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Frequently asked questions
Straight answers about the process, our fees, and what to actually expect.
About Enrolled Agents
An Enrolled Agent (EA) is the highest credential awarded by the IRS. EAs are federally licensed to practice in all fifty states and, unlike CPAs and attorneys who may work across many disciplines, we focus exclusively on taxation. That licence also gives us unlimited rights to represent you before the IRS on audits, collections and appeals.
If your return is simple, you may be perfectly well served. But once self-employment income, rental property, investments or multi-state work enter the picture, the stakes rise. An Enrolled Agent holds the IRS’s highest credential and can represent you directly if anything is ever questioned — which an unlicensed preparer cannot do.
Yes. Enrolled Agents are federally licensed to prepare and file corporate returns, along with partnership, S-corporation, payroll and non-profit filings.
We are an Enrolled Agent practice that bundles bookkeeping, payroll and tax work into one relationship. That means professional-grade software, real-time reporting you can actually use, and IRS problem resolution handled in-house rather than referred out.
Filing Your Taxes
You are required to file once your gross income passes the threshold for your filing status, and that threshold changes year to year. There are also situations — self-employment income, certain credits, marketplace insurance — where filing is required or strongly in your favour even below the threshold. Call us and we can tell you in a few minutes.
Technically the IRS has no statute of limitations on unfiled returns. In practice, IRS policy is to request the most recent six years of unfiled returns to bring a taxpayer back into good standing. We can pull your transcripts and confirm exactly which years are outstanding.
This is more common than you would think, and it is solvable. We request Wage and Income Transcripts from the IRS, which show the W-2s, 1099s and other forms reported under your Social Security number. Expenses are then reconstructed from bank and card statements, invoices and receipts.
Yes. We work with clients remotely through a secure portal — you upload documents, we prepare and review the return, and everything is finalised electronically. No office visit required unless you would prefer one.
Start by gathering twelve months of bank and credit card statements along with any receipts you have. Unreconciled records are the leading cause of inaccurate filings, and accuracy-related penalties can reach 25 percent, with a minimum penalty around $525. We clean up the books first, then file from numbers you can stand behind.
Back Taxes & IRS Problems
Filing voluntarily is almost always the better path. It stops failure-to-file penalties from continuing to accrue, demonstrates good faith, and substantially reduces the risk of the matter being treated as a criminal one. The IRS is far more accommodating with taxpayers who come forward on their own.
Act immediately. Payroll withholdings are trust fund taxes — money held on behalf of your employees — and the IRS pursues them more aggressively than any other liability, including personally against owners and officers. File every outstanding return even if you cannot pay in full, and speak to an EA today.
Yes, but not without warning. The IRS must first issue a Notice and Demand for Payment, and then a Final Notice of Intent to Levy giving you at least thirty days. That thirty-day window is also your opportunity to request a hearing — which is exactly when you want representation in place.
Generally the IRS has ten years from the date a tax was assessed to collect it. There is a separate, shorter period for assessing additional tax. Both can be extended or paused by events such as bankruptcy, an offer in compromise, or time spent outside the country.
Currently Not Collectible, or CNC, is an IRS designation for taxpayers whose finances are such that paying would prevent them from meeting basic living expenses. While in CNC status, active collection stops. Interest continues to accrue and the status is reviewed periodically, but it can provide real breathing room.
A rejected offer is not the end of the road. Offers are frequently declined over valuation or documentation issues that can be addressed on appeal, and where an offer genuinely does not fit, an installment agreement, penalty abatement or Currently Not Collectible status may. Let us review the rejection letter with you.
A missed payment puts the agreement into default within about thirty days. Moving quickly usually allows it to be reinstated before the IRS terminates it and resumes enforcement such as levies or wage garnishment. The sooner you call, the more options remain.
Most IRS employees are, in general, good people doing a difficult job. That said, their role is to collect revenue, not to identify every relief programme you might qualify for. Having experienced representation means someone in the conversation is looking out specifically for your interests.
Deductions & Tax Planning
Yes. All winnings are reportable as income whether or not the casino or sportsbook issues a form. You may deduct the amount wagered against winnings on individual bets, and gambling losses can offset winnings if you itemise — but only up to the amount you won, and only with adequate records.
Depreciation lets you recover the cost of a business asset across its useful life rather than deducting it all at once, which can lower your tax bill over several years. Which method applies, and whether an immediate write-off under Section 179 or bonus depreciation is better, depends on the asset and your wider position. It is worth getting right.
Only if your total itemised deductions exceed the standard deduction — and since the standard deduction was raised, most Americans no longer itemise. Donations still matter, but bunching several years of giving into one tax year is often what actually produces the benefit.
The reliable levers are unglamorous: track business mileage properly (the standard rate is $0.70 per mile), review whether incorporating makes sense if you are self-employed, fund retirement accounts, and sit down for a mid-year planning conversation rather than a March post-mortem. Most real savings come from decisions made before the year ends.
No — and this is one of the most persistent misunderstandings in tax. Brackets are marginal, so only the income above each threshold is taxed at the higher rate. Deliberately earning less to drop a bracket always leaves you with less money. Reduce taxable income or use credits instead.
Probably not. State income tax generally follows where you live and where you perform the work, so continued withholding for your former state is likely incorrect. We can help you stop it going forward and recover what was withheld in error through a non-resident return.
You can, but filing jointly usually produces a better overall result. The targeted fix is an Injured Spouse Allocation, which separates your income, withholding and credits from your spouse’s so your share of the refund is protected rather than applied to their debt.