Complete Small Business Services

Accounting, Bookkeeping, Payroll, and Tax services for Syracuse, Baldwinsville, Liverpool, Clay, Phoenix, Fulton, and all of Central New York ~ 315-409-0080

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FAQ

What do I do if I receive a notice from the IRS about my taxes?
Don’t panic! the first thing to do is carefully read the notice—to determine why it was sent, what the IRS is requesting, and what they want you to do. It may be nothing of importance; it may even be a notice in your favor. After reading it you should bring it to our attention.

What do I need to bring when I am having my taxes prepared?
Following is a list of the more common items you should bring if you have them. Click here for a more detailed Tax Organizer.

  • Wage statements (Form W-2)
  • Pension, or retirement income (Forms 1099-R)
  • Dependents' Social Security numbers and dates of birth
  • Last year's tax return
  • Information on education expenses
  • Information on the sales of stocks and/or bonds
  • Self-employed business income and expenses
  • Lottery and/or gambling winnings and losses
  • State refund amount
  • Social Security and/or unemployment income
  • Income and expenses from rentals
  • Record of purchase or sale of real estate
  • Medical and dental expenses
  • Real estate and personal property taxes
  • Estimated taxes or foreign taxes paid
  • Cash and non-cash charitable donations
  • Mortgage or home equity loan interest paid (Form 1098)
  • Unreimbursed employment-related expenses
  • Job-related educational expenses
  • Child care expenses and provider information And any other items that you think may be necessary for your taxes.

How do I find out about my refund?
The best way is to use the Check Your Refund link from the Resources pages of our website! To look up the status of your federal or state refund, you will need your social security number, filing status, and exact amount you’re expecting back.

What are the tax consequences of buying a home?
The main tax consequence of buying a home is that you may be able to deduct the property taxes you pay and any mortgage interest you pay. Points you pay may also be deductible. Please contact our office to determine the eligibility. Normal expenses for maintaining a home are not deductible, but you should keep records of any major expenses for repairs or improvements. I you have a taxable gain when you sell your home, these expenses may be deductible.

I haven’t been filing my tax returns what should I do?
First, you must determine if you were required to file in the years you did not file. There are many different items that could figure into this—such as your filing status, your sources of income, whether you had any tax withheld, etc. This is a link to the IRS instructions for filing requirements for 2007: http://www.irs.gov/individuals/article/0,,id=96623,00.html. If you determine you should have filed, contact us and we can handle all of your prior year filings. It is very important that you do not just continue to not file. If you owe money the penalties for not filing are high. If you are owed a refund you will lose your claim to it 3 years after the due date of the return.

Can I deduct expenses for a business run out of my home?
If you use a portion of your home for business purposes, you may be able to take a home office deduction whether you are self-employed or an employee. Expenses you may be able to deduct for business use of your home may include the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting, and repairs.

You can claim this deduction only if you use a part of your home regularly and exclusively:

  • As your principal place of business for any trade or business.
  • As a place to meet or deal with your patients, clients or customers in the normal course of your trade or business.

Generally, the amount you can deduct depends on the percentage of your home that you used for business. Your deduction will be limited if your gross income from your business is less than your total business expenses.

I owe the IRS money. What are my options?

If you can afford to pay the amount you owe, it should be paid. But many times that is not the case. If you cannot afford to pay, you have several options. Ignoring the IRS should not be one of them!

  • The first option is to enter into an installment agreement with the IRS. To do this you need to fill out Form 9465, Installment Agreement Request. This form is fairly easy to complete, but we strongly recommend that if you owe a substantial amount of money you work with us to secure your agreement.
  • The second option, which is much harder to get approved, is an offer in compromise. The IRS will be reluctant to do this if they feel you have the resources to eventually pay. You should not attempt an offer in compromise without professional help you can trust. The IRS has also issued a consumer alert, advising taxpayers to beware of promoters’ claims that tax debts can be settled for “pennies on the dollar” through the Offer in Compromise Program.

 

 

3417 Linda Lane, Baldwinsville, NY 13027

 

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