Latest News on Denver Accounting & Taxes

The ongoing coronavirus pandemic forced many Americans to change their daily routines and activities. As individuals attempted to social distance, one major shift occurred throughout the country for a large portion of its workforce. In an effort to slow the virus spread, many companies elected to have their employees work from home. Virtual meetings replaced gathering at the office as everything from church to school shifted online. These events forced a rapid adjustment to the new normal as dinner tables transformed into school desks, extra bedrooms morphed into offices, and enhanced internet connectivity became a priority.

These changes may also have an impact on your upcoming 2020 tax filings, but a thorough review of the parameters should be completed prior to opting in on any potential deduction. The biggest issue focuses on an allowed home office deduction as roughly 40-percent of Americans completed paying jobs from inside their residence. However, just because you are performing work duties from the house doesn’t necessarily translate into qualifying for the deduction.

Home Office Deduction

The home office deduction accounts for certain expenses attributed to individuals who use their residence to conduct business. Both homeowners and renters can take the deduction, provided they meet the qualifying characteristics, but a few calculations must be completed. First, individuals must determine how much space is used for the home office. For many, this is simply the square footage of a room but in the event another area is used, the space should be measured appropriately versus that of the entire home. The deduction applies to the same percentage of mortgage interest, insurance, and potentially other items for that area.

Qualifying Characteristics

Before you get too excited, know employees are not eligible for the deduction. Simply because it is safer for you to currently be conducting business for your job at home, doesn’t necessarily qualify you for the deduction. This caveat likely disqualifies a majority of those who have been forced to transition into working from home versus showing up on the job site daily. 

Those who may take the deduction are self-employed or freelance, contracted labor employees working on tasks from home. These individuals likely were taking the same deduction prior to the coronavirus outbreak, but any new business owners who are now using their home as a base for their businesses would also be eligible.
Impact

The bottom line is many employees who were forced to work from home during 2020 are likely not eligible for the deduction or expenses associated with their current working environment.

If you’re ready to file a return or need help determining exactly which potential credits and deductions may apply to your given situation, then let the tax professionals at Bloch Rothman and Associates assist you today. In addition to providing answers to your deduction or credit tax questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a quality tax service, our group can also complete all types of returns or answer any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!

Finding out that you owe the Internal Revenue Service (IRS) money can be a startling revelation. Whether the result of too little tax paid within a given year, owing back taxes, or any other reason, having someone on your side that has experience dealing with IRS can be extremely helpful. Not only may they already have an established rapport with someone on the other side but past interactions, outcomes, and negotiations with individuals at the IRS may also help in your situation.

People fall behind on their taxes for a variety of different reasons but fortunately, there are steps which can be made in order to help individuals regain control of their financial situation. In the event that you owe any amount to the IRS, there are steps to take in order to help resolve the situation.  

Communication

The IRS mails notification letters to individuals who owe money, so any phone calls (unless arranged ahead of time between both parties) are typically scams. However, should you receive a letter, examine it closely to see what amount is being addressed and the reasoning. If unclear, providing a copy to your tax professional is a great first step in the process. Establishing an open line of communication, instead of ignoring the notice, is good practice and can help move the entire process along.

Verify

Once you understand where the resulting amount is derived from then steps can be made to ensure the figures have been calculated correctly. Remember, the IRS can be prone to occasional mistakes, so verifying the amount is legitimate should be of importance to you.

Plan

After you have verified the amount owed, establishing a plan for repayment is next. First, taxpayers should contribute any amount they can muster as soon as possible. Not only will paying quickly help to eliminate fees or added interest, but it also displays a willingness to pay what is owed. Sometimes, correspondence may also be issued in order to abate some of the associated penalties.

Assistance

There are also payment plans, garnishments, and other measures which may be levied in order to assist individuals in repayment. If it is determined that the amount is not collectable at the time of notice, the IRS may even pause collection proceedings until a later date but open communication throughout the process is key to receiving assistance.

If you’re ready to file a return or need assistance with taxes owed, then let the professionals at Bloch Rothman and Associates assist you today. In addition to providing answers to your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a quality tax service, our group can also complete all types of returns or answer any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!

As the 2020 tax filing season begins, a majority of individuals are likely to act earlier in hopes of getting a refund back as quickly as possible. Doing so would not only put a little extra money in their pocket during the first quarter of 2021, but it would also avoid having to file an extension or worry about the upcoming return for months.

There are always a few steps on any tax prep checklist and following these procedures can help save you time and money. In addition, the filing process for next year may be a little bit different than in the past - depending on when you filed last year - due to the ongoing coronavirus pandemic. Without another delay in the filing date anticipated, most returns will be submitted prior to mid April. Fortunately, there are a few actions individuals can take in order to ensure their returns are processed quickly, leading to a faster refund.

E-Filing

An overwhelming majority of accounting firms and tax professionals are required to efile tax returns on your behalf. This is the safest, fastest, and most effective means of submitting your return. Doing so ensures that the information is quickly received, processed, and any refund amount distributed in a timely manner.

