer that charges a percentage of your return. More reputable tax professionals will charge by the hour or by the form required to complete your return. Be skeptical of promises of larger returns than you have had in the past, and check to be sure that they will stand with you in the event of an audit.
Get organized before your appointment

Before you schedule an appointment to have your income taxes prepared, take a bit of time to gather all of the necessary documents in order to make your appointment go smoothly.

  • Gather all forms that you have received in the mail including forms W4, 1099’s, 1098’s, K1 or any related income statements.
  • Gather all of your expense receipts and check to be sure that you have records of any expenses that may reduce your Adjusted Gross Income amount.
  • Grab a copy of last years income tax return for reference. This will help to insure that you don’t forget anything that could help with this years filing.
  • If you are reporting business income you will need to provide this information to your tax professional either through printed reports or with your accounting software.
  • If you have sold real property during the year, you will need the settlement sheet information from both the original purchase and the sale of that property

Bear in mind the fact that what you will need to present to your tax preparer will depend on whether or not you have enough itemized deductions to file a long form as opposed to taking the standard deduction. This figure is adjusted yearly but as of 2019 the standard deduction was $12,200 for single taxpayers and $24,000 for married couples filing jointly. Please contact us for updated information on this.