Frequently Asked QuestionsEveryone has questions and when it comes to taxes we want to be the firm to answer them. Below is a list of the most frequently asked questions by our clients. If you have a question that is not addressed or if you would like more detail about a answer below, please contact us. Do I need a Certified Public Accountant? A CPA is a individual who has passed a rigorous licensing exam. A CPA must adhere to a strict standard of ethics and is required to stay current with the ever changing tax laws and regulations. A CPA is allowed to represent you should a dispute arrise with the IRS. A CPA should offer tax strategy over just entering data, allowing you to save money on your returns now and in the future. What do I need to bring to my first appointment? You will need to bring your previous year’s completed tax return (form 1040) and a completed questionnaire. To obtain the questionnaire please contact our office at 817-656-3397. Where is my refund? The answer to this question could change over time, so we would recommend going to the IRS website. Please click on the link below to learn more about refunds. www.irs.gov/individuals/article/0,,id=96596,00.html How long do I need to keep my tax returns and the records supporting my returns? The rule of thumb, in most cases, is to keep your supporting tax records for six years and your tax returns indefinitely. In general, except cases of fraud and substantial understatements of income, the IRS can only asses tax for a year within three years after the return for that year was filed, unless the file date was before the due date, then it is three years after the due date. The assessment period is extended to six years if more than 25% of gross income is omitted from a return. If no return was filed for a tax year, the IRS can assess tax at any time even beyond three to six years. Records relating to property also may need to be kept longer than 3-6 years as well. When do I need an appraisal on a charitable contribution? If you donate an item (or a group of similar items) of property worth more than $5,000 dollars, certain appraisal requirements apply. You must recieve the "qualified appraisal" before your tax return is due. After receiving a qualified appraisal you will attach a "appraisal summary" to the first tax return on which the dedcution is claimed. Some charitable contributions higher than this amount, may require other statements. Including: A "statemen of Value" issued by the IRS to substantiate the value of your contribution and a copy of the "qualified appraisal". Some exceptions to the qualified appraisal requirement apply to the following:
Also, only a partially completed appraisal summary must be attached to the tax return for contributions of:
What is a qualified appraisal? A "qualified appraisal" is a complex and detailed document. It must be prepared and signed by a qualified appraiser. What is an appraisal summary? An "appraisal summary" is a summary of a qualified appraisal made on Form 8283 and attached to the donor's return. Do I need to make quarterly estimated tax payments? Most people who receive the bulk of thier income in the form of wages satisfy these payment requirements through the tax withheld by their employer from thier paycheck. However, if you're self-employed, have unearned income not subject to withholding, or your withholding doesn't otherwise cover the tax liability shown on your income tax return you may need to make estimated tax payments. What are the quarterly "due dates" for estimated payments? Individuals must pay 25% of a "required annual payment" by the following dates listed below to avoid an underpayment penalty.
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