Bharmal and Associates, Inc.

TAX SERVICES

Payroll Tax Returns

We Prepare and File Federal and State Payroll tax returns on quarterly and annual basis.

We also make payroll tax deposits on timely basis.

Sales Tax Returns

We Prepare State Sales Tax Returns on a monthly, quarterly or an annual basis.

We also prepare out of state sales tax returns

IRS and State/Local Representation

Our firm represents clients before all government agencies to resolve any tax matters, including audits and collections

Income Tax Return Preparation

Preparing your own income tax return can be a task that leaves you with more questions than answers. According to a study released by the US Government's General Accounting Office last year, most taxpayers (77% of 71 million taxpayers) believe they benefited from using a professional tax preparer.

Whether we like it or not, today's tax laws are so complicated that filing a relatively simple return can be confusing. It is just too easy to overlook deductions and credits to which you are entitled. Even if you use a computer software program there's no substitute for the assistance of an experienced tax professional.

We Prepare and File Income tax returns for Individuals, Partnerships, Corporations, Exempt Organizations and Trusts. We also prepare Out of State and back year’s tax returns

Here's what you get...

  • Your tax return will be checked and rechecked by our computer software identifying potential problems the IRS may look at more closely and reviewing the math to limit IRS contacts.
     
  • Your tax return can be filed electronically so you will get a refund back quicker.
     
  • Our staff will show you how to adjust your payroll withholding to get more money back each week. Why give the IRS an interest free loan for up to 16 months.
     
  • We will show you potential deductions to limit your tax liability for next year. In addition, we will give you a sheet of commonly overlooked deductions to limit the following year's tax liability.

Books a Mess or Receipts in Shoe Box: No Problem!


If you own a small business and haven't kept up your bookkeeping, don't worry. We can help you. We'll prepare your bookkeeping for the year, prepare a full Schedule C, as well as your personal income tax return. Then we'll help you set up an easy system that allows you to keep your books in tip-top shape next year.

If you'd like to receive more information about our Tax Preparation Service, please complete this form.

Tax Planning

Planning is the key to successfully and legally reducing your tax liability. We go beyond tax compliance and proactively recommend tax saving strategies to maximize your after-tax income.

We make it a priority to enhance our mastery of the current tax law, complex tax code, and new tax regulations by attending frequent tax seminars.

Businesses and individuals pay the lowest amount of taxes allowable by law because we continually look for ways to minimize your taxes throughout the year, not just at the end of the year.

We recommend Tax Saving Strategies that help you...

  • grow and preserve assets by keeping Uncle Sam out of your pockets.
  • defer income so you can keep your money now and pay less taxes later.
  • reduce taxes on your income so you keep more of what you make.
  • reduce taxes on your estate so your family keeps more of what you've made.
  • reduce taxes on your gifts so you can give more.
  • reduce taxes on your investments so you can grow your wealth faster.
  • reduce taxes on your retirement distributions so you can retire in style.

Here's just a few of the Tax Saving Strategies we use...

  • Splitting income among several family members or legal entities in order to get more of the income taxed in lower bracket.
  • Shifting income or expenses from one year to another in order to have them fall where it will be taxed at a lower rate.
  • Deferring tax liabilities through certain investment choices such as pension plans, contributions and other similar plans.
  • Using certain investments to produce income that is tax exempt from either federal or state or both taxing entities.
  • Finding tax deductions by structuring your money to pay for things you enjoy, such as a vacation home.

Remember, we work for you not for the IRS. Many of our clients save many times the fee in reduced tax liability through careful planning and legitimate tax strategies.

If you'd like to receive more information about our Tax Planning Service, please complete this form.

Tax Problems & Their Solutions

Are you having problems with the IRS?

We're here to help you resolve your tax problems and put an end to the misery that the IRS can put you through. We pride ourselves on being very efficient, affordable, and of course, extremely discrete. The IRS problems will not just go away by themselves; they just keep getting worse with penalties and interest being added each day.

If you owe the IRS, you have a very serious problem. It may take the IRS several years to catch up to you, but they're relentless and have no mercy in collecting all the money that is owed. When the collection process starts, they'll make your life miserable and literally ruin all aspects of your life.

Please take a look through our complete IRS problem resolution services by clicking on the links below.

IRS Problems

IRS Solutions

Tax Information for Foreign Students
 

If you are a foreign student in the United States, your tax liability will be determined by several factors.  Firstly, what is your residency status. Secondly, what is the source of your income and should it be taxed.  Finally, is there a relevant tax treaty between the United States and your country of origin.  These three factors will determine your federal tax liability.

 

Residency

 

The first thing you need to determine is whether or not you are a resident for taxation purposes.  While legal residency may overlap with residency for tax purposes, they are not necessarily the same.  It is important for you to determine whether you are a resident for tax purposes, whether or not you are a legal resident. 

 

There are two major criteria that determine residency: the “green card” test, and the substantial presence test (SPT).

If you have a “green card” or acquire one while you are in the United States, your residency begins the day you enter the country or your green card is valid.

 

The substantial presence test is a bit more complicated.  You will have met the substantial presence test for residency if you have resided in the United States for at least 31 days in the current year and 183 days overall.  The rules for SPT are quite complicated because they can extend over three years and there are conditions under which some days may be exempt.  Being an exempt individual does not mean that you are exempt from paying federal taxes; rather, it means that you are exempt from counting particular days toward the SPT.  In this case, you may have resided in the United States for a year or more and remain a non-resident for tax purposes.

 

Some of the most common reasons for you to be a non-resident are the rules governing foreign students.  If you hold an F, J, Q, or M visa and have complied with all the rules governing your visa, you will be considered exempt for tax purposes.  As long as you are a student, you may keep this status for five years.  You should file a 1040NR and Form 8843 with the IRS. If you meet the requirements for SPT, you need to file a 1040 for the non-exempt days of the current tax year.  Resident and Non-resident status becomes more complicated if you have not been in the country for the entire tax year and if you have a spouse or dependents. 

 

Taxation for Non-Resident Foreign Students

 

If you do not meet the criteria for either the “green card” test or the SPT test, then you will have to file a 1040NR.  Usually, you will only be taxed on income earned in the United States.  For students, there are three categories of income that are relevant: personal service income, scholarship income, and investment income. Personal income refers to the income you receive from being a teaching assistant, research assistant, instructor, and/or researcher.  This income is taxed at a graduated rate with some exceptions.  If you receive a scholarship or fellowship, this is also taxed at a graduated rate; however, certain expenses can be deducted.  For instance, you may be able to deduct tuition and expenses for books that are necessary for your course of study.  Investment income is taxed at a flat rate of 30% for non-resident students.  However, this can be a little tricky.  Certain investment income such as interest received on a savings account in the United States is not considered taxable, while other forms of investment income, such as dividends, are considered taxable income.

 

Treaty Implications

 

Finally, your tax liability could be affected by one of the treaties between the United States and your country of origin.   The rules governing federal taxes differ widely depending upon the country of origin of the student.  The United States has over fifty different tax treaties with differing provisions, depending upon the country of origin.  Therefore, the tax liability of one student may vary from the tax liability of another student.  In 2006, a revision of a tax law stated that up to $9,000 of personal service income could be exempted from US taxation.  In addition, separate treaties provide even greater benefits for non-resident students.  India, for example, has one of the most generous treaties, which provides for all of its students in the US to receive the same tax benefits as resident students.  Other treaties have different levels of benefits for different amounts of time.  It is important to find the relevant treaty governing your specific situation. 

Get a Free Consultation with our tax specialist by completing the form below.