Happy New Year!

2005 has gotten off to a soggy start, but hopefully it is sowing the seeds of happiness, prosperity and growth for everyone.

Check out my website for some great tips. The tax tip is updated weekly and the business and financial tips are updated monthly. In addition, there is a QuikGuide that has some information regarding 2005 tax rules and rates.

The tax tip for this week deals with tax deadlines through June 2005, the business tip for January deals with hiring your first employee and the financial tip deals with knowing what a late payment can cost you.

California will be starting a tax amnesty program beginning on February 1. If you have not filed a past due California tax return (this includes income tax, franchise tax and sales tax), you may be eligible. Also, if you have been notified by the Federal government that they have made a change to a prior return (and the state has not notified you of the same change), are being audited by the Franchise Tax Board or State Board of Equalization, or have another situation whereby you may owe the state some money, you may also be eligible. Please contact me so that the proper forms can be filed to take advantage of tax amnesty. Once the amnesty period has passed, the penalties will be substantial. The amnesty does not apply to the tax due, but does apply to the penalties.

Here's a short list of tax deadlines for January 2005.

* For businesses:

January 31 – Employers must provide 2004 W-2 statements to employees.

January 31 – 1099 forms must be given to payees for such payments as interest, dividends, royalties, and commissions.

January 31 – Payroll tax returns are generally due (for example: Form 940 federal unemployment tax return for 2004 and Form 941 payroll tax return for fourth quarter 2004).

* For individuals:

January 18 – Fourth and final estimated tax payment for 2004 must be made unless you file your 2004 income tax return and pay any taxes due by January 31.

January 31 – Deadline for receiving your 2004 W-2s, 1099s, and other tax information forms. If there are errors, contact the sender immediately and request a corrected copy.

For more information or for help with any of your tax filings, please contact my office.

Linda