Our Most Frequently Asked Questions:
Are you a CPA Firm? No, we are not a CPA firm.
What's the difference between a CPA firm and a Tax and Bookkeeping firm? We are Tax and Bookkeeping Specialists with an Enrolled Agent on Staff, not public accountants.
What's an Enrolled Agent? An Enrolled Agent (or EA) is a federally-authorized tax practitioner who has technical expertise in the field of federal taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service (IRS) for audits, collections, and appeals. Enrolled agents are the only federally-licensed tax practitioners who specialize in taxation and who have rights to represent taxpayers before the IRS. Some attorneys and CPAs also have technical expertise in federal taxation and specialize in taxation, but are licensed by state authorities rather than by the Department of the Treasury.
Are you current with your own taxes? Absolutely, yes! In order to be a part of the IRS e-file Authorization Program individuals and the business they are representing must be current in their tax filings and paid up in all areas of tax, including payroll and state. If this requirement is not met going forward, the IRS can and will revoke either a firm or individual's e-file privileges. We have no liens or judgments against us either.
Why do you charge me per form for W-2 forms, 1099 forms and such? We feel that charging per form is a more accurate and fair method to bill our customers as it levels the playing field. Why should someone that has a 1040 with only one W-2 form pay the same price as someone who has a 1040 and seven (7) W-2 forms?
Will you charge me for a quick question? Absolutely not! We will not charge you for quick questions, even if they require research. We want to help our clients and are dedicated to being good stewards of information. Unlike other firms we are here to help our clients, not just make a fast buck. Customer Service is just as important as accuracy for us!
Who actually does the work? The hand you shake when you come in the door is the hand that will do your work. We do all our own work in-house. We have qualified and educated staff that does the actual work, not data entry clerks like some tax or CPA firms. You will always be able to speak with the individuals that perform work for all of your services at anytime. We do not outsource or have any non-employees that handle your sensitive information.
Why shouldn't I just use tax software; it's cheaper isn't it? While tax software may actually cost you less in dollars, it will cost you much more in time and frustration. Most people hire out lawn care, not because they can't do it, but because their time is better spent doing what they love instead of slaving outside on a hot day. It's the same principle with your taxes. Why put yourself through all the headache, paperwork, and forms, forms, forms? Yes, tax software might be cheaper, but it doesn't come with trusted advisors, two college degrees, over 40 years of combined tax and bookkeeping experience, and errors and ommission insurance.
Do you recommend risky strategies to lower my taxes such as paying my children? No! We actively discourage high risk tax avoidance schemes such as these to attempt to lower your income tax. There are ethical and more effective ways to reduce your taxes such as donations, keeping mileage logs, tracking non-reimbursed businesses expenses, IRA contributions and such that are legal, more effective, and will not land you in a heap of tax fines and back taxes should you get audited. For every deduction you make you should always ask yourself, "Can I defend this to the IRS if I were to get audited?" Beware of tax firms that promise to lower your taxes or help you find money "like getting a paycheck" or changing your deductions at your job for an "instant pay raise." You'll be the one holding the bag should the IRS audit you. Do not ever do anything you are not comfortable with, ever.
Is filing/paying my income tax optional? No. (Don't laugh - you'd be surprised how often we are asked that.)
Are all your prices listed online? We can't list every single form or service we provide online. We have posted the most commonly used forms and services online. If you can't find what you are looking for please call or email us and we'll be glad to give you a firm price quote for the services you are requesting.
Will I get stuck with additional billable hours on my income tax preparation? No. The prices listed for income tax preparation are firm and not subject to additional charges for tax preparation. Additional services you request, such as Bookkeeping or QuickBooks clean-up, will be quoted and billed to you separately.
What are "processing fees?" Processing fees are the cost to us to keep electronic copies of all your income tax preparation paperwork used to prepare and finalize your income taxes. We keep these electronic copies as a form of insurance - in case you are not able to locate your original tax information for an audit or mortgage application we can provide you with a printout of our electronic copies. Copies of your paperwork are provided to clients free of charge anytime.
Why should I outsource my bookkeeping? It costs less to have us do after the fact bookkeeping than to hire someone part-time. You will also have an expert on call for any questions you may have. Let a professional keep your books so you can get back to growing your business.
