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Consulting Services Tax & Accounting

Experienced Tax Problem Solvers • Specializing in Business & Individual Tax Solutions

Tax Preparation

Posted on: May 4th, 2016 by consultingsrvs No Comments

Tax Preparation

 

Tax Preparation

We’ve all done it. But, this year is going to be different! I’ll have my taxes filed early this year! Sound familiar? You said it once, you’ve said it a thousand times, and every year, it’s the same story. Maybe you realized you never received a crucial document in the mail, you misplaced some receipts necessary to back up that big write-off you were counting on, or maybe your total deductions aren’t quite adding up.

Relax, you’re not alone — or doomed to miss the filing deadline. Tax-time problems are quite common. And while they may seem scary at first, most issues can be easily fixed-with a little tax preparation and know how.

To help you navigate the season’s trickiest head scratchers, we’ve laid out several common tax problems — plus some tips for putting you back on track.

1. There’s A Mistake on My W-2

If your W-2 — the federal form issued by your employer that indicates how much you’ve earned for the year reports the wrong amount of income, the Internal Revenue Service could slap you with an inflated tax bill.

As soon as you realize there’s an error, contact your employer and ask for a corrected form.

This process can take a while, so think about filing for an extension. The good news is that the IRS will have records showing that you’re working toward a resolution.

2. My Former Employer Is Out of Business

If you haven’t received a W-2 because you’re company has gone out of business, it’s possible that the IRS could bill you for back taxes, with interest and penalties.

If your company went under before issuing you a W-2, you can file a substitute wage statement, also known as Form 4852. Use information from your last pay stub to complete the document. Can’t find your last paycheck? Then carefully estimate your numbers. You’ll have to substantiate your figures on Form 4852 should you ever get audited by the IRS

3. I Didn’t Receive My 1099

Independent contractors are typically on their own when it comes to reporting their income and paying taxes, unlike W-2 employees. So it’s crucial to keep track of the 1099’s issued by clients in order to substantiate your income claims.

If a company fails to send you a 1099, it’s not the end of the world. Just because there are no withholdings reflected on the 1099, your own records of income are enough to file your tax return. Make sure you’re keep records of client invoices, deposit receipts and bank statements, all of which can be used to determine your income and tax liability without a 1099.

4. I’m Missing Substantiating Documentation for a Deduction

If you choose to itemize your deductions, receipts and other supporting documents will be needed to prove how much you spent. Otherwise, the IRS could disallow your deduction. If you’re just missing a few records or receipts, you’re probably OK.

If you can determine the number of miles you’re vehicle averages per gallon of gas, then you can calculate how far you drove. Be sure to deduct personal use from the total mileage. For other business deductions, a credit card or bank statement may serve as proof of an expense.

5. How Do I Prove I Had Health Insurance

Starting in 2014, all taxpayers must prove they have health insurance to avoid paying federal penalties. If you obtained a policy on the exchange you will receive Form 1095-A, as supporting documentation

The IRS has not given specific instructions about what types of documentation to provide to show health insurance coverage, and that can be confusing. It is suggested that you offer as much information as possible including copies of your insurance card and/or billing statements from your insurance provider, or your final pay stub, showing how much was deducted from your paycheck for premiums.

Consulting Services Tax & Accounting offers business and personal tax services, including tax services for late filer, non-filers, and for anyone who may have fallen behind in the payments of their tax obligations. Estate & Trusts tax preparation is also one of our specialties.
If you or your business has been audited and you require representation, you can rely on our expertise with the audits.
A full service agency, we offer in-house accounting or payroll services. Call today, and we will be happy to give you a free strategy session before we begin to work together.

Areas of Expertise

Non-filer & Delinquent filers

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Non-filer & Delinquent filers

At Consulting Services Tax & Accounting, we know that sometimes life can be complicated, and that can make doing your taxes even more difficult. Sometimes, things can just get away from you, and before you know it, one or more years have gone by. That's why we want to work with you, to make it easier to get caught up and current with your tax filing obligations.

Multistate filers

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Multi-State Filing

Sometimes in life you've got to move around. Your work life can take you to many different places, whether it's a short-term assignment, or a long-term move, this may mean that you will need to file a tax return for multiple states. Many smaller tax preparation firms lack either the expertise or the software to handle multi-state filings. With Consulting Services Tax & Accounting, you can count on us to get all of your tax problems under control, no matter what state filings may be involved.

Small Business

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Home-based Small Business Specialist

If you own a small business, you have enough on your mind just trying to handle your day-to-day affairs and help your business grow. Tax time often adds an even greater burden to the small business owner because the rules for deductibility, depreciation, and how to determine your taxable income can be confusing and time consuming. We want to make tax time easier for you, so you can get back to focusing of the running your business.

Corporate and LLC filing

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Corporate & LLC Guidance

Whether you've owned a small business for a while, or you want to start your new business with a plan for the future, the staff at Consulting Services Tax & Accounting is here to help. We can advise you on the best route to take whether it is the formation of an LLC, Partnership, S-Corp, or a C-Corp, and what the advantages and disadvantages are for each type of entity, so that you'll be prepared to make the best possible choice for your businesses future.

Why Choose Us?

Full service Full Service

As a full service tax preparation firm, not only do we offer professional tax preparation we also offer in house accounting and payroll services. Call us today and we will be happy to set up an appointment for a free 30 minute consultation before we begin working together.

Trust us Year Round Service

Consulting Services Tax & Accounting is available and has regular office hours Monday thru Friday year-round to assist you with any and all tax, accounting and payroll issues that may arise.

Piece of mind Peace of Mind

You can count on Consulting Services Tax & Accounting to provide you with high-quality services and expert advice that will put all of you tax time worries to rest.

Custom care We Are There for You

If you have a unique or difficult tax situation, we are always here to help you. We have seen many different tax scenarios in our 45+ years of service to the Madison area.

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