Latest News on Denver Accounting & Taxes

When it comes to your tax return, everyone wants it as quickly as possible. Electronic filing, or e-filing involves your Denver tax preparer completing the preparation of your tax return and then submitting it to the IRS via the Internet. Did you know that if you file your tax return by mail, it can take up to eight weeks for it to be processed? By E-Filing with direct deposit, you can normally get your refund in days instead of several weeks. It’s also more comforting when you get electronic proof of when a return is E-filed instead of leaving it to the chance of getting lost in the mail. It also makes keeping records and tracking your taxes a lot easier. If there is ever a question about your taxes, or an amendment that has to be made, you won’t have to sift through mounds of paper which saves a lot of time and frustration.

The Denver tax experts at Bloch, Rothman and Associates have been filing returns electronically since 1996. It is free to you – we do not charge additionally for this service. When E-Filing, our accountants in Denver get this information within hours and can then adjust the return and file it again right away. This can take months with a paper filed return. E-Filing can help avoid many problems down the road. Give the Denver accountants at Bloch, Rothman a call about E-Filing your tax return and learn more about the service and its benefits. 

Did you know that when financially unable to pay your tax debt immediately, you can make monthly payments through an installment agreement with the IRS? As long as you pay your full debt, you may be able to reduce fees and interest or avoid the fee with setting up the account.

Who can apply for an installation plan online?

• Those who owe less than $50,000 or less in combined individual income tax, penalties, and interest can apply online
• Business who owe less than $25,000 in payroll taxes and have filed all required returns

What should you bring to your Denver tax service when setting up an installation plan?

• An idea of what you can afford each month
• A copy of your tax returns
• A checking account number and routing number if you’re setting up automatic withdrawals

Ask your tax professional about making an installment plan as we can usually negotiate a lower monthly payment that fits your budget. If you aren’t accepted for the IRS’s criteria for automatic acceptance of an installment agreement, it gets very complex – the help of a professional tax service is most likely required. Bloch, Rothman & Associates, Ltd. has been helping Denver clients with their IRS collection issues for over 20 years - contact us for more information on IRS collections. 

Getting the most out of your tax refund can be a little confusing at points. With the long list of deductions the IRS provides, it’s time consuming finding those ones that could apply to you. Here is a list of possible deductions you can make that may surprise you:

• You can deduct medical expenses that exceed 7.5% of your adjusted gross income. This can also apply to quitting smoking and deducting expenses for smoking cessation programs such as nicotine patches
• Out of pocket car expenses when using a car for medical reasons, including parking, tolls, and fuel
• Cost of meals at a hospital if the principal reason of you being there is to get medical care
• If you have moved because of a new job, you may be entitled to a moving expense deduction if you meet the distance guideline stated by the IRS. This even includes expenses for moving your pet too as it is considered a possession
• If the weather in Denver has negatively affected you this year, you may be entitled to a casualty-loss deduction on your loss
• The cost of pregnancy test kits are also deductible and is specifically listed in the tax code
• Transportation to donating an organ: An organ donor can deduct both the medical expenses as well as travel expenses associated with the donation
• Lead based paint removal. If you have lead paint in poor repair in a house that is in reach of a child, the removal is tax deductible. However, make sure you don’t classify this as a medical expense
• Regular physical examinations and diagnosis. You do not have to be ill at the time of the appointment.

Consult your Denver tax service to ensure you maximize the refund of your hard earned money.

Charitable donations are a great way to help lower your tax bill while helping others. However, it’s imperative that you know the basics of charitable donations to ensure you get a fair tax deduction for them. Here are a few guidelines to keep in mind when making a decision to contribute and how to compile them for your Denver tax planning service:

Verify the organization is a qualified

According to the IRS, this means that an organization must be “Organized and operated only for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals.” Keep in mind this does not include individuals, political parties, or organizations like sports leagues.  

Keep records of your donations

To claim a deduction, you must have a bank record, receipt, or payroll deduction. If you are making a contribution of more than $250, make sure you have a written acknowledgement from the organization as well.

Understand the value of your contributions

When donating clothing or other items, the IRS states that the items must be in at least “good used condition.” The amount you get to deduct is the amount that it would sell for in a second hand store, not the amount you paid originally. Make sure to get a receipt from the organization when you make a donation and hang on to it until it’s time to file your taxes. The same goes for donating a car. You can only deduct the amount the organization sells the car’s parts for. However, if the organization uses the car as is, you can deduct the fair market value. 

Making sure that you’re getting the best deductions for your contributions can be tricky, that’s why it’s important to rely on Denver tax resources for maximizing your return. 

If you are looking to save the most money on your taxes, make sure to begin protecting your business during the start of the fiscal season. Here are some of the Denver tax planning steps that you can take in order to protect your hard earned revenues.

Start organizing your records now

A great way of protecting your revenues and business from audits is to retain a pattern of records. If you don’t have records of your payouts, then you may end up paying much more in taxes than ever.

Understand the new laws of investment, losses, and depreciation so you can take advantage of all deductions due to you

There are always new laws every tax year about the deductions that you can take, and it is not easy to review them all. Tax litigation services may be able to help you do this in an efficient way. Either way, do not overlook tax law in any year - the details could save you lots of money.

Set up your organization so that you can receive benefits

The way in which your business is set up is the only thing that is keeping you from profitability after taxes. If you do not know the differences between the types of companies that you can own, then consult with a tax pro.

Preparing for your financial future starts today, and sometimes you may need a bit of help. The right Denver bookkeeping services will give you the ability to maximize all deductions without taking your time away from focusing on your business. It’s easy to start your preparation today with the right help.