FAQs
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A – Don’t worry. People fear the IRS more than anything else. The most important thing is that there are certain time frames involved when dealing with the IRS. DO NOT AVOID IT AND PUT IT OFF. Preferably, you should contact your tax preparer (ideally, me). If it is an audit, you need to contact the examiner by the date specified. However, most letters are usually just matching letters meaning that the IRS received a 1099 reporting income under your name but they cannot locate it in your return. The most important thing is that you have 30 days from the date of the letter to respond to the IRS. So, don’t put it off. If you missed that item, then pay the tax and the penalties and interest and be done with it. However, often times, the amount has been combined and they cannot locate it. We will just need to put the information together and send a response to the IRS.
A – No, you should contact your CPA first. You cannot open your business account until you have formed the appropriate organization. Obviously, you will have startup expenses that are deductible; just keep your receipts. You can reimburse yourself once you have your company started and have an account open. It is kind of like the chicken and the egg. See my checklist for starting your business.
A – No, this is an urban legend. Most audits are decided by computers based on information filed with the Internal Revenue Service.
A – I hate to break this to you but the IRS already has your information. If you do not direct deposit your refund, you are basically giving the federal government a one-month interest free loan.
A - The speed of when you get your refund is based on how you file your return and how you elect to receive the refund. The table below is the TYPICAL refund schedule. HOWEVER, THE IRS CAN DELAY YOUR REFUND AND SO YOU SHOULD NOT RELY ON THIS TABLE.
A – No problem as the IRS has set up a system for you. When we efile your return, you can elect to have your balance due debited from your account on any date up to April 15th. If after the deadline, they will draft your account upon acceptance of your return. Alternatively, you can efile your return and send a check with a voucher to the IRS via the mail. In addition, IRS now requires paid preparers to file their returns electronically and so manual returns are a thing of the past.
Q. I owe tax, can you process the tax due via credit card?
A – Unfortunately, we cannot accept credit cards for the taxes due. However, you can contact the IRS and pay your tax due over the phone or via the internet. Here is a link to the IRS website for credit card payments.http://www.irs.gov/efile/article/0,,id=101316,00.html
A – Yes, we offer our clients the ability to pay via credit card (sorry, No AMEX) if they so desire. If you want to pay for our services via credit card, please contact us and we will send you an email to give you access to our credit card processing. We process our credit cards through ADP Payments (a division of the payroll company). In addition, we accept payments via PAYPAL.
Q. Wow, I am so happy, I have a huge refund. Thank you!
A – Don’t thank us. Actually, you should be sad because this means you gave the government an interest free loan. If you expect your income to drop or you consistently obtain large refunds, you should contact us about adjusting your payments or withholdings to lower your refund. In addition, we know investment advisors who can easily beat your 0% return you just made with the Internal Revenue Service.
A – Probably not. In most cases, an audit is an overkill for what you are really after. And as such, an audit is not a wise use of your resources. We do not believe in selling you a service you do not need. We can provide alternative services that provide you with the information you need without the high cost of an audit. Now some organizations are required by law to have an audit (either Small Business Administration or federal / state funding requirements) or you may be required to have an audit by your loan agreement and as such, we can perform that audit for you.
A – Typically, as long as you are working with the Internal Revenue Service to pay off the debt, they will work with you. If you abuse the system, then they can be very rough on the taxpayer. But there are several things that can be done. If you can pay it over time, then the IRS will allow you to set up a payment plan and have it autodrafted out of your account. As a taxpayer, you propose the payment plan by filing form 9465 with the IRS. Remember, the IRS can REJECT your payment plan. Also, if the tax liability is over $25,000, then the installment request option is not available.
If you are totally unable to pay the full amount, then you can negotiate with the IRS and file what is called an Offer In Compromise. This is a very specific area of tax representation and I can refer you to a other professionals to assist you with the Offer in Compromise.
- I received a notice from the IRS, what should I do?
- I am starting a business, should I open a bank account for my new business first?
- If I get an extension, does my chance of being audited increase?
- I don't want to direct deposit my refund. I don’t want to give the IRS my bank information.
- How fast should I get my refund?
- I owe tax, so I guess there is no reason to e-file?
- I owe tax and I don’t want to efile and give the IRS my money until April 15th.
- I owe tax, can you process the tax due via credit card?
- Can I pay your services via credit card?
- Wow, I am so happy, I have a huge refund. Thank you!
- As a business owner (or a nonprofit organization), do I need an audit?
- I owe a large amount of tax and cannot afford to pay it, what can I do?
