Our Services Archives - Page 4 of 4

28 12, 2009

Correcting Mistakes on a Tax Return

By Gabrielle Luoma| 2009-12-28T11:38:27+00:00 December 28th, 2009|Blog, Our Services, Tax|Comments Off on Correcting Mistakes on a Tax Return

Believe it or not, we’re just a few short weeks away from the start of the 2009 tax filing season. One of the biggest taxpayer concerns—after “how much will my refund be?”—is the risk of making a mistake on a tax return. It can happen to even the most meticulous filer: after sending off your e-return to the IRS or dropping it in the mail, you notice an error. After the initial flurry of panic, you can relax—your return may technically be out of your hands, but it’s not set in stone just yet. The IRS has factored in a margin of error for busy taxpayers by providing the Form 1040X. The “X-file” allows you to specify what you reported on your original return, where the error was made, and what the correct figures are. You can even use the form to add or remove dependents or change your filing status. The IRS allows you to file an amendment up to three years after the original filing date. Below are a few CPA-recommended tips for filing the Form 1040X:

14 12, 2009

Tax Records: To Shred or Not to Shred?

By Gabrielle Luoma| 2009-12-14T13:32:28+00:00 December 14th, 2009|Blog, Our Services, Tax|Comments Off on Tax Records: To Shred or Not to Shred?

As we approach the end of another calendar year, it can be tempting to clear out all those backlogged tax files and start fresh for 2010. But don’t start feeding all those old records to the shredder just yet—first, consider the following. As a general rule, CPAs recommend hanging onto the past three years’ worth of tax records. That’s equivalent to the federal government’s statute of limitations for questioning or auditing your tax information. There are a few exceptions—some states have up to four years to examine your return, and the statute can be extended or removed in cases of fraud, significant income omission, or tax evasion. But taxpayers who have filed in a timely manner and paid any outstanding taxes by the due date can confidently purge any records three years after the date the return was filed. It’s important to note that the three-year rule only applies to supporting documents and information related to your tax return. Other records, specifically those that detail capital assets, should be kept until the end of the statute period following their liquidation. Below are some examples: • Tax returns: Although supporting documentation can usually be purged after the three-year mark, it’s wise to keep the actual returns themselves. These can prove invaluable in securing a loan or applying for insurance.

7 12, 2009

Year-End Tax Planning 2009

By Gabrielle Luoma| 2009-12-07T14:03:31+00:00 December 7th, 2009|Blog, Our Services, Tax|Comments Off on Year-End Tax Planning 2009

As we head into the heart of December, it’s time to start planning year-end tax strategies. There are several ways to maximize your 2009 savings by minimizing your taxable income through smart deductions. Below are a few tips: Retirement contributions: If you haven’t already reached the limit, now is the time to max out your contribution to your corporate 401K account. If you don’t work for a company, you might also consider contributing to a traditional IRA or SEP (self-employed) IRA. Your CPA can help you identify which retirement plans must be funded before the end of 2009, and which can be funded after the New Year. New vehicle deductions: Are you planning to buy a new car, truck, motorcycle, or RV in the coming year? If you complete the purchase before the New Year, you may be eligible to write off the sales tax as a deduction, depending on the amount of your total household income. Homebuyer and homeowner credit: In 2009, legislature was passed that granted first-time home buyers up to $8,000 in tax credits. This deduction is limited to taxpayers who have not bought a home in the last three years and whose incomes are below the maximum limit. If you’re planning to purchase a home in the near future, doing so before the end of the year will increase your 2009 tax savings. In addition, current homeowners may be eligible to deduct up to $6,500 in tax credits.

