FAQs
What is a CPA?
Licensed accounting professionals, called Certified Public Accountants (CPAs) prepare, evaluate, and attest to the accuracy and completeness of financial statements and related information. The term "public" typically refers to third-party reliance on the integrity of the financial information being presented. Investors, creditors, regulators, and employers all use financial information for decision making and therefore the accuracy and completeness of that information is of the utmost importance. Only CPAs can sign off on public company financial statements. Some CPAs specialize in tax preparation, planning, and conflict resolution. Only CPAs, Attorneys, and Enrolled Agents have unlimited rights to represent you before the IRS.
What are quarterly estimates?
Taxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments. If the amount of income tax withheld from your salary is not enough, or if you receive income from being self-employed or from investments, you may have to make estimated tax payments. These payments should be calculated quarterly based on your projected income tax liability for the year and then remitted by the applicable deadlines.
How do extensions work?
Tax return extensions offer you extra time beyond the standard April 15th deadline to file your taxes, giving you until October 15th to file. This extension is especially useful if you need more time to gather all necessary documents or if your tax situation is complex and requires additional preparation. However, it's crucial to remember that filing an extension doesn't extend the time to pay any taxes owed. You're still required to estimate your tax liability and make any payments by the original deadline to avoid penalties and interest charges. An extension can be granted by submitting IRS Form 4868 either electronically or by mail before the April 15th deadline. A state equivalent form is commonly required as well for state income tax filers.
Do you provide investment advice or financial planning services?
No however I commonly work alongside clients' financial advisors and attorneys by commenting on the tax consequences of decisions, preparing filings as necessary, and advising on best practices for tax and financial reporting purposes.
I received a letter from the IRS, should I hire someone to help with this?
Being examined by the IRS or being unable to pay an IRS tax assessment are serious matters that would require the experience and training of a professional representative. It's highly recommended that you may appoint only persons who are eligible to practice before the IRS (CPAs, Attorneys, and Enrolled Agents) as your legal representative. This individual would have access to your tax records and be able to communicate with the IRS directly on your behalf. This sort of practice before the IRS is governed by federal regulations.
I made a mistake when filing my tax return, can you file an amended return for me?
Yes, I can file a Form 1040-X or state equivalent even if I did not file your original tax return. Note that this option may not always be available to you depending on the relevant statute of limitations as well as any notices received from the IRS. I can evaluate your situation and recommend the best course of action.
I received a substantial lump sum payment from a bonus, severance, IRA distribution, or stock sale. Can you tell me what will happen when I file my tax return for this year?
Yes, I can provide you with a federal and state tax projection which will show an estimated refund or amount due to the taxing authorities. This can mitigate surprises when filing your tax return and help in planning your personal cash needs.