FREQUENTLY ASKED QUESTIONS
How do you determine your fees?
Fees are based on the number of forms involved and the amount of work required to complete a tax return or assignment.
Does electronic filing increase your likelihood of being audited?
The IRS uses a computer scoring model to judge mathematically whether your deductions are high in relationship to your income. All manually filed tax returns are converted to the same media as electronic filed tax returns. The type of filing a tax return will have no bearing or wether you are audited or not.
If we get audited will you help in preparation for the audit?
Yes, we get several inquiries per year from clients who are having all or part of their tax return audited. We help our clients get ready for the audit. Some audit only require correspondence with the IRS via mail. We will also go to the IRS or state audits for our clients.
Should we wait until tax preparation time to contact you as our CPA?
No, complicated tax questions come up during the year. It is much better to send a question to your tax preparer when an issue occurs than to inform them of it after the fact. We want to work with you to insure that you make decisions that make economic sense, help save you tax dollars and help prevent you from making bad tax decisions before the fact.
I have some credit card debt. It is a good idea to cash in a pension, IRA or other tax deferred account to help pay off credit card debt?
This is almost NEVER a good idea. If you are less than 59 and 1/2 years old, you will pay a 10% non-deductible penalty over and above regular taxes when you cash in a pension, IRA or other tax deferred account. Sometimes, you can pay as much as 40% in taxes and penalties on these early withdrawals. Credit card debt rarely exceeds 18% interest. We suggest that you look for other methods to consolidate and pay down credit card balances.