Tax returns in Orlando are generally filed with the IRS (Internal Revenue Service) or with the state or local tax collection agency – the Orange County Tax Collector for instance. Tax returns in Orlando are prepared using forms recommended and prescribed by the IRS or a similar taxing authority.
Federal Tax Returns Orlando
This can be classified as either tax returns or information returns. Though, the term tax return is used to shed light on both the afore-mentioned terms, in a rather broad sense. In a nutshell, tax returns are reports of tax liabilities and payments which often include financial information used for computing tax. A very common example of a federal tax form is the IRS “Form 1040”.
A tax return Orlando contains essential information to facilitate the taxation authority in checking up on the taxpayer’s calculations. It can also determine the amount of tax owed if the taxpayer doesn’t need to calculate the amount owing.
By comparison, an information return is generally a declaration by an individual, such as a third party, providing economic information pertaining to one or more likely taxpayers. They are also used to transmit information about income, receipts and matters that could affect tax liabilities. For instance, Form W-2 and Form 1099 are used to report the income of an employer, broker or say, an independent contractor, pays to a taxpayer. An employer, company or party which has paid income to a taxpayer is required to file the relevant information return straight to the IRS. This copy is also sent directly to the payee; it allows the IRS to make certain that taxpayers report income correctly.
Amended Tax Return Orlando
The purpose behind filing an amended return with the IRS is to make sure that any potential errors on a previous income tax return, are corrected. What happens is, since the taxpayer does not need to file an amended return if he/she makes certain math or computational errors, the IRS can make the necessary corrections. For individuals, Form 1040X is used to file amended returns.
Federal Income Taxes Orlando
The IRS may ask individuals to file Federal income tax returns, who are identified under a certain code. Individuals receiving more than the statutory minimum amount of gross income must file under this code. The standard Orlando tax return for individuals is Form 1040. This form has variations, in addition to supplemental forms, such as the 1040EZ and 1040A Forms.
It must be noted that US citizens having a gross income higher than a specified amount, are required by law to file Federal income tax returns. Gross income includes all kinds of income, whether it comes from a legitimate or illegitimate business. Sale of illegal drugs or weapons for instance, is taxable.
Many individuals find the process of filing out tax returns cumbersome, often more so than paying taxes themselves. Certain companies offer free and paid options in a bid to cut down on all the labor involved in preparing tax returns in Orlando. Also good to know is if a taxpayer comes across a mistake on a previously filed income tax return, he/she can always file corrections with Form 1040X.
If you need more information about our, Orlando accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.