Have you thought about using direct deposit for your tax refund? Here are some benefits to consider. First it makes receiving your tax refund much quicker. The refund is the most efficiently received when you electronically file and select direct deposit. Second it is secure, the funds go directly to the account you specify and there is no chance of it getting lost in the mail. It is easy to provide your preparer with the bank information and then double check to make sure the bottom of the … [Read more...]
Suggestions for Selecting a Tax Return Preparer
This is the time that everybody is looking to get their returns filed, so I thought I would give you some suggestions for selecting a tax return preparer. Check the person's qualifications — First check to see that they have a Preparer Tax Identification Number (PTIN). This is a number the IRS has assigned to preparers who are register to file returns. Also check to see if the preparer has a license that requires continuing education such as a CPA, Registered Agent, or do they belong to … [Read more...]
Are you passive or non-passive in regards to the K-1 you receive?
Are you passive or non-passive in regards to the K-1 you receive? First of all, why is it important to know which you are? Making this determination can determine if a loss is allowed or if it is a suspended loss. It also determines if the income is subject to the Net Investment Income Tax. Depending on your tax situation this determination can change your tax due and you should prepare for the effect it has on your tax when you become involved in an entity that you receive a K-1 from. Now … [Read more...]
Year End Tax Planning
Is there some year end tax planning you can do? Have you talked with your accountant regarding changes in employments, income, or your household? There may be ways you can save on your taxes and there are several reasons why now is a good time to call your accountant. Estimates: If you are one of the many who pay estimated taxes now is a good time to discuss changes in your income and get a good idea if your estimates will cover your tax or if you should save more back to cover the … [Read more...]
What to do if You Receive a Tax Notice
When I have an initial meeting with clients I try to stress what to do if you receive a tax notice. Many times I will receive the tax information to prepare a return and a tax notice will be included that was either never addressed or was just paid. While the IRS website does give some guidance on what to do with a notice at https://www.irs.gov/Individuals/Understanding-Your-IRS-Notice-or-Letter; I always recommend you send them as soon as you get them to your tax professional. In my case I … [Read more...]
Extended Tax Deadline
The extended tax deadline for individuals is quickly approaching. The deadline is October 15. I thought this would be a good time to remind you (if you have not filed yet) items that you will need in order to have your tax return prepared. I typically run into clients missing the easy items at this point. Some of my clients get so involved in working to get their business or rental information together that they forget to include all or part of the tax forms they were sent in January. These … [Read more...]
Possible Taxable Events to Discuss with Your Accountant
Now that the major tax rush is over most individuals won't see or speak with their tax accountant until they are ready to prepare their 2015 tax return. However, there are some taxable events though that you should discuss with your tax accountant throughout the year. Some of those items include: 1. A change in your retirement planning 2. Selling investments such as stocks 3. Purchasing or Selling Real Property such as your home, rental property, farm land, or other investment … [Read more...]
