What is a "tax year?"

A tax year is the annual period used for keeping tax records and reporting income. For individual taxpayers, the tax year is the same as the calendar year (from January 1st to December 31st). Most businesses also use the calendar year.

However, a business can alternatively choose a fiscal year as its tax year. A fiscal year is any 12-month period that ends on the last day of any month other than December. There are some instances, such as seasonal businesses, where it may make sense for a business to choose a fiscal year instead of a calendar year.

Texas Comptroller announces sales tax amnesty program

The Texas Tax Amnesty Program provides delinquent businesses with relief from penalties and interest on tax due. Tax Amnesty will run from May 1, 2018, through June 29, 2018. It applies to periods prior to Jan. 1, 2018 and only includes liabilities that have not been previously identified as due by the Comptroller.

The purpose of the tax amnesty program is to encourage voluntary reporting by:

● businesses who do not have a Texas Sales and Use Tax Permit, or are not registered for a tax or fee administered by the Comptroller’s office; and

● businesses who have a permit, but may have under-reported or owe additional taxes or fees.

If you are unsure whether your business is required to collect sales tax, please contact us and consult with our tax professionals for assistance.

SIGNS OF IDENTITY THEFT

Tax-related identity theft occurs when someone uses your stolen Social Security number or Employer Identification Number to file a tax return claiming a fraudulent refund. Individuals and businesses can be victims of identity theft.

Be alert for the following signs of identity theft:

● You receive an IRS notice that doesn’t relate to anything you submitted.

● The IRS rejects your e-filed return or extension to file request, saying they already have one with the same identification number.

● IRS records indicate you received wages or other income from an employer for whom you did not work.