Posts in category: Tax, Advisory

It’s not unusual for taxpayers to be surprised—and perhaps more than a little confused—by some of the correspondence that is received from the IRS. Here’s a case in point: Many taxpayers have been puzzled by notices they have received related to 1099 forms. For example, problems have arisen in the past surrounding notices related to Forms 1099-K (Payment Card and Third Party Network Transactions) and 1099-C (Cancellation of Debt). Those who received the notices were frequently uncertain what they meant and how they were expected to respond.

If you have received one of these notices—or any other letter—from the IRS, be sure to contact us. The Service may simply need more information, have additional tax liability or are due a refund. No matter what the situation, we can help you understand the problem and work with you to resolve it.

Are you ready for tax time? There are a couple of steps you can take now to alleviate some of the stress of filing your return. Plan to get organized early. Begin by putting together a tax folder with W-2s from your employer, 1099s for other income you may have earned, bank and other financial statements and receipts for things like medical bills and charitable donations.

Once you’ve gathered all your important paperwork, this is a good time to meet with your CPA to talk about changes in your financial situation or in tax laws that may have an effect on your return.  Having this discussion early is key to avoiding surprises at tax time and a great time to get started on planning that can potentially minimize your tax bite and strengthen your financial situation. Call us today!

There’s good news for taxpayers: A number of popular tax provisions that expired at the end of 2013 have been extended into 2014, thanks to a new tax law passed by Congress in December. That means qualified individuals will be able to claim deductions for the state and local sales taxes and some higher education costs and exclude from income any mortgage debt cancellation for 2014. Businesses will benefit from one more year of bonus depreciation and Section 179 expensing and from a research tax credit for some qualified expenses.

These are just a few examples of the provisions extended by the Tax Increase Prevention Act of 2014. If you’d like more information, or if you’re concerned that you may miss out on some these last-minute extenders, be sure to call our office today. We can help you claim all the proper credits and deductions and offer advice on minimizing your taxes going forward. Keep in mind, too, that the yearend legislation has had no effect on the Internal Revenue Service’s schedule. As a result, we’re ready to get started today on all your tax planning needs.