Frequently Asked Questions
Find answers to recurring questions
Table of contents
- What do I do if I receive a notice from the IRS about my taxes?
- I owe the IRS money. What are my options?
- I didn’t earn very much, do I still have to file tax forms?
- I haven’t been filing my tax returns what should I do?
- How long do I keep my records and tax returns?
- How do I find out about my refund?
- What do I need to bring when I am having my taxes prepared?
- Can I have a tax organizer to help me with my tax preparation?
- What if I am audited?
- How do I know if I can do my own taxes or if I need to consult a certified public accountant?
- What is the difference between certified public accountants (CPAs) and accountants? If you get audited by the IRS, can either of them represent you?A CPA has demonstrated professional competence by passing a rigorous examination and meeting high standards of education. In addition, they must meet strict continuing education requirements, undergo peer review, and adhere to a stringent set of ethical standards. CPAs are authorized to represent taxpayers in an IRS audit, as are attorneys and other professionals known as enrolled agents (EA). An EA is an individual who has demonstrated technical competence in the field of taxation and is the only taxpayer representative who receives their right to practice from the U.S. government. An accountant can only represent a taxpayer before the IRS if he or she is an EA.
- How can I know which CPA is best for me?Any professional you choose should not only have the technical knowledge required but should also treat you with respect. Does your CPA take time to listen to you? Does your CPA return your calls in a timely manner? Do you feel comfortable asking your CPA a question? When you need a professional who will make you their top priority, call us!
- What if I am currently using QuickBooks Desktop or Online?You will send us a backup of your QuickBooks file and we will use the same file for our bookkeeping purposes. If you use QuickBooks online then you will add us as a user to the account.
- How often do you send your financial statement?Every month, you will get your monthly financial statements that consist of the following 6 reports:
- Balance Sheet By Month
- Profit and Loss By Month and % of Income
- Profit and Loss - Prior Year Comparison
- Profit and Loss - Prior Month Comparison
- Draws or Due to Shareholder
- General Ledger - Expense Accounts
Please see our sample financial statement.
- How often do you reconcile my bank and credit cards?We will reconcile your books on a monthly basis
- How do you access my bank account or credit card accounts?You will setup a “view only” user access with your bank for us. This would give us limited access allowing us to only view and download the activity, check images and statements. As a restricted user, we will not have the ability to make any financial transactions.
- What if I have not done book keeping for several months?We find that many small business owners don’t keep up to date with their bookkeeping. So we have our own team that can get you brought up to date in usually under 1 week.
- Can I test drive a sample company payroll?Test drive a sample company.
- Can you tell me how your payroll service works?See how our payroll service works.
- How is your payroll service different from other service providers?Please see our payroll comparison chart. Also see our Payroll Brochure.
- Do you charge extra for Direct Deposits, year-end W2 filings or extra payroll runs?Unlike other payroll processing companies, we don't charge extra for direct deposit, year-end W2 filings or extra payroll runs.
- How can I access my payroll?You can run payroll from any computer with internet access (or we can do everything for you, once you send us your timesheets).
- What do I do if I receive a notice from the IRS about my taxes?Don’t panic! The first thing to do is carefully read the notice—to determine why it was sent, what the IRS is requesting, and what they want you to do. It may be nothing of importance; it may even be a notice in your favor. After reading it you should bring it to our attention.
- I owe the IRS money. What are my options?If you can afford to pay the amount you owe, it should be paid. But often times, that is not the case. If you cannot afford to pay, you have several options. Ignoring the IRS should not be one of them! The first option is to enter into an installment agreement with the IRS. To do this, you need to fill out Form 9465, Installment Agreement Request. This form is fairly easy to complete, but if you owe a substantial amount of money, we strongly recommend that you work with us to secure your agreement. The second option, which is much harder to get approved, is an Offer in Compromise. The IRS will be reluctant to do this if they feel you have the resources to eventually pay. You should not attempt an Offer in Compromise without professional help that you can trust. The IRS has also issued a consumer alert, advising taxpayers to beware of promoters’ claims that tax debts can be settled for “pennies on the dollar” through the Offer in Compromise program.
- I didn’t earn very much, do I still have to file tax forms?There are many different items that could figure into answering this question—such as your filing status, your sources of income, whether you had any tax withheld, etc. This is a link to the IRS instructions for filing requirements: or you can contact us for help
- I haven’t been filing my tax returns what should I do?First, you must determine if you were required to file in the years you did not file. There are many different items that could figure into this—such as your filing status, your sources of income, whether you had any tax withheld, etc. Here is a link to help with IRS filing requirements or you can contact us for help in determining whether or not you were required to file. If you were required to file, we can handle all of your prior year filings. It is very important that you do not just continue to not file. If you owe money, the penalties for not filing are high. If you are owed a refund, you will lose your claim to it 3 years after the due date of the return.
- How long do I keep my records and tax returns?You should keep your records and tax returns for at least 3 years from the date the return was filed or the date the return was required to be filed, whichever is later. It is recommended that you keep these records longer if possible.
