Federal income tax filing
INTRODUCTION:
In a federal state, the entire country is delineated into several provinces each of them has independent administration but the key fields like legislations, defence, foreign policies, financial matters rest in the hand of the federal administration . The provincial governments do not have any say in such matters. USA and Canada are the federal republics. As such, the taxation laws in these countries rests in the hands of the federal administrations of these countries. Likewise other countries, the income taxes are levied on various classes of people such as self-employed, salaried persons, business entrepreneurs, big corporate etc . The income tax rates as well as exemption limits are constantly amended by the federal administrations. In USA, The income tax filings can be done only by online . All the individuals or corporates, who falls in the income tax net, can file their income taxes according to the latest federal income tax laws of the year 2006.
ONliNE TAX FIliNGS:
This is the most popular type of filing tax returns because
of less time, money and hassles involved in this process . In USA, there are
several online tax consultants who assist the income tax payees in filing their
tax returns through their own designated websites . However, they charge nominal
fees from those individuals for this service.
Below given are brief details about some online tax
consultants :
a) ONliNE TAX BRAIN:
This is an online tax consultant .At online tax brain, income tax payers can file their pending year income taxes as well as the current income taxes online . There are different types of online tax forms on the website of the tax brain which are approved by the US Department of Revenue . Income tax payers can download appropriate tax forms from the companyÃs website that suits their requirements. At TaxBrain.com, users can find forms in simplest spreadsheets. The most common form for filing online federal taxes is 1040 EZ. The price of this form is 19.95 US dollars. If users wishes to make some changes that they have done on this forms, then they can download a new form 1040X free of cost . The price of the forms intended for filing state income taxes starts from $19.95.
b) HBS ONliNE SERVICES:
This is another online-based income tax (IT) consultant. It is situated in the Maryland province of the United States . The HBS Consultants provides IT consultancy services to the individuals, corporate & ; small business entrepreneurs. The tax payers can file their taxes (Federal or State) through the advanced online income tax software called Complete Tax at nominal processing fees . The tax payers at HBS online tax system can file their current as well as their previous income taxes. Besides they can also claim refunds under tax benefits offered by internal revenue services (IRS) Department, USA for certain categories such as ex-military personnel, Senior Citizens etc . The most common types of forms that taxpayers can download from complete Tax for filing their individual federal income taxes are Forms 1040, 1040A and 1040EZ . The forms that corporate and small business entrepreneurs can use for filing their income tax returns are forms 2106 and 2210. The taxpayers need not worry about the rate of income taxes s/he has to pay because at Complete Tax , there is an automatic tax calculator, which calculates the entire taxes that is to be paid by the tax payers from the inputs given by them in their respective forms . The most important feature of HBS online tax system is that it uses the most simplified process of tax filings.
C) FREE ONliNE TAX FIliNGS:
Besides the paid online tax programs, there are many tax programs run by the Internal revenue Department, USA as well as respective provincial governments, which can be used by the tax payers free of costs . The department of Revenue, Colorado offers its residents following options for filing their federal as well as state taxes online or electronically :
c.1) FREE E-FIliNG:
These are free online tax programs . They are www.netfile.co.us and www.revenue.state.co.us/TPS_Dir/wrap.asp?incl=telefile. The first program is those especially for individuals and Small business owners who want to file their tax returns online . The second one is intended for those taxpayers who want to pay their taxes through their telephones . However, these free programs are only for paying state taxes. To pay the federal taxes, there is a separate online program . There are complete listings of various tax programs in this site, which are run either directly by IRS or by the approved tax consultants . Most of the online tax programs for filing federal income tax returns are offered at the minimum charges . The provincial government of Colorado is offering this online program to its residents since 1984 . The key features of all the above tax programs are that they are simple to use, the income tax payers can use most of paid online tax programs for filing their state and federal income taxes simultaneously, they can claim refunds if they fall under the exemption categories, these programs can be used anywhere any time, there is 24 hours online help which taxpayers can use if they face any difficulties in tax filings . The latest income tax forms of the year 2006 are 104 & 104X for filing individual income tax returns and 112 C, 1120, 1120 S and 112X for corporate income taxes . The income tax payers can pay their taxes online through Pay pal, online wire transfers or Credit/Debit Cards . However, those using telefile program can pay their taxes only through Credit/Debit Cards or bank accounts .
d) DIRECT TAX DEPOSITS:
This is the traditional way of paying federal as well as state income taxes by the taxpayers . Under this program, individual taxpayer provides the IRS or the respective provincial administration his/her bank account no., Accounts type (Savings/Current) and account no . So that if they do have any refunds claims, the money is sent directly into his/her bankÃs account. However, if the refunds is not transferred electronically then the refund is sent by cheque/DD to the individual taxpayer by mail.
CONCLUSION:
No doubt, online tax filings are mandatory in the federal states like USA, Canada and Australia. The online tax filing was initiated by the United States first in the year 1983. There are different classifications of the income tax payers according to their annual incomes, sources of incomes, exempted categories under the income tax schedules of the federal governments. Also income taxes slabs are amended every year and the income tax payers must pay their federal and state income taxes according to the latest income tax schedules. Also tax forms are changed from time to time. Therefore, it is advised by the federal governments to its citizens to file income tax returns with the help of qualified & approved income tax consultants. ax forms are changed from time to time. Therefore, it is advised by the federal governments to its citizens to file income tax returns with the help of qualified & approved income tax consultants.
Other Articles
