FREQUENTLY ASKED QUESTIONS [FAQ]
I can assist you with any of the following situations.
I haven’t filed my tax returns for more than one year. What should I do?
It’s best to get current, one year at a time. The tax agencies, IRS and State Franchise Tax Board want to see that you’re not evading taxes and are in the process of following the tax laws.
What if I owe taxes and can’t afford to pay?
This is more common than you might imagine. For this very reason, both the IRS and State have installment plans to make monthly payments – even up to 6 years. In more extreme situations, there is an opportunity to file for an “offer in compromise” and request a greatly reduced modification to the amount of tax owed.
What if I receive a notice from a tax agency that appears to be in error about taxes owed?
This is becoming more common, tax agencies have been making significant mistakes. Unfortunately, the tax payer has to contact the IRS or State to clear up the matter. You will need the notice and a copy of your tax return and/or other records. You may even want to request a free “transcript” online to see what adjustments the tax agency may have made.
Should I be concerned with having bookkeeping done monthly for my business?
Yes, bookkeeping is essential to evaluate your business and is necessary to file your annual tax returns. I refer you to my BOOKKEEPING page for details
Should I remain an independent contractor or a self-employed owner of my business?
It will be valuable to review the options of a business structure such as an LLC, partnership or corporation which may save you substantially in tax deductions. They also provide legal protection against personal losses if you were sued.
I have an S corporation and have heard that I must pay myself a salary. Is this true and do I need to be concerned?
Absolutely! I have experience with several clients who have had others recommend and set up an S corporation for them. However, they were not informed what that entails. One can lose their tax benefits without salary compliance. Also, one must keep separate bank accounts for a corporation and not “commingle” personal and business funds.
If I won’t have my tax documents in time to file my tax returns, or I haven’t completed my bookkeeping, can I postpone the due date?
Yes. Business returns due March 15 and personal returns due April 15 can file for a 6 month extension, which must be filed by the original due date.