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www.taxservicedc.comHAVE YOU RECEIVED A NOTICE FROM THE IRS OR THE STATE?PROFESSIONAL TAX PREPARATION INDIVIDUALS AND BUSINESSES Professional Tax Preparation by licensed, registered and bonded preparerALL PAST YEARS AVAILABLE!Filing an Amended Tax ReturnWhat should you do if you already filed your federal tax return and then discover a mistake? Don’t worry; you have a chance to fix errors by filing an amended tax return. 1. Use Form 1040X, Amended U.S. Individual Income Tax Return, to file an amended tax return. An amended return cannot be e-filed. You must file it on paper.2. You should consider filing an amended tax return if there is a change in your filing status, income, deductions or credits.3. You normally do not need to file an amended return to correct math errors. The IRS will automatically make those changes for you. Also, do not file an amended return because you forgot to attach tax forms, such as W-2s or schedules. The IRS normally will send a request asking for those.4. Generally, you must file Form 1040X within three years from the date you filed your original tax return or within two years of the date you paid the tax, whichever is later. Be sure to enter the year of the return you are amending at the top of Form 1040X.5. If you are amending more than one tax return, prepare a 1040X for each return and mail them to the IRS in separate envelopes. You will find the appropriate IRS address to mail your return to in the Form 1040X instructions.6. If your changes involve the need for another schedule or form, you must attach that schedule or form to the amended return.7. If you are filing an amended tax return to claim an additional refund, wait until you have received your original tax refund before filing Form 1040X. Amended returns take up to 12 weeks to process. You may cash your original refund check while waiting for the additional refund.8. If you owe additional taxes with Form 1040X, file it and pay the tax as soon as possible to minimize interest and penalties.9. You can track the status of your amended tax return three weeks after you file with the IRS’s new tool called, ‘Where’s My Amended Return?’ The automated tool is available on IRS.gov and by phone at 866-464-2050. The online and phone tools are available in English and Spanish. You can track the status of your amended return for the current year and up to three prior years.10. To use either ‘Where’s My Amended Return’ tool, just enter your taxpayer identification number (usually your Social Security number), date of birth and zip code. If you have filed amended returns for more than one year, you can select each year individually to check the status of each. If you use the tool by phone, you will not need to call a different IRS phone number unless the tool tells you to do so. The IRS has some advice for taxpayers who missed the tax filing deadline. File as soon as possible. If you owe federal income tax, you should file and pay as soon as you can to minimize any penalty and interest charges. There is no penalty for filing a late return if you are due a refund. Penalties and interest may be due. If you missed the April 15 deadline, you may have to pay penalties and interest. The IRS may charge penalties for late filing and for late payment. The law generally does not allow a waiver of interest charges. However, the IRS will consider a reduction of these penalties if you can show a reasonable cause for being late. E-file is your best option. IRS e-file programs are available through Oct. 15. E-file is the easiest, safest and most accurate way to file. With e-file, you will receive confirmation that the IRS has received your tax return. If you e-file and are due a refund, the IRS will normally issue it within 21 days. Pay as much as you can. If you owe tax but can’t pay it all at once, you should pay as much as you can when you file your tax return. Pay the remaining balance due as soon as possible to minimize penalties and interest charges. Installment Agreements are available. If you need more time to pay your federal income taxes, you can request a payment agreement with the IRS. Apply online using the IRS Online Payment Agreement Application tool or file Form 9465, Installment Agreement Request. Refunds may be waiting. If you’re due a refund, you should file as soon as possible to get it. Even if you are not required to file, you may be entitled to a refund. This could apply if you had taxes withheld from your wages, or you qualify for certain tax credits. If you don’t file your return within three years, you could forfeit your right to the refund.It's Tax Season: The Office Is Open Monday-Sunday From 9am-9pmAs a small business owner you need to understand how taxes are going to affect you and your business. It is important that you file properly, avoid audits, and claim the right tax deductions.Here are a few tips that may ease the burden of tax preparation and to help you get ready to do your tax return.1. Keep Good Records: Proper record-keeping year-round is the first step to ensuring your taxes are filed accurately and that you have the paperwork you need to back-up your deduction claims should you be audited. 2. Understand Your Deductions: What small business deductions can you take? Do you have the documentation and original receipts to back them up? Tax credits and deductions change each year.3. Utilize the Small Business Jobs Act Tax Provisions: The Small Business Jobs Act of 2010 signed into law by President Obama has over 17 tax provisions decreasing the tax burdens for small businesses--several of these provisions can be taken advantage of during this year's tax season. Utilizing these provisions will provide great savings for your business. 4. Remember the tax credits within the Affordable Care Act: These tax credits will allow small businesses to cover up to 35 percent of the premiums a small business pays to cover its workers. In 2014, the rate will increase to 50 percent.5. Avoid Common Audit Traps: It is very important to be aware of potential red flags and act on them before the IRS does:•Classifying Employees as Independent Contractors -- Independent contractors and employees are not the same, and it's important to understand the difference. In the eyes of the IRS, misclassification can be seen as an attempt to avoid payroll taxes, and non-compliance can bring penalties and back taxes.