If you have a question which are not in this section, please contact us.

A: No. Filing an extension only extends the time you have to file your tax return. It does not extend the time you have to pay your tax liability. There are various options available for paying your tax liability however. IRS now accepts credit cards (there is a fee) and Installment agreements (there is a fee). You should speak with a tax professional for further guidance.

A: You should file the returns you haven’t filed. You’ll pay interest and probably a penalty (unless you’ve got a really good reason). As long as you come clean voluntarily, you should avoid any truly serious trouble. By the way, there’s no statute of limitations on non-filed returns. Therefore, if you don’t file returns, interest and penalties continue to accrue.

A: Generally speaking, the following are recommended periods of retention for various documents:

7 Years

Tax Returns (uncomplicated), W-2's, 1099's, Cancelled checks supporting tax deductions, Bank deposit slips, Bank statements, Charitable contribution documentation, Credit card statements, Receipts, diaries, or logs pertaining to tax returns.

Ownership Period + 7 Years

Investment purchase and sales slips, Dividend reinvestment records, Year-end brokerage statements, Mutual fund annual statements, Investment property purchase documents, Home purchase documents, Home improvement receipts and cancelled checks, Loan paperwork.

Permanent

Tax Returns (complicated), Retirement plan annual reports, IRA annual reports, IRA nondeductible contributions (Form 8606), Divorce documents, Estate planning documents.

A: There are many advantages to having your tax return prepared professionally. Since your return will be filed electronically, you may receive any potentional refund much quicker. Also, professional tax preparers are use to working with tax returns and are familiar with many IRS procedures that you may not be. Professional tax preparers may be able to help reduce your tax liability.

A: You will need to bring all the relevant tax documents that will be needed to complete your tax return. These could include, but may not be limited to:

* W-2's * Childcare records
* 1099-B's * Medical Expense records
* 1099-DIV's * Mortgage/Closing documents
* 1099-G's * Home Improvement documents
*1099-INT's * Proof of Charitable Contributions
*1099-MISC's * Receipts for Non-Reimbursed Business Expenses
*1099-R's * Self-Employment Income/Expense records

You should also bring your previous two years tax returns so that the preparer can see how you have filed your returns in the past.

A: Fees can vary depending on the complexity of the tax return. A tax return that involves nothing more than one W-2 will be less expensive than a return that involves income from a rental property. The more work and forms that are required to complete you tax return, the more the charge will be.

Tax Tips Small Business

  • Thinking of Selling Your Corporation?

    Carefully review your options before making a decision

    When it come time to sell your corporation, you have two options. You can either sell the corporation stock or have the corporation sell the assets and distribute the proceeds. The tax implications of the two sales are very different. If you choose to sell the stock, you are the seller. The corporation is not affected by the transaction. The new owner steps into your shoes as the shareholder and takes over the existing corporation. If your share of the proceeds exceeds your basis in the stock, you'll have a capital gain to report on Schedule D.

    Read more ...

Small Business Quick Tip

  • Personal Assets to a Business

    If you have contributed personal assets, such as a computer or vehicle to your business, the lower of the fair market value or your cost basis of these assets qualifies as a business deduction, subject to depreciation limitations, beginning with the date of conversion.
Saturday, 21st July 2018
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Tax Tips Personal

  • Overlooked Employee Business Expenses

    Don't miss out on deductions you are allowed to take

    Unreimbursed employee business expenses are allowed as a miscellaneous itemized deduction provided they exceed two percent of your adjusted gross income when combined with all your other miscellaneous expenses.

    Read more ...

Personal Quick Tip

  • Combat Pay

    Military personnel may elect to treat combat pay that is excluded from gross income as earned income in determining both eligibility for the earned income tax credit and the amount of that credit.