From his time spent as a CPA at several of the largest public accounting firms, David has become familiar with all manner of income tax preparation. From servicing the ultra-wealthy to assisting essential workers, David has spent years helping individuals with their Federal and state income tax returns.
Income Tax Preparation
Individual Income Tax
The bulk of the firm’s work comes in the form of preparing individual income tax returns for taxpayers throughout the country. We work with all different types of people, including professionals, artists, business owners, nonresidents, employees, employers, and more. Our client base is a melting pot of people from all walks of life. Whether you are an interior designer, a construction worker, an uber driver, an orthopedic surgeon, or a big time attorney, we will ensure you receive every tax dollar to which you are entitled. Individual income tax returns are due April 15 on an annual basis.
With the advent of the coronavirus, remote services have become an every day part of life. Coincidentally, our firm was set up for remote tax services before the pandemic! We have been prepared to assist clients remotely for years now.
Our secure firm portal is an integral part of our practice. The portal allows taxpayers to submit their tax information electronically. The need for delivering paper documents in person or via mail no longer exists. Conversely, our firm is able to deliver completed client tax returns electronically. As discussed on our process page, a client’s tax returns are uploaded to the firm portal when the tax returns are complete. The client will have access to their tax returns via the secure firm portal at all times.
Finally, all client tax returns are electronically filed. Our firm is a paperless environment. E-mails are sent to clients to confirm the acceptance of their tax returns. Submission records are available upon request.
Knowledge and experience are of the utmost importance. Our firm differentiates from other small CPA shops for one important reason: prior experience. David spent ten years working at the largest public accounting firms in NYC. The amount and variety of exposure at a large public accounting firm is incomparable to a small practice. Small firms start out small, remain small, and deal with a very limited range of tax issues. Professionals at smaller firms start at smaller firms. This is the nature of the industry.
Our firm has a range of experience that 99% of smaller CPA firms do not have. Most of the time, when professionals work at large public accounting firms, they remain in that environment for the remainder of their careers. It is very rare for a professional to leave that type of environment and create a new firm. This is where we stand out. The wide range of experience learned from his time with larger firms can now be applied to David’s personal clients.
Next, attention to detail is the name of the game. Our firm thoroughly prepares individual income tax returns from start to finish. Instructions are provided to each client directing them on exactly what documents to upload, requesting vital information for each new year. Clients are presented with an extensive list of questions relating to new tax law, ensuring that all available tax breaks and strategies are applied. Every tax year brings about new tax laws and we pride ourselves on keeping up to date on our profession.
Furthermore, as a paperless firm, we have the ability to complete tax services far more efficiently than the old brick and mortar shop. Preparing tax returns, responding to tax notices, and communicating with clients is all far more streamlined when performed electronically. Submissions to the IRS are electronically faxed, tax returns are electronically filed, tax payments electronically paid, and tax refunds are electronically deposited.
Even meeting with our clients is a much simpler, quicker process. We have far more access to face to face communication with clients through the use of Zoom or Microsoft Teams. Meetings can be set up within minutes or hours as opposed to arranging a day far in the future to discuss important topics.
Finally, and most importantly, we are not just tax preparers, or people entering numbers on a computer. We will become your go-to source for tax advice, financial advice, and even important life decisions. We value long lasting relationships with our clients. Inputting your tax numbers is a miniscule part of the job. Earning your trust is far more important.
Catching Up On Past Due Returns
Our firm is frequently approached by potential clients requesting reconciliation of past records and filing of past due tax returns. If you have lost your tax information, or other business and personal records due to the passage of time, we will assist in sorting out your past due taxes. Our team will guide you through obtaining the necessary materials to straighten out and file your prior-year taxes. We will ensure inclusion of all details that may lower your tax obligation.
Past due returns may incur several types of penalties: failure to file, failure to pay and substantial underpayment penalties. It is important to act as early as possible to begin settling any fees due to the IRS.
Our firm will help estimate potential failure to file and failure to pay penalties that are incurred by clients who have failed to file past years’ returns and can help in getting those returns filed properly. Additionally, interest will be accumulated on any tax amounts due to the Federal or state governments.
An important note – penalties and interest are only due for tax years in which the taxpayer owes money. If a taxpayer is due a refund for a prior year, there will be no interest or penalties associated with the prior year filing. In fact, it would only be beneficial to file since the client is due a refund!
The most commonly known fact associated with the “three year” period is the period of time related to filing amended tax returns. The latest a taxpayer can file an amended tax return is either (1) three years from the date of filing or (2) two years from the date of payment, whichever is later. However, there is another rule related to a three year period. This rule is more applicable to prior year tax returns.
If a taxpayer made a payment to the IRS more than three years ago, he/she is not eligible to receive it in the form of a refund. This is a very important rule for employees because employees are paying the government through withholding. If taxes were withheld more than three years ago, that withholding is no longer eligible to be claimed as a refund. This also applies to any and all estimated tax payments. In other words, don’t wait to file prior year past due tax returns!
Fixing Mistakes On Prior Returns
What happens when you file your income tax returns and later discover you made a mistake? Mistakes are corrected when addressed within a certain time frame. This process is known as filing an amended tax return. There are certain rules that apply to amending tax returns, such as time limits, filing status, and replicating the original return. An amended tax filing is different than an original tax filing. Form 1040X compares the original numbers (income, deductions, and tax amounts) to the amended numbers. Many clients attempt to prepare their own amended tax returns only to discover the complexity involved.
To file an amended tax return, you must file within the applicable time frame. Generally, for a credit or refund, you must file Form 1040-X within 3 years after the date you timely filed your original return or within 2 years after the date you paid the tax, whichever is later. Here it is, directly from the IRS.
”David did an outstanding job on our taxes! Even with multiple K-1's, kids in college and estate taxes, he knew how to handle everything. Great job!Jim S.Yelp Review