CPA’s must pass a comprehensive exam covering all aspects of accounting. In addition relevant work experience, a background check and an ethics exam must be completed before the state will issue a CPA certificate. To stay current on issues, 80 hours of continuing education are also required every two years.

An enrolled agent is a person enrolled with the IRS to help represent taxpayers. Enrolled agents must pass a three-part comprehensive IRS test covering business and individual tex returns and complete 72 hours of continuing education every three years. However, enrolled agents are not allowed to prepare GAAP financial statements.

In California, accountants who are not certified do not have to meet any requirements. Accountants may have a bachelor’s degree in this area, but it is not required. They are not licensed by any governing body and do not have to meet any continuing education requirements or pass any tests. 

Since we deal with individuals and small businesses, what you need to do before seeing us will likely vary based on the services that you are interested in. An initial phone interview can help us figure out exactly what you should prepare before and bring with you to a meeting. If you forget to call, bring what you have. We can always get you a list of what you are missing after the meeting.

Early! In our free initial consultation we can help you figure out what type of entity you should form and what the tax advantages are for each entity type. We also provide QuickBooks training so you can keep track of your business correctly from the start. Jody has years of experience running a successful business, and she can give you advice on many aspects of your company.

The answer depends on what type of entity you decided to be when you started.  If you are a C-Corporation or an S-Corporation, you will need to get set up on payroll and pay yourself a paycheck.  If you are an LLC, Partnership, or sole proprietor, you can usually cut yourself a regular “draw” check.

Starting in 2024 newly formed, corporations, limited liability companies (LLCs), limited partnerships, and other entities that file formation papers with a state’s Secretary of State’s office (or similar government agency) must file a report with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) providing specified information regarding the entity’s “beneficial owners.”

This is part of the federal government’s anti-money laundering and anti-tax evasion efforts and is an attempt to look beyond shell companies that are set up to hide money. The willful failure to report information and timely update any changed information can result in significant fines of up to $500 per day until the violation is remedied, or if criminal charges are brought, fines of up to $10,000 and/or two years imprisonment. These penalties can be imposed against the beneficial owner, the entity, and/or the person completing the report.

Beneficial owners are broadly defined and involve owners who directly or indirectly own at least 25% of the entity’s ownership interests or exercise substantial control over the reporting company (even if they don’t actually have an ownership interest). While this may seem to only impact a few significant owners, it can encompass many senior officers of the business as well as those individuals who are involved in any significant business decisions (e.g., board members). Given the severity of the fines, it may be safer to err on the side of over inclusion rather than under inclusion.

We can help you. Depending on how much time you want to devote to bookkeeping, we can set up a plan that works for you.  If you own QuickBooks and would like to do it yourself, we can train you on how to use QuickBooks and then review it for you once a month or once a quarter.  If you want nothing to do with bookkeeping, we have a bookkeeper on staff that can do everything for you, and we will review the monthly reports with you to keep you on track.

We speak ordinary English. Sure, we know all of those terms, but our job is to make sure you know how to make money and save taxes, and we pride ourselves in being able to clearly communicate our ideas to you.

There are many complicated issues to deal with when handling an estate or trust. In general you will need to obtain a tax identification number for the new entity, transfer all investment assets to the new entity, prepare a tax return at year end, and issue trust tax information forms to all the beneficiaries. It is very important that you meet with one of our tax advisors early on.

It’s a moment any taxpayer dreads. An envelope arrives from the IRS — and it’s not a refund check. But don’t panic. Many IRS letters can be dealt with simply and painlessly.

Each year, the IRS sends millions of letters and notices to taxpayers to request payment of taxes, notify them of a change to their account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return. Each letter and notice provides specific instructions explaining what you should do if action is necessary to satisfy the inquiry. Most notices also give a phone number to call if you need further information.

Most correspondence can be handled without calling or visiting an IRS office, if you follow the instructions in the letter or notice. However, if you have questions, call the telephone number in the upper right-hand corner of the notice, or call the IRS at 1-800-829-1040. Have a copy of your tax return and the correspondence available when you call so your account can be readily accessed.

Before contacting the IRS, review the correspondence and compare it with the information on your return. If you agree with the correction to your account, no reply is necessary unless a payment is due. If you do not agree with the correction the IRS made, it is important that you respond as requested. Write an explanation why you disagree, and include any documents and information you wish the IRS to consider. Mail your information along with the bottom tear-off portion of the notice to the address shown in the upper left-hand corner of the IRS correspondence. Allow at least 30 days for a response.

Sometimes, the IRS sends a second letter or notice requesting additional information or providing additional information to you. Be sure to keep copies of any correspondence with your records.  If you’ve received a notice and are confused about what to do next, please contact us and we can help!

1099-Misc forms are used to report amounts paid to independent contractors. This means that you performed a service for a certain price and got paid directly for your services. Companies pay independent contractors this way to avoid paying payroll taxes and the associated fees that come with adding an employee to their payroll. Which in turn means that the recipient is required to pay these taxes directly on their own tax return. To avoid being surprised by a high tax liability see us early to make sure that we can help you plan ahead.

Self employed individuals pay self employment tax because, unlike workers who receive a W-2, their income does not get taxed directly. Since the federal and state governments want to make sure you are paying your fair share of taxes for the year this tax gets implemented on your income tax return.

Tax payers may be eligible to deduct qualified tuition and related school expenses that were paid for themselves, their spouse, or a dependent. Expenses paid by scholarship or grant are not considered deductible. There are a few ways that this deduction may be applied to your tax return, so let one of our associates that is well versed in this matter assist you.