All United States citizens and residents who realize gross income in excess of a specified amount (adjusted annually for inflation) are required by law to file Federal Income Tax Returns. The specific legal obligation to file Federal income tax returns is imposed under the Internal Revenue Title (also known as the Internal Revenue Code) which is published as Title 26 of the United States Code [USC]. The federal government of the United States imposes an income tax on the taxable income of individuals, corporations, trusts, decedents' estates and certain bankruptcy estates.

Income tax returns for calendar year taxpayers are due by April 15 of the next year. Should April 15 fall on a Saturday, Sunday, or holiday, the returns are due on the first succeeding day that is not a Saturday, Sunday, or holiday.

Tax Withholding  

The Federal payroll taxes in the United States of America are primarily collected by employers on behalf of the Internal Revenue Service (IRS). The Federal income tax uses a system of direct withholding. Basically, this means that Employers deduct part of a taxpayer's income directly from their payroll checks. Self-employed individuals make similar payments to the government. The amount of withholding is calculated based on an Employee's expected annual salary and the employee's living situation, that is, married or unmarried, number of dependants and other factors. Withholding does not completely calculate an individual's tax each year. The difference between the amount withheld and the actual tax is either paid to the government after the end of the year, or refunded by the government.

Tax Credits / Deductions  

The United States government rewards certain behavior with tax credits or tax deductions. For example, amounts used to pay mortgage interest on a personal home may be deductible, if the taxpayer elects to itemize.

Methods of Calculating Income Tax  

There are two ways to calculate the United States income tax

(1) The Regular Tax
This is based on the gross income minus any applicable deductions and then a marginal tax percentage is applied according to the taxpayer's income bracket. From this result, any applicable tax credits are subtracted and the result is the income tax owed. If the result is a negative number due to refundable tax credits and/or if the Federal Withholding Tax was greater than the income tax that was actually owed, the taxpayer is entitled to a tax refund.

(2) The Alternative Minimum Tax (AMT)
This is an alternative method for calculating your taxes. It is based on the gross income, computed without regard to certain tax preference items (such as tax-exempt interest on certain private activity bonds) and with a reduced number of exemptions and deductions. This higher income base is taxed in two rate brackets, 26% and 28%, depending on the taxpayer's income. Because AMT does not allow the standard deduction, personal exemptions or certain itemized deductions, your tax under AMT rules may be higher than your tax under regular tax rules.

FILING TAX RETURNS  

If you are expecting a refund for withholding or estimated taxes paid, please ensure that you file your tax return as soon as possible and within the prescribed period. If you delay, you can lose your refund. In order to receive a refund, the return must be filed within 3 years of the due date. If you file a return, and later realize you made an error on the return, the deadline for claiming any refund due is three years after the return was filed, or two years after the tax was paid, whichever expires later.

Failure to file tax returns  

If you do not file voluntarily, the IRS is taking enforcement steps for those who repeatedly choose not to comply with the law. If taxes are owed, a delay in filing may result in penalties and interest charges that could increase your tax bill. Continued non-compliance by could result in additional penalties and/or criminal prosecution.

Our Tax Solutions  

We operate in a competitive market place where there is little apparent differentiation between firms. The fact that our offering is intangible is an additional challenge for clients and potential clients when trying to tell us apart. We believe that our greatest strength is in the quality of our people. We take engaging with our clients and becoming their trusted Tax Preparer seriously.

A lot of tax advice comes from knowing the system. We will tailor our service to your needs. When preparing your tax return, our service offers tax return compliance, ensuring that your records are up to date and liabilities kept as low as possible.

Meeting personal aspirations  

The decisions you take today will have a direct bearing on the future, so our first step is to make sure you are fully compliant. Tax preparation is not just a question of filling in the boxes. Our principals roll their sleeves up and get involved to help you meet your personal aspirations.

Free Consultation  

The initial meeting to discuss your situation is entirely free - you are under no obligation whatsoever to engage our services. We can arrange to meet at whatever time that suits you at either our offices or a convenient place. These informal discussions usually take no more than half an hour.

Internal Revenue Service (IRS) enquiries into Tax Returns  

The IRS has the absolute right, without giving reason, to enquire into returns after their statutory filing date. They may select cases at random and do not have to say whether their enquiry is random or whether they suspect something is wrong. They can make a "full enquiry" to check the return as a whole or an "aspect enquiry", concentrating on one or more specific items but possibly extended if the initial enquiry casts doubt on the whole return's accuracy.

These procedures can cause some concern, not least because the notices issued to notify the start of an enquiry can frighten unnecessarily. You may hear from the IRS before us, so if you receive a "notice of enquiry", contact us immediately.