Tax Preparation & Tax Planning

Tax Preparation

Are you anxious about filing your own tax return? Even a simple return may require multiple forms. The instructions often evoke more questions that answers. While a computer software program may help, there is no substitute for the quality of service and advice you’ll receive from an experienced tax professional.

There are many events that occur during the year that can affect your tax situation. Preparation of your tax return involves summarizing transactions and events that occurred during the prior year. In most situations, treatment is firmly established at the time the transaction occurs. However, negative tax effects can be avoided by proper planning.

Please contact us in advance if you have questions about the tax effects of a transaction or event, including the following:
Pension or IRA distributions
Sale or purchase of a residence or other real estate
Significant change in income or deductions
Retirement
Job change
Notice from IRS or other revenue department
Marriage
Divorce or separation
Attainment of age 59½ or 70½
Self-employment
Sale or purchase of a business
Charitable contributions of property in excess of $5,000

Please contact us or schedule an appointment with us early on so we can be sure to help you!

Tax Forms

  • Base Federal Forms:Form 1040-EZ
  • Form 1040 for Individual, Married Filing Jointly, Married Filing Separately, Head of Household, Qualifying Widow(er) with dependent child.
  • Form 1065 for Partnership
  • For 1120-S/1120-C for Corporations
  • *Additional Forms
  • Schedule A– Itemized Deductions
  • Schedule C– Business
  • Schedule D– Investment Gains & Losses
  • Schedule E– Rental Income/ Royalties
  • Earned Income Credit
  • Form 6251 for Alternative Minimum Tax

Tax Preparation Checklist

What you will be requested to provide:

❑ All Forms W-2 (wages), 1099-INT (interest), 1099-DIV (dividends), 1099-B (proceeds from broker or barter transactions), 1099‑R (pensions and IRA distributions), Schedules K-1 from partnerships, S corporations, estates and trusts, and other income reporting statements, including all copies provided from the payer.

❑ Form 1095-A (for health insurance purchased through a public exchange), Form 1095-B (for health insurance purchased outside of a public exchange), or Form 1095-C (for employer-provided health insurance coverage).

❑ If you are a new client, provide a picture I.D.

❑ If you are a new client, provide copies of last year’s tax returns.

❑ The completed Individual Income Tax Organizer. Note: If you choose not to fill out the organizer, you must at least answer the “Yes” or “No” questions under “Questions — All Taxpayers.”
❑ Copy of the closing statement if you bought or sold real estate.

❑ Mileage figures for any automobile expenses claimed, including total mileage, commuting mileage, and business mileage.

❑ Detail of estimated tax payments made, if any.

❑ Income and deductions categorized on a separate sheet for business or rental activities.

❑ List of itemized deductions categorized on a separate sheet for medical, taxes, interest, charitable, and miscellaneous deductions.

❑ Copy of all acknowledgement letters received from charitable organizations for contributions made in 2015.

If you would like to submit documents electronically we can set up a link to a secure drop box that is encrypted for security purposes. Please inquire about this feature we offer!

We will prepare your tax return based on information you provide. In the event your return is audited, you will be responsible for verifying the items reported. It is important that you review the return carefully before signing to make sure the information is correct. Unless otherwise stated, the services for preparation of your return do not include auditing, review, or any other verification or assurance.

Tax Planning

Proactive planning is the key to minimizing your tax liability. We work with businesses and individuals to pay the least amount of tax required by law. A few of the strategies that we consider include:

  • Splitting income among several family members or legal entities to take advantage of lower income tax brackets
  • Shifting income or expenses from one year to another when it can yield a lower tax rate
  • Deferring or eliminating tax liability through use of tax-advantaged investment vehicles
  • Tracking all expenses eligible for itemized deduction
  • Taking advantage of tax credits

IRS Representation

An IRS audit can be intimidating and complex process. If you or your business face an IRS audit, we can bring to bear years of experience in dealing with tax matters and IRS audit procedures to ensure that you are properly represented when dealing with the IRS and other tax authorities.

Amended Returns

If you discover an error after filing your return, you may need to amend your return. The IRS allows you to correct those errors by filing an amended tax return. If the correction results in an increase in the amount of tax you owe, it’s to your advantage to file the amendment to avoid potential interest and penalties on the underpayment.

The IRS allows you to file an amended tax return only to correct your filing status, the number of dependents you claim, your gross income and to increase or decrease the number of deductions and credits you report on your original tax return.

You have a limited amount of time to file an amended tax return; otherwise, the IRS will not accept it. This must be done by the later of three years from the original due date of the return, three years from the date you actually file if after the deadline or within two years of paying tax for that year.

When you amend your federal tax return, you may need to amend your state income tax return too. Most states calculate taxable income based on information you provide on your federal return. Therefore, any change you make to your federal return is likely to affect your state return.