17 11, 2009

6 Overlooked Tax Breaks

By Gabrielle Luoma| 2009-11-17T22:51:28+00:00 November 17th, 2009|Blog, Our Services, Tax|Comments Off on 6 Overlooked Tax Breaks

Whether you run a big corporation, a small start-up, or a busy household, your main tax concern is likely minimizing the amount you have to pay and maximizing the return you receive at the end of the year. One of the best ways to accomplish this is enlisting the services of a Certified Tax Professional, who can clue you into potential tax benefits. Below are just some of the breaks that are often overlooked by those who file their own returns: Medical expenses: If your annual medical bills add up to over 7.5% of your income, they can be written off as a tax deduction. While you can’t count portions that were paid by an insurance policy, any non-covered costs are eligible, including associated expenses like insurance premiums and mileage to and from a treatment facility. Property taxes: As of 2008, married couples filing jointly can enter a standard deduction of up to $1,000 for real estate taxes, and single homeowners can deduct up to $500—even if they don’t have enough deductions to file an itemized return on a Schedule A.

10 11, 2009

4 Tips for Getting Through an Audit…and How a CPA Can Help

By Gabrielle Luoma| 2009-11-10T16:03:27+00:00 November 10th, 2009|Blog, Our Services|Comments Off on 4 Tips for Getting Through an Audit…and How a CPA Can Help

Most business owners would rather suffer through a root canal than be subject to a tax audit. Even for those who keep meticulous records and adhere to all state and federal regulations, the auditing process can involve weeks of anxiety and tedious red tape. Without professional guidance, most taxpayers don’t have the information or the confidence to defend them against an audit. Although there’s no surefire way to bullet-proof yourself against a tax audit, a good CPA can help make the process less painful by offering helpful tips like these: 1. Keep records for at least the past three years. The IRS typically initiates audits within 18 months of a filing, but by law they have up to three years before the statute of limitations ends. By having all of your forms and receipts organized and easily accessible, you’ll greatly reduce stress in the event of an audit. When you work with a CPA, you’ll receive all of the year’s tax documents neatly packaged for your files.

30 10, 2009

Full Disclosure: What to Tell Your CPA

By Gabrielle Luoma| 2009-10-30T13:30:57+00:00 October 30th, 2009|Blog, Our Services, Uncategorized|Comments Off on Full Disclosure: What to Tell Your CPA

No business owner looks forward to the chaos of tax season. When you’re already juggling customer service, marketing, and business development, it can seem virtually impossible to make time for preparing your financials. That’s where your CPA comes in. If you think an accountant’s role is limited to preparing and filing annual tax returns, it’s time to adjust your expectations. Many of our new clients are pleasantly surprised to find out how much work we’re prepared to take off their plate. One of the biggest mistakes business owners can make is withholding information from their CPAs. While basic financial data— W2 and 1099 forms, real estate interest statements, receipts for business expenses—is important, we dig deeper to ensure a clear understanding of our clients’ businesses and long-term goals. Below are some of the most important things to convey to your tax professional before tax season:

26 10, 2009

Think You Don’t Need a CPA?

By Gabrielle Luoma| 2009-10-26T20:23:55+00:00 October 26th, 2009|Blog, Our Services|Comments Off on Think You Don’t Need a CPA?

Think Again. You wouldn’t set off on a cross-country journey without your GPS system—so why risk navigating the sometimes turbulent waters of business ownership without a qualified tax professional to guide you? Considering the proven benefits of hiring a Certified Public Accountant, it’s surprising that a significant number of business owners don’t use one. What’s stopping them? Below are a few of the most common reasons we’ve heard, along with some facts to set the record straight.

22 10, 2009

6 Questions to Ask a CPA

By Gabrielle Luoma| 2009-10-22T20:23:41+00:00 October 22nd, 2009|Blog, Our Services|Comments Off on 6 Questions to Ask a CPA

If you’re already considering hiring a Certified Public Accountant, you probably already know about the huge benefits it can bring to your business. Not only will you enjoy significant tax savings and the peace of mind that comes with accurate, compliant financials, you’ll have countless hours freed up to focus on running your company instead of crunching numbers. While the advantages of using a CPA are obvious, choosing the right tax professional isn’t quite so clear-cut. Like any other profession, each accountant has different capabilities and limitations. You’re not just hiring someone to file your tax return each April—you need a long-term partner who’s invested in the growth and success of your business all year round. To ensure a good match, here are a few key questions to ask a tax professional before trusting them with your financials: “How long have you been working in the financial industry?”