Notebook Solutions
Notebook Solutions is one of the most innovative and fastest growing Accounting firms offering finan
23/04/2024
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18/12/2020
As the year ends, Entrepreneurs and Business owners meet to review their financial performance and as well plan for the coming year with Budgets and supporting Key Performance Indicators. However, much as this works it has become more critical to use more innovative and technological solutions to enhance the accuracy and reliability of the plans/ Budgets.
Doing year end financial statements to evaluate the profit made in the year is good, but more important is the ability of the business to evaluate critically what the financial statements represent by bringing out ratios, trends and more analytical cash flow statements to influence preparation of Budgets.
Notebook Solutions is offering up to 30% to interpret your financial statements with Ratios, Trends and prepare your Budgets for 2021. Our service include quarterly Budgets review and evaluation for management purposes. We offer tailored cloud solutions for your business. Call Now!
12/01/2019
Sometimes, when a person has not filed a tax return in a while,MRA will prepare a tax return based on the information they have available. It is called a substitute for a tax return or an assessment. MRA does this so they can assess tax and begin collection activities.
For example, suppose Frank is a self-employed graphic designer. He works for various companies as an independent contractor, and they send him withholding tax certificates together with a Cheque to report the income paid to him and how much has been deducted as tax credit. Frank forgot to file his 2013 and 2014 tax returns (he was really busy those years). Eventually, the computers at MRA noticed Frank had not yet filed for those two years. What the computers do is they pull all the tax document /account and withholding tax paid on his to estimate his income tax.
Then the computer mailed him a letter saying, essentially, based on what we know so far, here's how much tax you owe. All MRA wants, it seems, is the tax money. Just how do we go about solving this problem?
We turned to Our tax Mathews D. Kapito. He's a tax professional who specializes in filing late tax returns.
"It's in the client's best interest to file an original return," Mathew says. Now, let's try to be a little more precise. An individual faced with this situation has two possible courses of action they can take:
They can petition the Tax Court, which must be done within 90 days of receiving their statutory notice of deficiency.
Or they can file an original tax return.
It's usually better to just go ahead and file an original tax return. The reason, according to Mathew, is that the original tax return could be filed, processed and the client will receive any refund money due to them within the same amount of time as it takes to get an appearance before the Tax Court.
MRA gives people 30 days from the date of the letter to take one of the following actions:
Send in a signed, completed tax return;
Send in a signed and dated Consent to Assessment and Collection form; or
Send in a statement explaining that the person isn't required to file a tax return (and why).
After the Assessment Letter is the Statutory Notice of Deficiency
If a person does not respond to the assessment letter within 30 days, MRA mails out a second letter. This second letter is sent by certified mail, which requires that the person sign to receive the letter. This second letter is called the Statutory Notice of Deficiency.
When MRA mails this notice of deficiency letter when they are prepared to act as if their proposed tax assessment (detailed in the first letter) is correct, and they are prepared to begin collecting any unpaid tax, penalties, and interest.
Be sure to read a notice of deficiency carefully. This letter advises the person of his or her right to dispute the assessment in Tax Court.
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Glyn Jones Road
Blantyre
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| Monday | 08:00 - 17:00 |
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| Wednesday | 08:00 - 17:00 |
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| Saturday | 09:00 - 15:00 |
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