Frequently Asked Questions

Preparing for your tax appointment involves organizing all the necessary documentation and information your tax professional will need to accurately prepare and file your taxes.

Here’s a checklist to help you get ready:

1. Personal Information:
   • Bring your government-issued photo ID.
   • Have your Social Security number or tax ID number. If you’re filing jointly or have dependents, you’ll need theirs as well.
2. Income Documentation:
   • W-2 forms from all your employers.
   • 1099 forms if you’re self-employed, received interest, dividends, retirement distributions, or government payments.
     Income records from any other sources like rental property, investments, or foreign income.
3. Expense Records:
   • Receipts for any tax-deductible expenses such as educational expenses, childcare, or medical bills.
   • Records of contributions to IRAs, HSAs, or other tax-deferred accounts.
   • Mileage logs and receipts for business travel.
   • Records of home office expenses if you’re eligible for a home office deduction.
   • Property tax bills and mortgage interest statements.
4. Previous Year’s Tax Return:
   • Copy of last year’s tax return to help the preparer see what credits and deductions you previously had.
5. Bank Account Information:
   • Routing and account numbers for direct deposit of your refund or electronic payment of taxes due.
6. Proof of Health Insurance:
   • Forms 1095-A, B, or C, Health Insurance Marketplace statements, or other proof of insurance.
7. Educational Expenses:
   • Forms 1098-T from educational institutions, and records of any scholarships or fellowships.
8. Charitable Donations:
   • Receipts for charitable donations, both monetary and non-monetary.
9. Tax Credits:
   • Documentation that supports eligibility for credits like the Child Tax Credit, Earned Income Tax Credit, etc.
10. Investment Information:
    • Records of stock sales, dividend income, and contributions to or distributions from investment accounts.
11. Other Miscellaneous Information:
    • Any letters or notices you received from the IRS or state tax office.
    • Records of federal, state, or local taxes already paid including quarterly estimated taxes.
    • Detailed information about any business income and expenses if applicable.

Remember to compile these documents ahead of your appointment and review them for accuracy. It might also be useful to write down any questions you want to ask your tax advisor. Lastly, if there were any major life changes such as marriage, divorce, a new child, or a change in income, make sure to discuss these with your tax preparer as they can have significant tax implications.

The tax filing deadline can vary for individuals and businesses:

For individuals, the regular tax filing deadline is typically April 15. If April 15 falls on a weekend or a legal holiday, the deadline is moved to the next business day.

For businesses, the tax filing deadline depends on the organization’s structure

• C Corporations: The filing deadline for C corporations is the 15th day of the fourth month following the end of their fiscal year. For C corporations operating on a calendar year, this would be April 15. If the due date falls on a weekend or holiday, it is moved to the next business day.
• S Corporations and Partnerships: The deadline for S corporations and partnerships is the 15th day of the third month after the end of their fiscal year. For those operating on a calendar year, the deadline is March 15. Again, if the due date falls on a weekend or holiday, it is moved to the next business day.

It is also important to note that businesses and individuals may apply for an extension to file their tax return, which typically extends the filing deadline by six months. However, any tax owed is still due by the original filing deadline to avoid interest and penalties.

Please verify the current year’s deadlines, as they might be subject to change due to legislation or administrative decisions by the Internal Revenue Service (IRS). Always consult the IRS website or a tax professional for the most current information.

If you miss the tax filing deadline, the consequences can vary depending on your particular tax situation:

1. If You Owe Taxes:
   • Late Filing Penalties: The IRS may impose a failure-to-file penalty, which is typically 5% of the unpaid taxes for each month or part of a month that a tax return is late, up to a maximum of 25% of your unpaid taxes.
   • Late Payment Penalties: If you don’t pay the taxes you owe by the due date, you may also face a failure-to-pay penalty, which is generally 0.5% of your unpaid taxes per month, up to 25%.
   • Interest: In addition to penalties, interest accrues on any unpaid tax from the due date of the return until the date of payment.
   • Collection Actions: If you continue to not pay, the IRS may take collection actions, such as placing a lien on your property, garnishing your wages, or levying your bank accounts.
2. If You Are Due a Refund:
   • No Penalties: There are no penalties for filing a late tax return if you are owed a refund. However, you must file a tax return within three years of the original deadline to claim your refund, or you forfeit your right to it.
3. If You Filed an Extension:
   • Extended Time: If you filed for an extension, you typically have until October 15 to file your tax return. However, the extension to file is not an extension to pay any taxes owed. Payment is still due by the original filing deadline to avoid penalties and interest.