Refund Method and Timing

There are typically two different ways individuals may receive their refund amount - paper check via mail or direct deposit. Although the time frame varies for both state and federal returns, electing to have your refund electronically deposited into the bank account on file is quicker. You’ll want to be sure that all of the banking information (routing and account numbers) are correct on your return, prior to filing, in order to avoid any miscues and receive your money fast as possible.

Refund Locator

One day after filing, individuals can check the IRS online tool for tracking the processing and refund distribution specific to your return. By providing the matching social security number, filing status, and exact amount to be distributed, individuals can track their refund and see precisely when it should arrive. If any problem is discovered here, then contacting your filing agent is a good next step to check for a cause of the delay.

Should you need help filing taxes, locating your refund, or are in search of answers to tax related questions, then let the tax professionals at Bloch Rothman and Associates assist you today. In addition to providing answers for your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!

Every individual’s situation is going to be unique which requires different forms and documentation for each tax return. Depending on your personal status, work, income, investments, and other factors the amount of necessary forms and documentation in order to file an accurate return varies. In addition, companies, partnerships, and sole proprietorships all require separate backup for their reported figures. This information is critical in order to file an accurate return and once turned into the Internal Revenue Service (IRS) should be kept for some amount of time - but how long?

The IRS typically audits returns filed within the past three years. However, there are rare instances where they may exceed this timeframe based on findings or a significant error. For this reason, it is best to not immediately destroy any of the information used to justify your return. In fact, you should probably find a safe place to store all of your backup data and other information for at least four years or longer, depending on the type of paperwork.
Tax Return

Tax returns should be kept for four years from the date of filing in order to either amend or support any potential audit from the IRS. In the event that returns farther back would be needed, there will likely be some type of indication prior to this period. For the average American, rotating your information in and out in this timeframe is proper practice.

Supporting Documentation

However, just because you are removing returns after four years doesn’t mean that all of the information should be discarded. Depending on the type of return being filed and the existing documentation, there may be longer limits for holding onto various forms and figures. For example, any depreciable assets should have records on file until the item is no longer used or in service. This helps to determine its impact on a return over the general four year time period and can assist your tax preparer with specific figures associated with these assets.

Any loans or mortgage information should also be kept until they are paid in full. Doing so ensures there is no question about the term limits, rates, and other figures which may be reported on a return - especially since these numbers transcend over multiple years.
Disposal

Once the time period expires for keeping these records, it is important to dispose of them properly. Much of the backup paperwork required for filling out a tax return has extremely sensitive information such as Social Security numbers, bank account information, and other demographics which may make it possible to steal your identity. Since this is the case, shredding all paperwork is recommended or some other method which ensures no one can access the information once it leaves your possession.

If you’re ready to file a return or need help determining exactly which potential credits and deductions may apply to your given situation, then let the tax professionals at Bloch Rothman and Associates assist you today. In addition to providing answers to your deduction or credit tax questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues.

Along with providing a quality tax service, our group can also complete all types of returns or answer any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!

Tax time can be a stressful period for everyone who is required to file. Not only is having to gather all of your required paperwork together often a hassle, but some worry about the financial impacts once a return is completed. As tax laws constantly change, keeping up to date and ensuring that your refund remains similar or a previous amount owed is to be expected could change annually. This unknown often adds more stress, but finding and building a good working relationship with an accountant to assist you with filing can have multiple benefits. 

Whether completed prior to the deadline, April 15 in most years, or you secure an extension of time to file your tax return, there are some characteristics individuals should pay special attention to when working on completing their return. Not only can having a trusting relationship aid in eliminating some of the stress associated with filing, but knowing you can approach your accountant with any tax related issue helps in multiple facets of life. Pay special attention to each of these characteristics before and during any filing period. 
Credentials

There are multiple different credentials which can apply to those responsible for filing taxes on another individual’s behalf - Enrolled Agents (EA), Certified Public Accountants (CPAs), and Tax Preparers. Professional licenses are required for both EA and CPA individuals, but all Tax Preparers must possess a PTIN (Professional Tax Identification) number. Be sure the individual you are trusting with tax information falls under one of these particular categories.

Personal Information

No matter the reason or amount of paperwork associated with any filing, all records - including the return itself - are property of the submitting party. For example, once submitted, no accountant or affiliated group should deny an individual a records request. Typically, all forms associated with a filing will be returned upon completion, but in the event someone needs a copy of a certain filing or form then one should be provided, although there may be an associated fee.

Communication

Open communication throughout the entire process and beyond should be made a priority. From your introduction to organizing paperwork and scheduling, keeping an open line of communication via telephone and email is critical to fling a return.

Fee Structure

Never should a charge for services rendered be related to any potential refund received. Established and qualified professionals generally have a certain rate for associated returns dependent upon the amount of information required for a filing.

If you are in need of a qualified tax professional for your personal information or the finances of a business then let the tax and experts at Bloch Rothman and Associates assist you today. In addition, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits from other entities besides the IRS, or any other personal or corporate wealth management issues. Along with providing a quality tax service, our group can also complete tax returns or answer any other factors associated with financial issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us today. Available for all of your tax needs and filings, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!