What do I do if I receive a notice from the IRS about
Don’t panic! the first thing to do is carefully read
the notice—to determine why it was sent, what the IRS
is requesting, and what they want you to do. It may be
nothing of importance; it may even be a notice in your favor.
After reading it you should bring it to our attention.
What is the difference between a C and an S
A C Corporation and an S Corporation are exactly the same in
respect to liability protection. The difference is in how you
are taxed. A C Corporation has what is referred to as a
double taxation. First the corporation is taxed, and secondly
the dividends are taxed on the shareholders’ tax
returns. An S Corporation is not taxed at the corporate
level, only at the shareholder level. Most small businesses
are eligible to file as S corporations. But the appropriate
election must be made.
What do I need to bring when I am having my taxes
Following is a list of the more common items you should bring
if you have them.
How do I find out about my refund?
- Wage statements (Form W-2)
- Pension, or retirement income (Forms 1099-R)
- Dependents' Social Security numbers and dates of birth
- Last year's tax return
- Information on education expenses
- Information on the sales of stocks and/or bonds
- Self-employed business income and expenses
- Lottery and/or gambling winnings and losses
- State refund amount
- Social Security and/or unemployment income
- Income and expenses from rentals
- Record of purchase or sale of real estate
- Medical and dental expenses
- Real estate and personal property taxes
- Estimated taxes or foreign taxes paid
- Cash and non-cash charitable donations
- Mortgage or home equity loan interest paid (Form 1098)
- Unreimbursed employment-related expenses
- Job-related educational expenses
- Child care expenses and provider information And any other
items that you think may be necessary for your taxes.
best way is to use the Check Your Refund link from the
Resources pages of our website! To look up the status of your
federal or state refund, you will need your social security
number, filing status, and exact amount you’re
How long do I keep my records and tax
You should keep your records and tax returns for at least 3
years from the date the return was filed or the date the
return was required to be filed, whichever is later. It is
recommended that you keep these records longer if
What are the consequences of early withdrawals from
my retirement plans?
withdraw money from a 401(k) or an IRA before age 59 ½,
the distribution is taxable and there is a 10% penalty on the
taxable amount. The main exceptions that let you
withdraw money early without penalty are as
retirement plan distributions if you separated from service
in or after the year you reach age 55 (does not apply to
made as a part of a series of substantially equal periodic
payments (made at least annually) for your life or the joint
lives of you and your designated beneficiary.
due to total and permanent disability.
due to death (does not apply to modified endowment contracts)
retirement plan distributions up to (1) the amount you paid
for unreimbursed medical expenses during the year minus (2)
7.5% of your adjusted gross income for the year.
distributions made to unemployed individuals for health
distributions made for higher education expenses.
distributions made for the purchase of a first home
(up to $10,000).
due to an IRS levy on the qualified retirement plan.
distributions to reservists while serving on active duty for
at least 180 days.