Regardless of your tax situation, it’s usually best to resolve the matter as soon as possible to minimize any penalties and interest. Here’s what you can do:

• File as soon as you can, even if you can’t pay all the taxes you owe.
• If you cannot pay the full amount, consider payment options offered by the IRS, such as installment agreements.
• If you believe you have reasonable cause for filing or paying late, you may attach a statement to your return or communicate with the IRS to explain your situation, which they may consider when determining penalties.
• Seek the assistance of a professional tax advisor to guide you through your options and to communicate with the IRS on your behalf.

Please remember that these consequences can change and can be specific to individual circumstances, so it’s important to consult the IRS or a tax professional for the most current and personalized advice.

The length of time you should keep your tax records depends on the action, expense, or event which the document records. Here is a general guideline provided by the Internal Revenue Service (IRS):

• Three Years: Keep records for three years from the date you filed your original return or two years from the date you paid the tax, whichever is later. This includes records that support income, deductions, and credit items on your return.
• Seven Years: Keep records for seven years if you file a claim for a loss from worthless securities or bad debt deduction.
• Six Years: If you do not report income that you should report, and it is more than 25% of the gross income shown on your return, keep records for six years.
• Indefinitely: If you file a fraudulent return or do not file a return at all, keep records indefinitely.
• Four Years for Employment Records: Employment tax records should be kept for at least four years after the date that the tax becomes due or is paid, whichever is later.
• Property Records: Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. You should keep these records to figure any depreciation, amortization, or depletion deduction, as well as the gain or loss when you sell or otherwise dispose of the property.

For anything not covered by these rules, such as records on your home purchase or improvement, stocks and other investments, IRA transactions, and business records, it’s generally a good idea to keep these documents as long as they are relevant to your tax situation.

Please note that different states might have different rules and it’s always wise to check the specific requirements for your state. Also, if you’ve ever been involved in tax disputes or litigation, consult your legal or tax advisor about whether to retain your documents for a longer period.

Lastly, always refer to the IRS guidelines or consult with a tax professional for the most accurate and personalized advice.

The time it takes to receive your tax refund can vary, but there are some general guidelines provided by the IRS:

1. E-filing with Direct Deposit: If you e-file your tax return and choose direct deposit for your refund, the IRS states that most refunds are issued within 21 days of the IRS receiving your tax return. Direct deposit is the fastest option to receive your refund.
2. Paper Returns: If you file a paper return, it typically takes longer to process than an e-filed return. The IRS estimates that refunds for paper returns may take up to 6-8 weeks from the date they receive the return.
3. Additional Factors: Some tax returns may require additional review for various reasons, which can extend the processing time. This includes returns that:
   — Claim certain credits (like the Earned Income Tax Credit or Additional Child Tax Credit).
   — Are incomplete or contain errors.
   — Are impacted by identity theft or fraud.
   — Require additional review for other reasons.
4. ‘Where’s My Refund?’ Tool: You can check the status of your refund using the IRS’s “Where’s My Refund?” (https://sa.www4.irs.gov/wmr/) tool, available on the IRS website or through the IRS2Go mobile app. The tool is updated once daily and can give you insight into where your refund is in the process. To use the “Where’s My Refund?” tool, you’ll need your Social Security number or ITIN, your filing status, and the exact amount of your refund. The IRS recommends checking the status of your refund 24 hours after e-filing or four weeks after you mail your paper return.

It’s also important to ensure your tax return is accurate and complete before filing it to avoid any delays in processing and receiving your refund. If the tax season is experiencing high volumes or there are updates to tax laws, refunds may take longer than the typical time frames. Always check the latest information available on the IRS website or directly with IRS customer service for the most current refund processing times.

Yes, you can amend a tax return if you need to correct an error, include information that was not previously included, or if you have to make certain changes to your income, deductions, credits, filing status, or number of dependents.

Generally, you must file Form 1040-X within three years from the date you filed your original tax return or within two years from the date you paid the tax, whichever is later. If you filed your return early (e.g., before the April deadline), the 3-year period begins on the regular due date of the return (usually April 15).

Before you decide to amend a return, check to see if the tax agency will correct minor errors or process missing forms for you. Some issues might be resolved through a notice from the IRS, and you may not need to file an amended return. However, for major changes, an amendment is necessary. Always consult a tax professional if you need assistance with amending your tax return.

Thank you for considering our tax preparation services. For a basic individual tax return, our price starts at $200. This would cover a standard Form 1040 and state return with no additional schedules.

If your tax situation includes additional schedules, such as income from investments (Schedule D), self-employment income (Schedule C), or rental properties (Schedule E), there will be an additional charge, typically ranging from $50 to $100 per schedule, depending on complexity.

We also offer services for more complex tax needs such as business filings for S Corporations, Partnerships, or C Corporations, and these services start at $500, with final pricing based on the time required and complexity of the return.

To provide you with the most accurate quote, we offer a free initial consultation to discuss your specific tax situation. During this consultation, we can assess your needs and provide a precise fee estimate. Please feel free to contact us to schedule your consultation.