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FAQ
(Frequently Asked Questions)
Who
We Are
The Organizer
Daycare
About
Us
Why
should you select The Tax Professional to handle
your taxes?
TTP
is owned and operated by an individual who is enrolled to
practice before the Internal Revenue Service. The Enrolled
Agent designation is given to individuals who successfully
demonstrate expertise in the field of taxation by sitting
for and passing the enrollment examination administered
by the Internal Revenue Service annually. So stringent is
this examination that only one-third of those taking it
can pass. There are currently less than 35,000 Enrolled
Agents practicing nationally. In fact, Enrolled Agents account
for less than 10% of all individuals currently practicing
in the field of taxation.
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What is an Enrolled Agent?
The
Enrolled Agent title is the only professional credential issued
in taxation at the federal level. Maintaining the Enrolled
Agent designation requires 72 hours of continuing professional
education every three years. This education is narrowly
confined to subjects related to taxation to maximize
an Enrolled Agent's tax proficiency. The Education is closely
monitored by the U.S. Department of Treasury. Enrolled Agents
are actually specialists in the field of taxation, able
to prepare returns for individuals, partnerships, corporations,
trusts, estates, and other taxable entities. Enrolled Agents
are also authorized to appear before the Internal Revenue
Service on behalf of taxpayers. Only Enrolled Agents, CPAs
and attorneys have this license.
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Will my name show up on a mailing
list? Do you keep my information in the strictest confidence?
Your business will be handled in strict confidence dictated
by the professional and ethical standards of an Enrolled
Agent. This firm obtains most of its clients through referrals,
which means you were most likely referred by a relative,
associate or friend. You can feel secure in the fact that
your financial and tax information will not be shared with
anyone, regardless of their relationship to you.
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What is involved in by-mail preparation?
In many ways, preparing a return through the mail works
exactly like an in-office appointment. Today's communications
technologies help make it possible. To begin with, you send
your pertinent data to our office so that it can be reviewed
and analyzed. Subsequent questions
are easily resolved through a phone call, mail or fax. The best part of by-mail preparation
is that the time you would usually set aside for an appointment
can now be used for something else, hopefully an activity
you really enjoy!
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Won't mail preparation slow down
the completion of my return?
Some taxpayers worry that tax preparation will take longer
to complete if done by mail. Not so! Our main
focus is the preparation of tax returns received by mail.
With the many options available in addition to regular mail
(express mail, Federal Express, priority mail, etc.), there
should be no difficulty getting the completed return to
you expeditiously.
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Won't it be a problem if we don't
meet face to face to prepare my return?
Continuity of service and relationship is a concern to many
taxpayers. However, experience has shown that by-mail returns
can actually strengthen the client-preparer ties. And if
a taxpayer plans to move out of state this year,
Several tax preparation options are available.
- The
taxpayer, wanting uninterrupted service from someone who
is familiar with his/her financial matters, can choose
to have the preparer at the old location do the return
by mail or
- The
taxpayers can locate a new tax preparer.
By
choosing option (2), the taxpayer must hope to find a reliable
tax professional at the new location. It can be done, but
has the disadvantage of the new contact person not having
access to the taxpayer's past records and history.
On the other hand, with option (1), the taxpayer can maintain
former ties and access to prior year records. Most of
all, the taxpayer will be able to maintain service with
someone known and trusted.
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Specifically which taxpayers benefit
the most from preparation by mail?
No single taxpayer benefits more than another when it comes
to preparation by mail. However, it gives certain taxpayers
special added convenience. It is especially helpful for:
- Those
who have transportation problems,
- People
who are shut in because of illness,
- Individuals
who will be traveling a good deal during tax season,
- Those
who have a work schedule that does not permit them to
get away at convenient times,
- Taxpayers
who reside a considerable distance away, or
- Those
who simply prefer the added convenience of having their
returns done by mail.
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The
Organizer
Where
do I put my W-2 information?
List
the name(s) of your employer(s) on Page 2. Place the W-2(s)
in the brown envelope marked W-2/1099. Follow this same
procedure if you have retirement income. List the name of
the payer from the 1099-R on Page 2and place the 1099-R
in the envelope marked W-2/1099.
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What are the most important pieces
of paper to include?
We must have copies of all items marked W-2 and 1099 (-R,
-INT, -DIV, -MISC). Check to make sure ALL W-2s are included.
Place all of these items in the brown envelope marked W-2/1099.
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Do I have to fill out all of the information
requested in the organizer?
No. However, it is vital that Page 1 (General Information) and
Page 4 (Basic Taxpayer Information) be completed
& checked for accuracy. Please make sure we have
the correct name and SSN of your dependent children, and
ORG 60 – State Information (including your state
of residence and home of record). It is important you
complete and thoroughly check these pages of the organizer,
especially for any changes that might reduce your tax liability.
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I bought/sold a home this year. What
info do you need?
We will need a copy of your settlement statement, also known
as HUD1. (Just providing the figures will not be enough;
we must have the documentation.) We will also need a copy
of the 1098 Mortgage Interest Statement that your lender
will send you.
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I sold some of my stocks this year.
What information do you need?
If you sold, swapped, traded, or exchanged any stocks, bonds,
mutual funds or unimproved property, you will need to send
the 1099B and the cost and date of your acquisition (Basis).
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I am an independent contractor/own
my own business. What forms do I need to fill out?
If you are an independent contractor or own your own business,
you will need to fill out ORG 19. In addition, complete
ORG 18 if you have car &/or truck expenses associated
with this business. If you have an office in your home,
complete ORG 20.
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I am a day care provider. How do I
keep track of my business expenses?
We recommend the Family Child Care Calendar. Please call
our office if you would like to purchase one of these helpful
tools for your business. The cost is $16 ($12 + $4 S&H).
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Where do I record information specific
to my estimated payments, IRA/Pension plan contributions,
education expenses, church and charitable contributions,
medical expenses, dependant child care, and rental property?
The information should be recorded on the following pages:
- Estimated payments - Page 4
- IRA/pension plan contributions - Page 2
- Education expenses - Page 1
- Church & charitable donations - Page 3 (non cash contributions require a receipt)
- Medical expenses - Page 3
- Rental Property - ORG 25
- Dependent childcare - Page 1, (We will need the provider's
name, address, SSN & amount paid.)
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Daycare
With each parent, I write on Form
W-10 how much they paid me for the year. Does this protect
me from a parent who is thinking about claiming more on
their Form 2441?
Not always. It is best to have the parent sign Form W-10
and keep a copy for your own records.
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What should I do if I lose a receipt
or forget to get one when I purchase something?
As soon as you realize you don't have a receipt, take these
steps to reconstruct your records: Save any check stubs
or credit card bills, take a picture of the item, and create
a receipt with all the relevant information. It is not acceptable
to write out 150 “new” receipts on December 31.
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May I claim the food I eat while caring
for the children?
No. According to Publication 587 Business Use of Your Home
(1997 edition), “You can never deduct the cost
of food consumed by your family.”
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May I use my time-space percentage
to calculate my food deductions?
No. The time-space percentage has nothing to do with the
consumption of food.
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May I count the hours I am shopping or
driving in my time-space percentage calculation?
No. You must be physically in your home. The time-space
percentage calculation is a way of measuring how much of
the home is used by your business. You may count the time
playing outside in your yard.
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