When are estimated tax payments due for individuals and calendar year entities?

1. April 15
2. June 15
3. September 15
4. December 15 for calendar year corporations; January 15 for individuals

What are the dates for estimated tax payments for fiscal year entities?

1. 15th day of 4th month of your fiscal year
2. 15th day of 6th month of your fiscal year
3. 15th day of 9th month of your fiscal year
4. 15th day of 1st month after the end of your fiscal year

How do I avoid underpayment penalties?

You must have paid at least 90% of the current year’s tax or 100% of the prior year’s tax or 110% if your income is greater than $150,000 by April 15th. In calculating penalties, the IRS determines if you are in compliance at the estimated tax due dates. If you are underpaid at any of the estimate due dates, you will be charged a penalty until you are in compliance.

How can I check on my refund?

Go to www.IRS.gov and click on “Where’s My Refund” and you will need to know the following:

1. Your social security number
2. Your filing status (single, married filing joint, married filing separate, head of household, etc.)
3. Exact dollar refund shown on return

Use Form 3911 to trace a missing refund.

How long should I keep my records and my tax returns?

You should keep your records so that they are available in the event of an audit. Generally, this is 3 years from the date that you filed your return.

We recommend that you keep your tax returns for 7 years with the following exceptions:

1. If you deferred the gain from the sale of your prior residence into your current residence and you filled Form 2119. You should keep Form 2119 to provide the cost basis when you sell your current residence. Note: Only applies if you sold your prior home before May 7, 1997.
2. You should keep all gift tax returns in a permanent file.
3. In the event of an audit, the IRS usually requests copies of past returns to be furnished at the time of the audit.

What other records should I keep?

1. Purchase price of capital assets such as stocks, bonds, collectibles, etc.
2. Closing statement on the purchase of your home and any improvements to your home.
3. Closing statement on the purchase of rental property and any improvements or assets for the rental property (appliances).
4. There are different rules for property acquired by gift or bequest.

What is the statute of limitations and how does it affect my return, refunds, or balance due?

1. A refund can only be claimed within 3 years of the original due date of the return.
2. Generally, the IRS can only audit returns for 3 years after it has been filed.
3. The collection period for outstanding tax liabilities is 10 years and starts when the tax liability is finalized. A tax liability is finalized when:
   1. The return is filed with a balance due or
   2. An assessment is made during an audit of the return or
   3. A proposed assessment becomes final.

What happens when a refund expires?

It disappears and is considered an excess collection and it cannot be applied to offset a balance due on another year.

When should I keep track of my mileage?

Keeping track of your miles for business, medical, or charitable purposes could provide you with a tax deduction.

What should you expect when you use a professional to prepare your tax return?

1. A lot of questions because the better the preparer understands your tax situation, the better the preparer can find legitimate deductions.
2. Education as to what is deductible and how to minimize your tax exposure.
3. Projection or planning for the current year.

What do I need to bring to my first appointment?

You will need to bring the last 2 year’s completed tax returns. If you would like to schedule an appointment, please call our office at 817-632-2500.