Posted on April 2, 2010 - by admin

Tax Time Questions

Always, at tax time, people have more questions than answers. One common question that many CPAs get each year is how can I lower my tax bill?  It is recommended that you participate in a 401k where you work or start a IRA but sit and talk with your CPA as this is the person who can point out deductions that you don’t know about.

What type of information is needed at tax time?  At the very least you will need your W-2 form from your employer and anything else that documents you income.  This could be a 1099 and you will also need your mortgage records and property taxes. Also have with you receipts for items that that you will deduct like business expense reimbursements. Maybe you are ready on time, then what? It is possible to get a six month extension on your return but you still need to estimate if you own and mail that by April 15th.

If you are unable to pay what you owe, you could be subject to a penalty and interest charges but you can ask for a monthly installment arrangement and this can be done by filing a form 9465 and must be done within thirty days, and that is if you plan is accepted by the Internal Revenue Service.