Here are the answers to some of the most Frequently Asked Questions our firm receives.
Q. What do I
do if I receive a notice from the IRS about my
A. Don't panic! the first thing to do is carefully read the notice—to determine why it was sent, what the IRS is requesting, and what they want you to do. It may be nothing of importance; it may even be a notice in your favor. After reading it you should bring it to our attention.
Q. What is the new mileage rate?
A. Starting in January 1, 2015 the mileage rate for business is 57.50 cents per mile. The rate for 2014 was 56.00 cents per mile.
Q. What is the new minimum wage?
A. The Federal and Maryland minimum wage is $7.25 per hour effective until 12/31/14. It increases to $8.00 per hour on 1/1/15 and to $8.25 per hour on 7/1/15.
Q. What is the tax rate for Maryland?
A. The sales tax rate is 6%, and 9% on alcohol.
Q. What is The Electronic Federal Tax Payment System (EFTPS)?
A. The EFTPS is the method used for paying federal taxes electronically. All taxpayers are now required to use the EFTPS. Go to www.eftps.gov to enroll.
Q. Has the state of Maryland made changes in the way state withholding tax is paid?
A. Yes. Effective Jan 1, 2004 the state of Maryland has implemented a three day rule. If the state witholding tax from the prior year exceeds $ 15,000, then a withholding return is due within three business days following a payroll in which the current withholding exceeds $ 700.00
Q. Who must issue Form 1099?
A. Any business who makes payments totaling $ 600 or more to anyone (other than a corporation) for services rendered must file Form 1099.
Q. How long do I keep my records and tax
A. You should keep your records and tax returns for at least 7 years from the date the return was filed or the date the return was required to be filed, whichever is later. It is recommended that you keep these records longer if possible.