For example, telephone services, utilities, and rent are common business services.  Depreciation is a common non-cash expense, because a portion of the cost of the asset is allowed as an expense on the business tax return each year.

To expense something is to consider it as an expense or to write it off a tax return as an expense. For example, a portion of the cost of an asset is expensed each year.

Although most business expenses are considered to be  deductible  for tax purposes, some are not. For example, only 50% of the cost of business meals and entertaiment expenses may be deducted.

You should not file an amended return if you are only correcting math errors as the IRS computers will check your math and correct any errors in calculation. Math errors are errors in adding or subtracting items on your tax return.

Reasons for filing an amendment include:

• Claiming additional dependedts. 
• Removing dependents you previously claimed.
• Reporting your proper filing status.
• Reporting additional income – from a W2, 1099, or other income statement,
• Making changes in your above the line deductions, standard deductions, or itemized deductions.

Find a tax professional you trust to prepare and e-file your return. Nearly all tax preparers use e-file now and many are now required by law to e-file. But it’s still a good idea to tell your tax preparer you want the advantages of e-file — your refund in half the time, or if you owe, more payment options.

 Due date is April 18^th: The Internal Revenue Service has announced that taxpayers will have until Monday, April 18th to file their 2010 tax returns and pay any tax due because Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15th.

Arizona sales tax is one of the most difficult states to monitor and maintain as it has many levels of local and special purpose taxes, it allows municipalities to create their own taxing laws and to collect their own local taxes separate from the state.  Maintaining accuracy for this state is demanding and time consuming.

www.taxrates.com

The Electronic Federal Tax Payment System, is a tax payment system provided free by the U.S. Department of Treasury. Pay federal taxes electronically via the Internet or phone 24/7.

Businesses and Individuals can pay all their federal taxes using EFTPS. Individuals can pay their quarterly 1040ES estimated taxes electronically using EFTPS, and they can make payments weekly, monthly, or quarterly. Both business and individual payments can be scheduled in advance.

EFTPS is …

Before you can pay these liabilities, you must have an agency name associated with each liability. Usually these agencies are tax agencies, but they may also be a bank or an insurance company. To set up the agency names, enter the agency name in the “Agency for (Payroll Item)” window of the Payroll Wizard for the payroll items you use to track payroll liabilities.

Assets that are very liquid are shown on the balance sheet as current assets. Current assets are assets that are expected to be converted to cash in 12 months or less. Those assets with convertibility exceeding twelve months are considered to be illiquid and are categorized as fixed or long-term assets.

Assets = Liabilities + Owners’ Equity

This equation is also the framework for keeping track of money as it flows in and out of your company. Starting with the first penny you earn, you’ll record in a general ledger each and every transaction using a double-entry system of debits and credits. Assets get recorded on the top or the left side of the balance sheet; liabilities and owners’ equity are recorded on the bottom or the right side of the balance sheet.

The information on each company’s general ledger is unique to that business; however, all companies classify their general ledger accounts as assets, liabilities or owners’ equity. Businesses use more specific accounts within each classification, for example, “current assets” or “long-term liabilities,” to organize and track their finances.

Assets
An asset is anything of value that your company owns — including cash. Assets get recorded on the balance sheet in terms of their dollar values. Remember, even if you used credit to purchase an asset, you still own it. Its full dollar value gets recorded on one side of the balance sheet as an asset, and the amount you owe gets recorded on the other side of the balance sheet as a liability. There are several types of assets:

• Current assets. These are assets with dollar amounts that continually change, for example, cash, accounts receivable, inventory or raw materials your company uses to make a product. They are listed on the balance sheet in order of their liquidity, or how fast they can be converted into cash.

• Investments. Companies, like individuals, can own securities such as stocks and bonds. Investments, like cash or property, are considered assets.

• Capital assets. Think of capital assets, also called plant assets, as permanent things your company owns. Land, buildings, equipment and vehicles are common capital assets. So are things like computers, furniture and appliances, as long as they remain for use within your business and are not items you sell.

• Intangible assets. Patents, copyrights and other nonmaterial assets that have value are referred to as intangible.