- How do I find out about my refund?Click here to check your Federal Refund. Click to check your state refund: Alabama Arkansas Arizona California Colorado Connecticut Delaware Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Louisiana Maine Maryland MichiganMinnesota Missouri Mississippi Montana Nebraska NewJersey New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina Utah Virginia West Virginia Wisconsin Washington DC
- What do I need to bring when I am having my taxes prepared?The following is a list of the more common items you should bring if you have them: - Wage statements (Form W-2) - Pension, or retirement income (Forms 1099-R) - Dependents' social security numbers and dates of birth - Last year's tax return - Information on education expenses - Information on the sales of stocks and/or bonds, including cost basis - Self-employed business income and expenses - Lottery and/or gambling winnings and losses - State refund amount - Social security and/or unemployment income - Income and expenses from rentals - Record of purchase or sale of real estate - Medical and dental expenses - Real estate and personal property taxes - Estimated taxes or foreign taxes paid - Cash and non-cash charitable donations - Mortgage or home equity loan interest paid (Form 1098) - Unreimbursed employment-related expenses - Job-related educational expenses - Child care expenses and provider information And any other items that you think may be necessary for us to accurately prepare your taxes.
- Can I have a tax organizer to help me with my tax preparation?Click here to download your free PDF tax organizer.
- What if I am audited?We provide audit protection so that if your business or personal tax return is audited, we will handle it for you.
- How do I know if I can do my own taxes or if I need to consult a certified public accountant?The IRS estimates that it can take 28 ½ hours to research tax law, organize your records, and complete a standard 1040 return with three common schedules. Tax law is constantly being changed, and it is important that you are educated about these changes so you correctly fill out your forms. Being technologically savvy is also important, as tax preparation software can help eliminate errors, both mathematical and technical. If you are not comfortable with using this type of software, you may want to contact a CPA. If you are a salaried employee who takes the standard deduction, your return is likely to be simple. However, if you have encountered a major life change, such as marriage or divorce, or own a vacation home or rental property, your tax situation may be more complicated. Self-employed individuals and small business owners are more likely to be audited by the IRS, and working with a CPA will help lessen that risk. In addition, if you have a high income, live in a state with high income taxes, or have a lot of miscellaneous itemized deductions, you could be subject to the Alternative Minimum Tax (AMT). The AMT, which eliminates many itemized deductions and was created to ensure that the wealthy pay their share of taxes, is now affecting more middle-class taxpayers. If you think this might affect you, consult a CPA. The American Institute of Certified Public Accountants (AICPA) provided the answer to this question.
- Do you provide registered agent services?We provide full Registered Agent services. Especially important if you are filing your corporation in a different state than where you are operating (AKA: Foreign), such as Delaware or Nevada Corporations. Order here.
- Do you provide due diligence services for purchase of new prospective business.Yes we do. Our due diligence package include:
- For last three years we will compare sales per month with bank statements.
- For last three years we will compare sales per month with sales tax returns (if any).
- We will review QuickBooks file for last three years.
- We will review business tax returns for last three years.
- We will compare your QuickBooks with the tax returns for last 3 years.
- We will prepare Industry Financial Report for last 3 years. We will also provide due diligence checklist.
- We will provide consultation from tax perspective for the purchase of the business. We will also help you analyze and evaluate your new prospective business.
- We will review your payroll tax returns and payroll reports for the current year.
- Free Gift - copy of our marketing book: 57 Ways to Grow Your Business, Bright ideas for Serious Entrepreneurs
- Free Gift - copy of our new business startup book: New Business Kit, A Guide to Financial, Tax and Accounting Considerations of Starting a Successful Business
- Can you incorporate a new business for me?Yes, we can incorporate your business. Our incorporation package includes:
- State Incorporation
- Federal EIN Application
- Preparation of S-Election Forms
- Consultation on Entity Type
- Free copy of our book: New Business Kit - Financial, Tax and Accounting Considerations of Starting a Successful Business.
- What services does SK Financial CPA provide and specialize in?The following is a brief list of the services we offer to our clients:
- Bookkeeping Services
- Payroll Processing
- Tax Preparation for Individuals and Businesses.
- New Business Formation
- IRS Audits and Collection Problems (Audit Representation, Penalty Abatement, Liens and Levies, Offer in Compromise, Delinquent Taxes, etc.)
- Reviews and Compilation Services
- How much do you charge to keep books by job/class/property?We charge $25 per job/property/class to keep the books.
- What are the fees for personal tax preparation?See our pricing list for individual tax preparation. Our fees are generally 10% to 30% less than other service providers such as H&R Block.
- Do you charge setup fees?No, we don't charge setup fees.
- How are your fees determined?We charge a fixed monthly fee with no surprises, hidden charges, stipulations, or disclaimers. Please see our pricing page for the monthly fee.
- What are the bookkeeping fees for prior months?The fee for prior months will be at 75% of the current monthly accounting fee.
- What happens to the QuickBooks file when I cancel my service?If you leave for any reason, we will gladly provide you with a copy of your QuickBooks backup file.
- What is the standard contract period for your services?Our services are provided on a month-to-month contract, giving you the flexibility to cancel at any time with a 30 day notice.
- Can I cancel my service any time?You can actually TRY our services FREE for 30 days - if you don't like it, cancel within 30 days and we will refund your fees.
- Do you provide year-round service?We are here for you all twelve months of the year, and not just during tax season. Whether you have a simple tax question, need advice on the tax implications of a business decision, or want clarification on a government notice, feel free to give us a call.
- Do you charge for the initial consultation?SK Financial CPA allows each new prospective client a FREE 30 minute initial consultation. This consultation can be used to get to know the client and for the client to understand how SK Financial CPA can benefit their business and themselves personally as well.