Q. How many years back can the IRS audit my Taxes?
A. Generally 3 years from the date you filed your return. However, there is a 6 year rule if you understated your income by more than 25%. There is no time limit if no return or fraudulent return has been filed.
Q. What happens if I can’t file my return by the due date?
A. An extension of time should be properly prepared and submitted to the IRS.
Q. I need a copy of my prior year’s tax return. How can I obtain a copy?
A. You can request a transcript of your return to the IRS free of charge and this usually takes about 10 days from the date you requested it, or you can file form 4506 with the IRS to get a copy. There is a fee associated with this form and it could take up to 60 days to receive the return.
Q. Can you service clients outside of Florida?
A. Yes we can. We use a tax software that allows us to prepare returns in all states.
Q. When is my tax return considered late?
A. You should postmark the tax return by the due date in order to be considered on time.
Q. Do I need to bring my information in person to have my taxes prepared?
A. We encourage our clients to come in for an initial meeting. However, with technology nowadays it is not necessary. In fact many of our clients use e-mail or regular mail to get their information to us.
Q. I’m an independent contractor and I did not receive a form 1099. Do I have to report that income on my return?
A. Yes you do! It is taxable income and you have to report it whether or not you receive a 1099 form.
Q. Do you work with start-up companies?
A. Yes we do. We can guide you through the necessary governmental forms and provide a variety of resources to help your business grow and succeed.
Q. What could happen if I’m supposed to make estimated payments and I forget to make one?
A. If you forget to pay your estimated quarterly taxes, you may owe an underpayment penalty to the IRS. You might be able to avoid the underpayment penalty if it is less than $1,000.00. Example: if you end up owning $5,000 total and only paid $4,500 over the course of the year, you’re safe because $500 is less than $1,000.