What Bookkeeping Method do you use for your Bookkeeping Services? We use the traditional Double-Entry Bookkeeping Method.
Why should I outsource my Payroll? Seriously, you have to ask? Payroll is a pain in the neck! Who needs that time-vampire and headache? We use Intuit's QuickBooks Enhanced Payroll to make payroll easy and remove the burdens so you can get back to growing your business and making money!
What is the difference between a ProAdvisor and Certified ProAdvisor? Anyone can be a regular ProAdvisor - just pay the required fee. A Certified ProAdvisor has successfully studied and passed the certification exams as required by Intuit, the makers of QuickBooks. There are three different ProAdvisor Certifications, each with its own examination:
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QuickBooks (Simple Start, Pro, Premier, Mac, and On-line)
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Enterprise
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Point of Sale
Also, there are two different levels of Certification: Certified and Advanced Certified. In order to be Advanced Certified you must have passed the QB Certification exam for three (3) consecutive years and passed the Advanced Certification Exam. If you are unsure whether or not the ProAdvisor you are using is certified, look on the QuickBooks Find A ProAdvisor website by clicking on this icon:
You can see the Intuit Website of one of our Certified ProAdvisors, Andrew Hill, by clicking on this icon:
You can see the Intuit Website of our other Certified ProAdvisor, Gary Nunn, by clicking on this icon:
I haven't filed my income tax in years. What should I do? You should immediately contact a tax professional that can advise you and guide on how to get your late income tax returns filed as quickly as possible. It is much better for you to initiate contact with the IRS through your representative and get your taxes filed than for the IRS to contact you about past due taxes. Depending upon the circumstances, you may be granted amnesty. Be proactive and honest and you'll get a lot more accomplished than sticking your head in the sand.
I received a letter telling me I'm going to be audited! What do I do? Gather all your receipts: proof of income, proof of deductions, and any and all paperwork you have to support the tax return(s) for the year(s) being audited. Be ready to explain every single income and deduction you listed on the return. An audit is really a simple matter just to spot check tax filers. You're not going to go to jail for simple mathematical errors or because you didn't understand where to put the Form 1099-SA you received. Call a tax professional to help you prepare or to sit with you during the audit if you are uncomfortable or unsure of anything. Also, remember to be polite, courteous, and responsive to the IRS auditor assigned to your case. This is not the time to purge your hidden anger. Auditors are people with feelings too! The old adage, "if you have nothing to hide and haven't done anything wrong then you have nothing to worry about," is very appropriate here.
I'm not a business franchise; do I have to file the Texas Franchise Tax? Yes, the Texas Business Franchise Tax is for every LLC, LP, S-Corp and C-Corp that conducts business in the State of Texas. "Franchise" is an unfortunate choice of a word that simply refers to the above listed business entity types. Sole Proprietorships do not have to file Franchise Tax Returns.
What does your complimentary tax review include? We will review your last two tax returns, looking for mistakes, errors or omissions. Of course our goal is to keep you compliant and legal, but all the better if we can find deductions you missed and get you an additional refund. Please bear in mind it's not a treasure hunt! Most of the time tax returns are completed satisfactorily and no amendment is required.
Is the IRS legal? Yes, the IRS is a legal Government Agency as set forth by Congress. (Interestingly, the IRS has its origins based in the Civil War of the United States.) Specifically the IRS is a part of the Treasury Department as set forth in the following Code of Federal Regulation:
"The Internal Revenue Service is a bureau of the Department of the Treasury under the immediate direction of the Commissioner of Internal Revenue. The Commissioner has general superintendence of the assessment and collection of all taxes imposed by any law providing internal revenue. The Internal Revenue Service is the agency by which these functions are performed."
26 C.F.R. section 601.101(a).
Is it true the income tax system is illegal under the Constitution? Get Real! The income tax system is not illegal under various Constitutional Amendments, improper Amendment ratifications, or any other argument, no matter what you may have heard. The 16th Amendment ratified on February 3, 1913 specifically states:
"The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."
Bottom line, people have tried every argument to get out of paying taxes, none of them has ever worked. You have to file and pay income tax to the Federal Government and any State agencies as required by Federal, State, and local laws. Refusing to pay your taxes can get you classified as a "tax protestor," and the IRS deals with tax protestors quickly and decisively. Don't be a fool - file your income taxes every year!
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