1. Personal & Corporate Taxation Seminar Presented by: Nyarayi Chibanda, Jennifer Piepenbrink

2. Personal Taxes- Income Tax What you need Income Tax PreperationIncome Tax Preperation W-2 form Yearly gross income Taxes for state and federal government Medicare Social security 401K contributions

3. Personal Taxes- Income Tax What you need 1099 Form Anything that is not recorded as wages, salary or tips Interest paid from bank accounts Deductions Donations to non-profit organizations Some medical bills can be deductions

4. Personal Taxes- Income Tax Auditing Types of auditing Random selection Document matching Related examinations Process of being audited Consequences of the audited found guilty

5. Personal Taxes- Income Tax Choose the form that fits you best Full year legal residents of Wisconsin Students earning only wages, salary Students who are not legal residents of Wisconsin Filing income tax online E-filing is the most accurate and easiest method of filing tax returns Refunds are available in as few as five business days Refunds can be deposited directly into a savings or checking account

6. Personal Taxes- Income Tax Options for filing your taxes www.irs.gov www.revenue.wi.gov Tax professionals Volunteer Income Tax Assistance (VITA) Free tax preparation for low and moderate income individuals VITA also helps disabled and those who have limited ability speaking English

7. Personal Taxes- Income Tax Tax Brackets Families generally file Form 1A. Tax Bracket Couples Filing Jointly Tax BracketMarginal Tax Rate $0+4.60% $14,090+6.15% $28,180+6.50% $100,000+6.50% $211,330+6.75% $310,210+6.75%

8. Personal Taxes- Income Tax Tax Brackets Filing as single, generally Form 1 is appropriate. Tax Bracket Single Filers Tax BracketMarginal Tax Rate $0+4.60% $10,570+6.15% $21,130+6.50% $100,000+6.50% $158,500+6.75% $232,660+7.75%

9. Corporate Taxation Gross income versus net income (profits) Double Taxation: The income is taxed as a separate legal entity The shareholders’ dividends are taxed on an income basis.

10. Let’s get started Sign up for an Employer Identification Number on www.irs.gov State Regulations NOTE: A new EIN at the change of ownership/ structure

11. Tax Preparation Software The initial e-filing application phase Publication 4162 Validation

12. E-Registration Process What is e-services? Is a package of products designed for tax professionals and taxpayers Includes: Registration IRS e-file Application e-filing tools & products Registered User Portal (RUP)

13. How does a corporation register? Responsible Official (RO) Designated User (DU) Go to www.IRS.gov

18. IRS E-Services for Large Corporations A corporation assets that equal to $10 million 250 returns filed annually MeF Internet XML (1120 Corporate Tax Return)

25. Completing the e-filing process Electronic Transmitter Identification Number (ETIN) Electronic Filing Identification Number (EFIN) 5 digit PIN

26. Helpful Reminders 6 month extension period Profit made overseas is taxable Due date: 15 th of the 3 rd month after close of the company’s fiscal year

27. THANK YOU Questions? Feedback? Speak to us after class or Email us at: Nyarayi.Chibanda@mail.wlc.edu or Jennifer.Piepenbrink@mail.wlc.edu