•Home Office Deduction -- This deduction is very specific and not all home-based businesses will qualify. Likewise, if you run your business from a commercial location and claim the home office deduction, you might trigger some interest from the IRS. Know how to determine if you are eligible to claim it, and what specific expenses you can write off. •Large Sum Miscellaneous Deductions -- If you claim a large amount of itemized deductions relative to your income, the IRS will get suspicious. Likewise, if you bucket a large amount of miscellaneous expenses, you may raise eyebrows. Be specific and label every deduction. 6. Keep Business and Personal Expenses SeparateThe IRS scrutinizes personal expenses that may have been claimed as a business expense, such as the use of a business vehicle for personal use. Be diligent about keeping good records. Maintain a separate bank and credit card account for your business.In addition, to the possible dividend tax increase, investors would pay more in capital gains taxes in the event the Bush taxes expire (again, from a current long-term capital gains tax rate of 15 percent up to a maximum rate of 20 percent).What do these tax-law changes mean to investors who rely on equities for a significant portion of their income? First, we believe that it is worthwhile noting that stocks can provide long-term growth and so some equity exposure in an income-generating portfolio is both necessary and desirable to help returns stay ahead of inflation. Second, the extent to which your holdings are likely to be affected if these tax increases take place will depend on your individual circumstances. In our view investors facing the greatest level of risk are those investors with a higher-than-average reliance on dividends from their equity holdings to meet their income needs. In our experience, this type of investor may be holding large concentrations of stock at a low cost basis--the price at which the stock was originally purchased is significantly below the price at which they could sell that stock today--typically resulting from the sale of a business, retirement from a corporate executive position or an inheritance. For such investors the risk of complacency is very real.If you don't qualify for the IRS Offer in Compromise program, a Payment Plan may be the way to resolve your problem. Setting up a payment plan with the IRS gives you a little more time to pay off your tax debts.Unfortunately, penalties and interest will continue to be charged on your outstanding balance as you pay the debt off. You are required by law to pay the interest on your tax debt.The Internal Revenue has just over $1 billion in tax refunds for approximately one million individuals who still need to file an income tax return for the year 2011.The IRS keeps copies of W-2 forms, 1099′s and other income-related documents. You can request copies of these tax documents by ordering an income transcript from the IRS. Either download or fill out Form 4506-T and take this to your local IRS office The IRS District of Columbia 77 K STREET N. E. WASHINGTON, DC 20002 Open from 8:30AM -4:30 PM (they'll print out the transcript for you), or call the IRS at 1-800-908-9946 and ask that the transcript be mailed to you. Your tax professional can also order an income transcript for you that can be delivered by fax.Use the income transcript as a starting point for finding your original documents. You can contract previous employers, brokers, and other financial institutions to obtain copies of your original tax documents. Original documents can contain more information compared to what's found on the income transcript. For example, the IRS doesn't show any state-related tax withholdings on its transcripts. Similarly, if your income transcript shows you sold some investments, you may want to contact your broker to obtain more detailed account history information.This year have an experienced financial professional prepare your return. Not just to ensure you take advantage of all the deductions you are entitled to for 2010, but to review your financial position and tax situation and make sure that you positioned to save money on your taxes in 2011 as well. The last few years have brought significant changes in tax laws-are you sure that you're positioned to take advantage of all of them? In many cases my rates are less than the H&R Block. I can e-file your return and have the IRS deposit your refund directly into your account. Call or e-mail today for an appointment and fee quote. You'll be glad you did.What If I Don't File Voluntarily? The IRS is taking enforcement steps for those who repeatedly choose not to comply with the law. IRS employees will prepare returns when taxpayers do not file. The returns prepared by the IRS might not give credit for deductions and exemptions a taxpayer may be entitled to receive. Bills will be sent to those taxpayers for the tax due, plus penalties and interest. The IRS and the state don’t know if you have dependents or other credits. People who repeatedly don't comply with the law are subject to additional enforcement measures.María Elena López, MSA, MBATEL: (202)882-0935Tel: (202)526-4889Fax: 202)882-0935Mobile: (202)489-7054WHAT TO DO IF YOU RECEIVE AN IRS NOTICE!It's a moment many taxpayers read. A letter arrives from the IRS -- and it's not a refund check. Don't panic; many of these letters can be dealt with simply and painlessly. Each year, the IRS sends millions of letters and notices to taxpayers to request payment of taxes, notify them of a change to their account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return. Each letter and notice offers specific instructions on what you are asked to do to satisfy the inquiry. If you receive a correction notice, you should review the correspondence and compare it with the information on your return. Â• Agree? If you agree with the correction to your account, usually no reply is necessary unless a payment is due. Â• Disagree? If you do not agree with the correction the IRS made, it is important that you respond as requested. Write to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right-hand corner of the notice. Have a copy of your tax return and the correspondence available when you call to help us respond to your inquiry. Be sure to keep copies of any correspondence with your records.This year have an experienced financial professional prepare your return. Not just to ensure you take advantage of