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Frequently Asked Questions

We try to anticipate questions you might have about our PRODUCT / SERVICE and provide the answers here. If you need additional information send email to YOUR EMAIL ADDRESS.
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Frequently Asked Questions for Taxes and Accounting

Tax and Accounting Questions

  1. Why do I have to fill out a tax organizer? You don’t! Shirley the Tax Expert operates differently than most tax preparation services that require you to decide where every number should go and do all the work yourself. We want to take your stress away by making it as easy as possible for you. Just bring us your paperwork and we’ll figure it all out. We’ll ask you questions about anything that is unclear.
  2. What are some of the advantages of a professionally-prepared tax return?
    • Professional, expert advice provides up-to-the-minute tax legislation that may lower your taxes.
    • Reduces the possibility of audit through accurate and compliant tax return preparation.
    • Home financing and business loans may be more easily obtained with professionally-prepared tax returns.
    • You can get refunds faster through electronic filing.
    • No hassles, no headaches.
  3. What are some major reasons people get audited?
    • Extremely large medical expenses deducted on Sch. A
    • Employee expenses, particularly mileage
    • Subcontractor 1099 payments

    As long as you have impeccable records you have nothing to worry about.

  4. Why do people fail IRS audits?
    • They don’t keep accurate books.
    • They don’t retain receipts & canceled checks.
    • They co-mingle money. Personal and business funds should always be kept separately.
  5. Do I have to file a tax return? Filing requirements depend on your income and other factors. Call Allied Accounting & Tax Service for a free phone consultation regarding your personal filing requirements.
  6. What are the advantages of electronic filing of tax returns? There are several advantages to “e-filing.” Your refund gets to you faster. Also, there is electronic proof that the IRS received your return. Allied does not charge an additional fee for e-filing, and you have more security.
  7. What is Alternative Minimum Tax? Alternative minimum tax (AMT) really isn’t an “alternative.” It’s a mandatory tax for individuals of higher income brackets who have excessive deductions, exclusions, and credits. AMT is intended to shift some of the tax burden to taxpayers with substantial income who would otherwise avoid a tax liability.
  8. Why do I need an accountant? The key to keeping any business functioning properly is to keep a tight rein on the financial aspects of the business. At Allied Accounting & Tax Service, Inc. we know that all too often, the search for an accountant begins when the business owner finds him or herself in a bind—especially around tax time. Almost all business owners, whether their business is big or small, discover they will eventually need to find the best accounting advice they can get. It is far better to find accountant services at the beginning of a business endeavor and avoid waiting until the last minute to find a qualified local accountant to assist with business tax planning and management.
  9. How to choose the best entity for your business How you legally structure your organization will impact the amount of taxes you pay and the manner in which you pay them as well as determining your personal liability for circumstances that arise during the course of your business. We will be happy to discuss the ramifications of choices such as incorporating your business—or remaining a sole proprietor or partnership, and different types of corporate and partnership structures.
  10. What does Full-Charge Bookkeeping mean? Full-charge bookkeepers maintain complete accounting and payroll transactions. They are detail-oriented and able to organize financial information to accurately maintain the second most valuable IRS audit defense for businesses—the general ledger. (Actual receipts and canceled checks are the #1 most valuable IRS audit defense, but the general ledger provides the trail and validation). The full-charge bookkeeper substantially prepares financial statements by trouble-shooting accounting problems and making necessary adjustments to the general ledger based on factual data (such as bank records, accounts receivable, accounts payable, loan balances, inventory count) and calculated data (such as depreciation, cost of goods sold, and prepaid expense deductions).

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DID YOU KNOW

That you can receive 14 cents per mile driven in service of charitable organization

That you can deduct up to $10,000 in your business startup expenses

IRS allows tax deduction for doctor approved weight loss medical expense. Ask me about the specifics

Attention, Nursing mamas! It now pays to Breastfeed your little ones in more ways than one. In addition to it being a great way to Feed Your Baby, thanks to the IRS, you will be able to write off the Cost of Breast Pumps and Nursing Supplies as Medical Tax Deductions. That’s fantastic news!

The American Academy of Pediatrics (AAP) has been pushing for this Breastfeeding Tax Code Change for a very long time. When things like Vasectomies and Weight-Loss Programs are considered allowable medical expenses, one has to wonder why lactation supplies and things that promote and support breastfeeding have gone without consideration for so long. In other words, it’s about time!

New moms: Here’s what you need to know to get a Tax Break for Breastfeeding…

Breastfeeding Tax Breaks Basics

Of course, there is a catch: In order to deduct such Medical Expenses, your Costs associated with Nursing have to exceed 10 percent of your Adjusted Gross Income(AGI). But don’t fret. Crossing that threshold, especially in your baby’s first year of life, will come before you know it. Breast Pumps and Pumping Supplies can be incredibly Expensive, not to mention trips to the Pediatrician’s Office, Classes, and Lactation Workshops, and the other various Prenatal and Post-Natal Expenses can rack up pretty quickly. Keep track of all your related expenditures

www.irs.gov