Q. I received a notice from the IRS, what should I do?
A – Don’t worry. People fear the IRS more than anything else. The most important thing is that there are certain time frames involved when dealing with the IRS. DO NOT AVOID IT AND PUT IT OFF. Preferably, you should contact your tax preparer (ideally, me). If it is an audit, you need to contact the examiner by the date specified. However, most letters are usually just matching letters meaning that the IRS received a 1099 reporting income under your name but they cannot locate it in your return. The most important thing is that you have 30 days from the date of the letter to respond to the IRS. So, don’t put it off. If you missed that item, then pay the tax and the penalties and interest and be done with it. However, often times, the amount has been combined and they cannot locate it. We will just need to put the information together and send a response to the IRS.
Q. I am starting a business, should I open a bank account for my new business first?
A – No, you should contact your CPA first. You cannot open your business account until you have formed the appropriate organization. Obviously, you will have startup expenses that are deductible; just keep your receipts. You can reimburse yourself once you have your company started and have an account open. It is kind of like the chicken and the egg. See my checklist for starting your business.
Q. If I get an extension, does my chance of being audited increase?
A – No, this is an urban legend. Most audits are decided by computers based on information filed with the Internal Revenue Service.
Q. I don’t want to direct deposit my refund. I don’t want to give the IRS my bank information.
A – I hate to break this to you but the IRS already has your information. If you do not direct deposit your refund, you are basically giving the federal government a one-month interest free loan.
Q. How fast should I get my refund?
A - The speed of when you get your refund is based on how you file your return and how you elect to receive the refund. The table below is the TYPICAL refund schedule. HOWEVER, THE IRS CAN DELAY YOUR REFUND AND SO YOU SHOULD NOT RELY ON THIS TABLE.
| Filing Method | Refund Type | Refund Timeframe |
| E-File | Direct Deposit | Less Than 2 Weeks |
| E-File | Check | 4-5 Weeks |
| Direct Deposit | 3-4 Weeks | |
| Check | 4-6 Weeks |
Q. I owe tax, so I guess there is no reason to e-file?
A – Actually, there is. Mailed in returns are manually keyed in to the IRS computers which brings an extra human error element. E-filed returns are checked by computers prior to processing to make sure no error exists. In addition, IRS now requires paid preparers to file their returns electronically and so manual returns are a thing of the past.
Q. I owe tax and I don’t want to efile and give the IRS my money until April 15th.
A – No problem as the IRS has set up a system for you. When we efile your return, you can elect to have your balance due debited from your account on any date up to April 15th. If after the deadline, they will draft your account upon acceptance of your return. Alternatively, you can efile your return and send a check with a voucher to the IRS via the mail. In addition, IRS now requires paid preparers to file their returns electronically and so manual returns are a thing of the past.
Q. I owe tax, can you process the tax due via credit card?
A – Unfortunately, we cannot accept credit cards for the taxes due. However, you can contact the IRS and pay your tax due over the phone or via the internet. Here is a link to the IRS website for credit card payments.http://www.irs.gov/efile/article/0,,id=101316,00.html
Q. Can I pay your services via credit card?
A – Yes, we offer our clients the ability to pay via credit card (sorry, No AMEX) if they so desire. If you want to pay for our services via credit card, please contact us and we will send you an email to give you access to our credit card processing. We process our credit cards through ADP Payments (a division of the payroll company). In addition, we accept payments via PAYPAL.
Q. Wow, I am so happy, I have a huge refund. Thank you!
A – Don’t thank us. Actually, you should be sad because this means you gave the government an interest free loan. If you expect your income to drop or you consistently obtain large refunds, you should contact us about adjusting your payments or withholdings to lower your refund. In addition, we know investment advisors who can easily beat your 0% return you just made with the Internal Revenue Service.
Q. As a business owner (or a nonprofit organization), do I need an audit?
A – Probably not. In most cases, an audit is an overkill for what you are really after. And as such, an audit is not a wise use of your resources. We do not believe in selling you a service you do not need. We can provide alternative services that provide you with the information you need without the high cost of an audit. Now some organizations are required by law to have an audit (either Small Business Administration or federal / state funding requirements) or you may be required to have an audit by your loan agreement and as such, we can perform that audit for you.
Q. I owe a large amount of tax and cannot afford to pay it, what can I do?
A – Typically, as long as you are working with the Internal Revenue Service to pay off the debt, they will work with you. If you abuse the system, then they can be very rough on the taxpayer. But there are several things that can be done. If you can pay it over time, then the IRS will allow you to set up a payment plan and have it autodrafted out of your account. As a taxpayer, you propose the payment plan by filing form 9465 with the IRS. Remember, the IRS can REJECT your payment plan. Also, if the tax liability is over $25,000, then the installment request option is not available.
If you are totally unable to pay the full amount, then you can negotiate with the IRS and file what is called an Offer In Compromise. This is a very specific area of tax representation and I can refer you to a other professionals to assist you with the Offer in Compromise.