• 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.

  • How long do you keep my client tax records at your office?

    In general, we are required by law to keep copies of your tax returns for three years. In some instances we have been able to keep client tax returns and supporting documents in electronic format beyond the required three-year period but this cannot be guaranteed in all cases.

  • 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 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 admin@defilippisfinancial.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.