What is an enrolled agent?
An enrolled agent (EA) is a federally licensed tax practitioner who has technical expertise in the field of taxation and is empowered by the U.S. Department of the Treasury to represent taxpayers for audits, collections and appeals before all administrative levels of the Internal Revenues Service.
What are the differences between enrolled agents and other tax preparers?
Only enrolled agents demonstrate their competence in matters of taxation and report their hours of continuing professional education to the IRS. Enrolled agents are the only taxpayer representatives who receive their right to practice directly from the U.S. government (certified public accountants and attorneys are licensed by states and their licenses are state specific). Unlike attorneys and certified public accountants, who may or may not choose to focus on taxes, all enrolled agents specialize in taxation.
I received a 1099C what should I do?
Generally, if a debt for which you are personally liable is canceled or forgiven, other than as a gift or bequest, you must include the canceled amount in your income. However, exceptions to the general rule that canceled debt is included in income may apply. If you have received a 1099C we can work with you to determine if any of the exceptions apply to your situation.
I received a 1099A what should I do?
1099-A, Acquisition or Abandonment of Secured Property, if you do not make payments you owe on a loan secured by property, the lender may foreclose on the loan or repossess the property. The foreclosure or repossession is treated as a sale from which you may realize a gain or a loss. This is true even if you voluntarily return the property to the lender. You must report this income on your return unless certain exceptions or exclusions apply. We can work with you to determine if any of the exceptions apply to your situation.
How long should I keep my tax records?
Per the IRS “you must keep your records as long as they are important for any federal tax law.” Generally this means the later of 3 years from the date your return is filed or 2 years from the date the tax is paid or 6 years after the return is filed if income is under reported by more than 25% or Indefinitely if you failed to file a return or the return is false or fraudulent. There are exceptions to these rules if you have purchased a home, stocks or contributed to IRA’s or other retirement plans. You should keep these returns and records longer to determine the value of property later if you sell and what portion of your contributed funds were in after-tax dollars.
What charitable contributions can I deduct?
Both cash and property are generally deductible if donated to qualified organizations such as: Churches, non-profit schools, boy & girl scouts, veteran groups, Red Cross, Salvation Army, Goodwill, United Way etc. Note: all cash donations require a bank record or receipt.
Can I deduct medical expenses?
Medical and Dental expenses are deductible to the extent that they exceed 7.5% of your income. These can include: Insurance premiums, doctor and dentist fees, drug and alcohol treatment, hospital fees, prescriptions, lead based paint removal, medical devices, smoking cessation program cost, eye glasses, wheelchairs, hearing aids, and contacts to name a few.