FAQ

How much should I have withheld out of my paycheck?
It depends on a number of factors; your financial personality, whether or not you work at more than one job, if you are self-employed, or are married and have a working spouse. Are you disciplined enough to set aside some of your paycheck today and save it to pay your taxes next year? It is also depends on your prior year tax liability and avoiding an underpayment penalty situation.

We can tell you how to avoid the underpayment penalty, and we can compute approximately how much you will get back or have to pay in.

How long should I keep my tax records?
The Internal Revenue Service suggests that you retain all pertinent information for three years from the due date of the return. However, we suggest that you should maintain your tax information for six years or longer depending upon whether or not you have investments or own real estate. Business retention records will vary depending upon the specific record. Contact us for further guidance.
How do I inquire about my Income Tax Refund?
The Internal Revenue Service has a toll free number to handle your refund inquiries. Please have your social security number, your filing status, and the whole dollar amount of your refund at hand. The IRS requests that you wait at least four to six weeks before calling. The toll free number is 1-800-829-1040. Or, you may check “Where’s My Refund” at www.irs.gov.
If the IRS audits me, can a CPA, accountant or paid tax preparer represent me?
A CPA has demonstrated professional competence by passing a rigorous examination and meeting high standards of education. In addition, they must meet strict continuing education requirements and adhere to a stringent set of ethical standards.

CPAs are authorized to represent taxpayers in an IRS audit, as are attorneys and other professionals known as enrolled agents (EA).

When is the best time to take my tax information to my accountant?
As soon as you are sure that you have all of your tax information. It is best to have your information, if possible, to your accountant by mid-March or earlier. Although financial institutions are supposed to provide your information to you by January 31st, it is sometimes the case that the initial information may be inaccurate and corrected information will subsequently be issued.
I received a tax notice. What should I do with it?
Taxpayers should consider consulting their accountant immediately upon receipt of a tax notice. Most notices have a deadline for response, therefore, they should be responded to promptly. Remember, if a balance is due, the IRS does collect interest and penalties.
How do I apply for a Federal Employer Identification Number (FEIN)?
Again, it depends on whether or not you actually need one depending upon the type of entity that you have formed and its business purpose. It is best to consult with your accountant and have the firm apply on your behalf.
What is the difference between a 'C' Corporation and an 'S' Corporation?
Generally, the difference between a C Corporation and an S Corporation is the manner in which the corporation is taxed. To determine which entity offers the greatest tax advantages, taxation at the corporate level must be evaluated, as well as the effects on the shareholder’s individual tax return. Factors to consider include dividend taxation, top tax rates, bottom tax rates, corporate earnings, and fringe benefits. Consult your accountant to further determine which entity would be beneficial to you. If you and your accountant decide that an S Corporation is best for you, there are Federal election forms that need to be timely filed. Missing the deadline could be an expensive proposition.
If I pay personal expenses out of business account, can I write them off?
You would not write the amounts off as expenses. Only business related expenses can be deducted from your business income. It is generally recommended that you not mix business and personal accounts. It simply makes it easier to keep records.
Are business gifts deductible?
If you give business gifts in the course of your trade or business, you can deduct the cost subject to special limits and rules. In general, you can deduct no more than $25 for business gifts you give directly or indirectly to any one person during your tax year. Exceptions may apply. Consult your accountant.
I need a form from the IRS
You can get, (download) most IRS forms from the IRS web site. The address is http://www.irs.gov/formspubs/index.html.
I know that I owe IRS money and I don't have it. Should I wait to file until I have gathered the funds?
No! There is a 5% per month penalty for late filing (up to 25% of the amount of tax owed) and a .5% per month penalty for late paying. The late filing penalty is easily avoided by filing the tax return itself or by filing an extension, even if you cannot pay the amount due. It is important to understand that many states have different rules regarding these penalties.
Do you provide support for QuickBooks?
We have experience with many versions of QuickBooks (in addition to many other software packages) and can answer your day-to-day needs. Please contact us to schedule an appointment to discuss your software needs.
How much do you charge to prepare and file my taxes?
Our fees are based on the challenges that you and/or your business are facing, the condition of your records and the complexity of the return. More challenging and complex issues, as well as poor record keeping, increase the time it takes to prepare your return and therefore increase our fees. Please contact us to schedule an appointment to review your tax situation.