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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:
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.
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.
Tips for placing a value on your business
There are several reasons why you should know the value of your business. if you are planning to sell your business, the general rule is that you should sell it for fair market value. In many instances the term "fair market value" is somewhat ambiguous. In the simplest sense, fair market value is what a willing buyer would pay a willing seller, with each party knowing all the pertinent facts.Read more ...
|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.|
New rules require diligent recordkeeping
Keeping the receipts from your charitable contributions just became more of a priority. Starting January 2007, you will not be allowed to deduct charitable contributions of any amount unless you have the proof. What does this mean for you? Starting in 2007,
|Beginning January 1, 2017, the standard mileage rates for the use of a car (including vans, pickups, or panel trucks) are: