What do I do if I receive a notice from the IRS
about my taxes?
Don’t panic! The first thing to do is carefully read the notice—to determine why it was sent, what the IRS is requesting, and what they want you to do. It may be nothing of importance; it may even be a notice in your favor. After reading it you should bring it to our attention.
What do I need to bring when I am having my taxes prepared?
Following is a list of the more common items you should bring if you have them.
- Wage statements (Form W-2)
- Pension, or retirement income (Forms 1099-R)
- Dependents' Social Security numbers and dates of birth
- Last year's tax return
- Information on education expenses
- Information on the sales of stocks and/or bonds
- Self-employed business income and expenses
- Lottery and/or gambling winnings and losses
- State refund amount
- Social Security and/or unemployment income
- Income and expenses from rentals
- Record of purchase or sale of real estate
- Medical and dental expenses
- Real estate and personal property taxes
- Estimated taxes or foreign taxes paid
- Cash and non-cash charitable donations
- Mortgage or home equity loan interest paid (Form 1098)
- Unreimbursed employment-related expenses
- Job-related educational expenses
- Child care expenses and provider information And any other items that you think may be necessary for your taxes.
How do I find out about my refund?
The best way is to use the Check Your Refund link from the Resources pages of our website! To look up the status of your federal or state refund, you will need your social security number, filing status, and exact amount you’re expecting back.
There are several ways you can claim
deductions for college expenses on your tax return. They are
the tuition deduction, the HOPE credit and the Lifetime
Learning Credit. If we are preparing your return we will
determine which ones you qualify for and which one gives you
the greatest tax benefit.
What are the tax consequences of selling a
If you sell your personal residence you
can totally exclude from income up to $250,000 of gain if you
are single, or $500,000 if married, regardless of your age at
the time of the sale—if during the 5 years before the
sale you owned the home and lived in it for a total of any 24
months. The exclusion is not a one-time election; instead it is
available once every 2 years. Recent tax law has adversely
changed the handling of gains on the sale of a home if you
rented the property before you made it your personal residence.
Please contact our office if you believe this situation will
How should I keep records for my business
Keep a log in your vehicle and record
the purpose and mileage of each trip. You also need to record
the odometer readings at the beginning and end of each year, as
the IRS will ask you for total miles driven during the year.
Keep your repair bills as these normally record odometer
readings when the car is serviced.
My employer tells me I will receive a 1099. What
does this mean for my taxes?
When you receive
a 1099, it means you are considered an independent contractor.
You will not have any withholding or payroll taxes deducted
from your pay. You should keep track of all business expenses
and a journal of your mileage driven for work. If the amount
you expect to receive is substantial, you should probably be
making estimated tax payments. Please contact us if you have
any questions about this.
I owe the IRS money. What are my
If you can afford to pay the amount you owe, it should be paid. But many times that is not the case. If you cannot afford to pay, you have several options. Ignoring the IRS should not be one of them!