Successful Financial Future
Navigating the current accounting landscape isn’t easy. As a result, it can be difficult to find answers to your questions.
We’ve prepared answers below to some of these most commonly asked questions below, to help guide you. Don’t see one of your questions in our list? Contact us using the form at the bottom of this page.
Have Questions?
No. Timely filing an extension and then filing your return within the extended deadline will not automatically trigger an audit.
No. The extension only extends your time to file and not your time to pay. When filing an extension, it’s best to send in an estimated payment of the tax you will owe, if any. If you will be receiving a refund, no payment is necessary.
As professional return preparers, we’re required to electronically file your return unless special circumstances apply. If we do file your return by paper, we will need to retain detailed statements about why we did so. Also, filing your return electronically provides us with digital records of when your return was submitted by us and subsequently accepted by the IRS that we otherwise would not have without additional costs to you (e.g. special postage fees).
We support a variety of software platforms. If you use QuickBooks, great! We have certified QuickBooks Pro Advisors on staff. If you use something else, that works, too. We’re here to help you handle your bookkeeping in the most efficient and accurate means possible.
Direct deposit not only is convenient for your employees, it prevents you from having to write and deliver paper checks. Although there are certain employers for whom paper checks are the way to go, we generally advise taking advantage of direct deposit.
It is all a matter of the required level of assurance provided by us that your financial statements are materially correct. Audits provide the highest level of assurance among the three services. The objective of an audit is the expression of an opinion about whether your financial statements are fairly presented, in all material respects. A review engagement includes primarily applying analytical procedures to your financial data and making inquiries of management. A review engagement is substantially less in scope than an audit engagement and is conducted to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements. The objective of a compilation engagement is to apply accounting and financial reporting expertise to assist you in the presentation of financial statements, however, we are not required to verify the accuracy or completeness of the information you will provide to us.
The most common reason for needing assurance and attestation services is that a third party is requiring it. Loan covenants often stipulate the need for periodic financial reporting from an independent CPA firm. Contractors applying for licenses with the Department of Labor, Licensing and Regulation sometimes need audited, reviewed or compiled financial statements to obtain the license you desire. It can also be an effective risk management tool for business owners through providing you with quality information so that you can make informed decisions regarding your business.
Divorce can impact every aspect of your financial well-being. You will want to examine what will result from the potential changes to your income, expenses, assets, pensions, retirement accounts and property ownership. Taking stock of everything is a good start. Projecting future cash flow, debt and tax issues will further help you determine whether you can maintain your standard of living based on a proposed settlement.
The short answer is by reviewing your spouse’s activities, tax returns or other records and knowing what to look for. Although it is possible, it is very difficult to conceal assets without leaving any trace. Having an experienced professional to lead this process can greatly impact whether you are able to get to the truth.
An LLC is extremely flexible when it comes to tax treatment. You have several options on how the LLC will be taxed. By default, a single-member LLC will be taxed as a sole proprietorship and a multi-member LLC will be taxed as a partnership. Whether single-member or multi-member, your LLC has the option to be treated as a C corporation or an S corporation (with some restrictions) for federal tax purposes. Although the paperwork for electing to be treated as a corporation can be completed fairly quickly, the decision has serious tax consequences that will impact your business moving forward.
The general rule is that you must issue a Form 1099-MISC for anyone to whom you paid $600 or more in the course of your business during the year. There are exceptions that lower the dollar threshold for this requirement. Additionally, there are some entities to which you are not required to issue Forms 1099-MISC. A best practice is to get a completed Form W-9 from each of your subcontractors before remitting any payments as there are penalties for failing to properly file Forms 1099-MISC at the end of the year.
The IRS typically will not call an individual taxpayer without prior notices or other correspondence first. If you receive a threatening call from someone representing themselves as an IRS agent, you can always contact the IRS directly rather than through the number provided by the person on the phone or voice message. This way, you know that you are speaking with an IRS employee who can confirm whether or not the IRS is actually seeking payment of tax liabilities.
Yes, the IRS does offer payment plans. If you are in a position where you owe more than you can pay, you have options. Among those are Installment Agreements, Offers-in-Compromise and being placed in currently not collectible status.