If I’m ever audited, could the IRS request returns with supporting documentation beyond the three year period?
Generally, the statute of limitations for the IRS to assess taxes on a taxpayer expires three (3) years from the due date of the return or the date on which it was filed, whichever is later. The three-year limit is doubled to six years if the IRS finds that a taxpayer omits from gross income an amount that exceeds 25 percent of the stated gross income. The IRS has no time limit when an audit pertains to assessment of tax if a return is false or fraudulent, reflects a wilful attempt to evade taxation or when no tax return at all is filed.
How does a tax extension work?
Because you must pay late payment penalties and interest on any unpaid tax after the April 15 filing deadline, when you file an extension you want to estimate your tax liability as accurately as possible. Consequently, we need as much information as possible to accurately estimate your tax liability. Extensions that are filed based upon inaccurate estimates can be ruled invalid by the IRS.
I need to reach my tax professional. What is the best way to do that?
For most of the year, the easiest way to reach your tax professional is either by calling our office or sending an email.
During tax season (roughly February 1st to April 15th), getting in touch with your tax professional may be more difficult due to a high volume of client meetings at that time. The best way to reach your tax professional is by email. When sending an email we suggest waiting 24 hours for a reply before following up with a phone call.
What does it cost to file a tax extension?
We charge an additional flat fee for each extension prepared (one for federal and one for each state). The fees will be explained when you meet with your tax professional.
You have several email addresses for your company. Which email address should I use?
If you are a client communicating with one of our tax professionals regarding a specific tax-related issue (ex. If I withdraw money from my IRA how will this impact my tax return, etc.), you will use the tax professionals email address ending with @defilippisfinancial.com. When in doubt please contact our office to obtain the correct email address.
If you are a client communicating with one of our financial advisers regarding a specific investment-related issue (ex. If you have a specific question about one of your investment accounts), you will use the financial adviser's email address ending with @ceterafs.com. When in doubt please contact our office for the correct email address.
If you need to schedule a tax appointment, confirm/change a tax appointment or communicate regarding a tax-related administrative matter (ex. change of address, etc.) you should send your email to email@example.com. This is a general mailbox for tax-related email messages only. If your message requires an immediate response please call our office.
If you need to schedule a financial appointment, confirm/change a financial appointment or communicate regarding an investment-related administrative matter (ex. change of address, etc.) you should send your email to firstname.lastname@example.org This is a general mailbox for investment-related email messages only. If your message requires an immediate response please call our office.
When should I contact your office to file my tax extension?
The earlier the better; this gives us the proper amount of time to make an accurate estimate.
I received a notice in the mail from the IRS and/or my state taxing authority. What should I do?
The first thing to do is get a copy of your notice to our office. You may fax it in, scan it and email it to our general mailbox email@example.com or drop it off. If you have taken advantage of our Prepaid Audit Service, you will not be charged for our services acting on your behalf in response to the notice(s). If you did not purchase our Prepaid Audit Service for the tax year in question, you will be charged at our normal hourly rate.
The Treasury Inspector General for Tax Administration (TIGTA) conducted a study of IRS’ AUR system (the system that triggers notices to taxpayers proposing additional taxes based on the IRS matching program). They found that 5.1% of the samples in the study were sent incorrect notices. The errors resulted in $18,968 of over assessed tax and $1,146 of under assessed tax. Based on this information, TIGTA estimated 243,345 taxpayers would be over assessed and 97,430 would be under assessed over the next 5-year period. In our experience, the incidence of incorrect IRS notices is higher than that demonstrated in the TIGTA study. Unfortunately, most taxpayers pay-up for fear of further trouble or because "It's from the IRS, it must be correct!” Contact us before paying any additional tax due to an IRS notice.
Does filing an extension mean I don’t have to pay my taxes until October 15th?
No. An extension is an extension of the time to file not an extension of the time to pay. Any tax unpaid beyond the April 15 filing deadline will be subject to late payment penalties and interest.
How long after I file my return do I have to amend my tax return (for this year or a previous year)?
Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. If you filed your original return early (for example, March 1 for a calendar year return), your return is considered filed on the due date (generally April 15). However, if you had an extension to file (for example, until October 15) but you filed earlier and the IRS received it July 1, your return is considered filed on July 1.
Why do I need to check in?
During check in we verify the accuracy of the contact information that is to appear on your tax return. You must complete our tax appointment questionnaire (which is updated every year as the tax laws change) to make sure we don’t miss any deductions or credits pertinent to your tax situation. You may complete the form in the privacy of your own home. The form is located under Important Documents. Complete the Tax Return Appointment Questionnaire and submit it to our office prior to arrival.
What if I decide to contact you after January 15th to schedule my tax appointment?
The majority of our clients take advantage of our pre-scheduled appointment program. Consequently, the later you wait to schedule your appointment the fewer the number of available appointments. To secure the most convenient appointment, we highly recommend pre-scheduling your next year’s appointment at the time of pickup.
Do I have to fill out the Tax Return Appointment Questionnaire again? Nothing has changed; can't you just refer to last year’s answers?
The tax laws are constantly changing. This questionnaire is designed to uncover deductions, credits and other items that will help us make sure you are legally paying the lowest possible income tax. You may complete the form in the privacy of your own home. The form is located under Important Documents. Complete the Tax Return Appointment Questionnaire and submit it to our office prior to arrival.