Most people in Northern California like where they live. And what’s not to like about it? Between world class professional sports teams (yes, we’re talking about the Warriors and Sharks), technological development firms, access to world renowned landmarks and restaurant choices, millions of people think the San Francisco Bay area is great.
For many small business owners, the line between personal tax obligations and business tax obligations is not always clear. Depending on the type of business structure you choose, your business taxes will be filed with your personal return or may need to be filed separately. And that's just the tip of the iceberg. There are many more tax-related financial decisions that need to be made when setting up a new business.
If you currently live in California but used to live in another state, you may have noticed that taxes tend to be higher here. We get a lot of great services for that money, but paying state taxes can be expensive. So much so, in fact, that some people contemplate a strategic out-of-state move to avoid the higher tax rates - especially if they know they'll soon be coming in to some money (selling a business, selling real estate, settling litigation, etc).
There's something official about filing tax returns that makes them seem set in stone. But tax returns are amendable - and not just by the IRS. Just as the IRS can reach out to you to check on certain details or request certain forms, you can also amend your tax return to better reflect your financial situation.
When February turns to March and March turns to April, everyone starts thinking about their taxes. Those months have come and gone this year, but in the build-up to Tax Day, it is understandable for many taxpayers to think "yikes, I wish I could just not file taxes!" It's straight out of a dream, but unfortunately, every year, you have to file your taxes.
Now that “refund season” has come and gone, taxpayers who did not have the fortune to have an income tax refund check may confront the possibility of owing money to the federal government. Indeed, most people know that the interest and penalties accrue on unpaid taxes, which can lead to a larger tax bill the longer it goes unpaid.
We have previously written about the complicated and ever-changing tax laws in the United States. And while Congressional politicians complain the most about taxes and the IRS, they are largely to blame for the state of our tax code. According to Forbes, some 66 major tax laws have been passed by Congress since 1960 - more than one per year.