all the deductions you are entitled to for 2012, but to review your financial position and tax situation and make sure that you positioned to save money on your taxes in 2013 as well. The last few years have brought significant changes in tax laws-are you sure that you're positioned to take advantage of all of them? In many cases my rates are less than the H&R Block. I can e-file your return and have the IRS deposit your refund directly into your account. Call or e-mail today for an appointment and fee quote. You'll be glad you did.I prepare:- Individual Income Tax Returns- Corporate (C & S) Income Tax Returns- Partnership Returns- LLC Returns- Non-Profit Returns- Trust Returns- Quarterly Estimated Tax Payments- Year-End Tax Planning- Tax Advice- IRS Audit Representation- Notices from IRS & Franchise Tax BoardORIf you:Bought or sold a home or investment property-or are planning to buy,Got married or divorced-or are planning to do one or the other,Started a family,Are in school or have a dependent in school,Changed jobs,Have a side business or self-employment income,Started or experienced substantial growth in your own business,Have been receiving big refunds or paying penalties for underpayments,Haven't filed taxes for a few years and want to get back on track,Or simply haven't met with a financial professional in the last few years to make sure you are on the right track, you owe it to yourself to do it right this year.Did your accountant make a mistake your tax return?A couple of years ago I reviewed my clients' prior year tax return prepared by their accountant and I found that their accountant made a mistake on their tax return. Please bring a copy of your last year's tax return; we'll be glad to look over your tax return for you to ensure you take advantage of all the deductions that you are entitled to.Business Owners-Self EmployedMost of my clients are self-employed, operating Sole Proprietorships, LLCs or partnerships. Some are working at their own businesses full-time while others have full-time jobs and are building their own business evenings and weekends. They have found that working with me has saved money. I have helped them identify overlooked deductions, alternative tax treatments, opportunities to use tax deferred savings plans more effectively and provided general business advice that has saved them real money. I then look at their projections and help them plan for estimated tax payments this year to ensure that they avoid penalties in 2011, while maximizing their current cash flow.Home OwnersMany are new homeowners who are able to itemize for the first time and want to ensure that they catch everything the first year. Some plan to go back to Turbo Tax Ã‚Â™ next year, but want a little advice this year-just to make sure. I take the time to get a feel for their financial situation and walk them through the deductions for which they are eligible. I look at their projected income for 2014 and provide them with a new W-4 that takes their new tax situation into account and enables them take more money home each paycheck instead of waiting for a big refund at the end of the year. Why let the IRS keep your money all year when it can earn interest in your bank account or help you pay down your debt faster?I have evening and weekend appointments available.All clients will enjoy affordable one on one service from knowledgeable hardworking professionals. Let us help you organize your finances, and avoid the costly mistakes that can affect your bottom line. We will be your point people for all things financial, allowing more free time to focus on your family, business etc. . . .Business Owners:Having trouble reaching your accountants when you need them? Not getting the personal attention or quality of service you deserve? Do you feel that you are paying too much of your hard earned money for poor results? Let us show you how beneficial having a qualified Accountant can be for your business. You will receive better quality service & SAVE $$$.Services:We offer tax preparation including Federal, State & Local for Individual, Corporation, Partnership and Business. We provide full-service accounting. For new business setup. Incorporations and new business advisory services offered to put your business on the path to success. Our services also include year round tax planning, as well as compliance and auditing.Professional TAX returns in 3 business days!Preparing your own income tax return can be a task that leaves you with more questions than answers. According to a study released by the US Government's General Accounting Office last year, most taxpayers (77% of 71 million taxpayers) believe they benefited from using a professional tax preparer.Whether we like it or not, today's tax laws are so complicated that filing a relatively simple return can be confusing. It is just too easy to overlook deductions and credits to which you are entitled. Even if you use a computer software program there's no substitute for the assistance of an experienced tax professional.Maria Elena Lopez, LLC Bookkeeping, Income Tax and Legal Document Preparation Services can help you with all of your Bookkeeping and Income Tax needs. We specialize in tax preparation for individuals and small businesses. We prepare computerized federal and state tax returns for all (50) states E-file. Your tax returns are prepared according to current tax laws and rulings. We will also handle tax audits, reassessments and any other tax inquiries on your behalf.Maximize your refund.Get the deductions you deserve.Avoid tax hassles, this is not software, a tax professional will do it all for you.No waiting in line for hours, we go to your home, office or can process online.Convenience: At any time, all week including evenings and weekends.Get your Refund Fast -- avoid snail mail -- E-file today.Save Money Flat low pricing.We do not just process returns; we also take the time to evaluate, analyze your tax information, and identify the correct approach to reporting your income while minimizing your current tax burden. Minimum prices for 2010 tax return ranges from $135 -- 450 based on complexity of the return. You will receive a written estimate specific to your return prior to the commencement of services.Our staff will show you how to adjust your payroll withholding to get more money back each week. Why give the IRS an interest free loan for up to 16 months.Books a Mess: No Problem!
March 1 on Oodle