Frequently Asked Questions
What if I get a notice from the IRS?
Notices from the IRS can become an issue if not addressed. There are various types of notices you might receive from the IRS. These notices could require you to amend your return. However, the best thing to do is bring the notice in and weíll help you as much as we can.
What should I bring to your office for tax preparation?
Generally, if you are a previous client then we will have all your personal information available. However, hereís a list of the more common items you should bring if you have them. Wage statements (Form W-2), retirement income (Forms 1099-R), unemployment compensation, educational expenses either for you or your dependents. Dependents' Social Security numbers and dates of birth, if you are a new client bring you past return. If you have rental income then we need the expenses and income related to the properties. Child care expenses are often a neglected subject.
How long do I keep my records and tax returns?
Generally three (3) years from the date the return was filed or the date the return was required to be filed, whichever is later. It is recommended that you keep these records longer if possible.
What is an amended return, and when should I file one?
An amended return is where corrections are made to your return. These corrections can be due to an omission on your part or just a simple math error. You should file an amended return if there is a significant difference between the original return and the new changes. As of now, an amended return cannot be electronically filed, and any expected refunds will take longer to receive than the original return (2-3 months, according to the IRS). Generally to claim a refund, your amended return must be filed within 3 years from the date of your original return or within 2 years from the date you paid the tax, whichever is later.
I didnít file an income tax last year. Is that a problem?
The best thing to do is make a determination if you were required to file. It is possible you may be owed a refund. On the other hand you may owe the IRS. Certainly the best thing to do is to have this issued checked out.
I get paid with a 1099. Is that right?
Yes, if you are a contractor then this is correct. This means that you have to pay your own social security at a higher rate than an employee. 1099 income is eligible to have expenses related to the work performed deducted from your gross income. Filing a 1099 has its benefits.
What if I owe the IRS money?
First of all donít panic. If you the IRS they want their dinero. If you can pay up by all means do so. However, if you canít then you can make arrangements via an installment agreement. For severe cases you can file an offer in compromise. This is where you simply donít have the money. The IRS will make a determination, after considering several factors and may reduce your debt by settling for less than what you owe.