Follow this link to a checklist you can use to assist you in gathering your documents.

Follow this link to a checklist you can use to assist you in gathering your documents.

Most returns will be processed within 21 days if electronically filed. Returns that are paper filed are usually processed within eight weeks. Many factors affect the timing of your refund, and it is possible your refund may take longer.

Taxpayers claiming the Earned Income Credit, Child Tax Credit, Education Credits, and other credits may see delays longer than 21 days in their refund time if the IRS cannot verify their data.

• Keep for less than a year. Bank deposit, and credit card receipts until you reconcile them with your monthly statements. Once you’ve done that, shred the paper documents or securely trash electronic files unless you need them to support your tax return. Keep insurance policies and investment statements until new ones arrive.
• Keep for a year or longer. Hold on to loan documents until the loan is paid off. That will often be for more than a year. If you own a car, hold on to the title until you sell it. If you have investments in stocks, bonds, and mutual funds, for example, keep the purchase confirmations until you sell so that you can establish your cost basis and holding period.
• Keep for seven years. If you fail to report all your gross income on your tax returns, the government has six years to collect the tax or start legal proceedings. To be on the safe side, keep all tax records for at least seven years.
• Keep forever. Records such as birth and death certificates, marriage licenses, divorce decrees, Social Security cards, and military discharge papers should be kept indefinitely. Also, hold on to any defined-benefit plan documents, estate-planning documents, life insurance policies, and an inventory of what’s inside your bank safe deposit box.

You can also see the IRS Guidelines for how long to keep records here

If your Social Security number is compromised and you know or suspect you are a victim of tax-related identity theft, the IRS recommends these actions:

• Respond immediately to any IRS notice: Call the number provided and our office.
• If your e-filed return is rejected because of a duplicate filing under your Social Security number, or if the IRS instructs you to do so, complete Form 14039 attach it to the back of your completed paper tax return and mail it to the IRS location based upon the state you reside. If you prefer, you have the option to submit Form 14309 online and mail your paper return separately. Our office will contact you to prep for mailing if this happens after filing. · Visit Identitytheft.gov for steps you should take right away to protect yourself and your financial accounts.
• If you are a victim of tax related identity theft the IRS will issue an IP Pin and mail it to you automatically. Please keep this important number. You will receive a new IP Pin every year.
• All taxpayers who can verify their identities are eligible for an Identity Protection PIN. The IP PIN is a 6-digit number that offers additional protection for your Social Security number on your tax return.
• To obtain an IP PIN, use the Get an IP Pin tool to opt into the program. If you already have an IRS account, enter your username and password. If not, you must pass an identity verification process to create an account and request an IP PIN.

You can get an IP PIN here

You can find Form 14039 here

You can upload Form 14039 here

You should first file form 15227, Application for an IP Personal Identification Number. You must have:

1. A valid Social Security number or Individual Taxpayer Identification Number
2. An adjusted gross income on your last filed return below $79,000 for Individuals or $158,000 for Married Filing Joint.
3. Access to a telephone

The IRS will use the telephone number provided on Form 15227 to call you and validate your identity. Once they verify your identity, you will receive your IP PIN via the U.S. Postal Service usually within four to six weeks.

If you’re unable to verify your identity online or with the Form 15227 process or you are ineligible to file Form 15227, you may make an appointment for an in-person meeting at a local Taxpayer Assistance Center. Please bring one current government-issued picture identification document and another identification document to prove your identity. Once we verify your identity, you will receive your IP PIN via the U.S. Postal Service usually within three weeks.

You can find Form 15227 and apply for an IP Personal Identification Number here

You can contact your Local IRS Office here

Follow this link to review a list of common business expenses. While you may not see all expense listed, a business expense is anything that is ordinary and necessary to complete your job.

It depends. Self Employed business owners with profit may be able to take the home office deduction on their Schedule C. Other owners, such as Corporation owners, must use an accountable plan through the Corporation.

An accountable plan allows an employer to reimburse employees on a non-taxable basis when certain requirements are met. Accountable plan rules are detailed in Section 62(c) of the Internal Revenue Code. Publication 5137, Fringe Benefit Guide, contains helpful information related to this topic.

Qualified business meal expenses are deductible. Qualified meals are directly related to business meetings, and expenses directly related and necessary to attendance at a business meeting.

Business related entertainment expenses, including deductions related to entertainment facilities, are generally not deductible.

Following are some general guidelines:

100% Deductible

• Food for recreational employee events, such as holiday parties, summer picnics, or team-building events
• Food provided to the public to promote goodwill (e.g., snacks or coffee for customers)
• Food for events in support of a charitable cause
• Meals that are an essential part of your business function (for example, if you’re a food critic or food blogger)
• Meals provided to the employees for the convenience of the employer (e.g., dinner for employees who work late at the office)
• Meals included as taxable compensation to employees or independent contractors
• Meals sold to a client or customer

50% Deductible

• Business meals
• Meals provided in-office for meetings of employees, stockholders, agents, or directors
• Employee meals at a company cafeteria if the annual revenue of the facility is equal to or greater than the costs
• Food items, such as soda, coffee, or snacks, for employees
• Meals while traveling for work
• Meals at a conferences

Not Deductible

• Entertainment

In short, yes if you are self-employed. Travel expenses are ordinary and necessary expenses of traveling away from home for your business, profession, or job. You can’t deduct expenses that are lavish or extravagant, or that are for personal purposes.

Employees and shareholders cannot deduct travel or mileage expenses on their personal return. They should request reimbursement through their employer’s accountable plan if one exist.

If you give the worker detailed instructions on how work is to be done or train the worker to perform tasks in a certain way, the worker may be an employee. A subcontractor does not need or receive detailed instructions or training on how the work should be done.

Facts that provide evidence of the degree of control and independence fall into three categories: 1. Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job? If yes, they are an employee. 2. Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.) If yes, they are an employee. 3. Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?, If yes, they are an employee.

More information can be found at the IRS website: Independent Contractor or Employee?

It depends. The “pass-through” type of entity saves tax overall by eliminating tax at the entity level. Pass-through entity owners are taxed directly on their share of entity profits. Another pass-through advantage is that owners can take tax deductions for startup or operating losses, against their income from investments or other businesses.

No, self-employed individuals are prohibited from taking payroll.

Any owners, officers, and shareholders of a Corporation who provide services to the Corporation must be paid reasonable compensation in the form of wages. These wages will be subject to federal payroll taxes (including FICA and Medicare) both withheld from the employee and paid by the company.

Because an officer of a corporation is generally an employee with wages subject to withholding, corporate officers may question what is considered reasonable compensation for the efforts they contribute to conducting their trade or business.

Wages paid to you as an officer of a corporation should generally be commensurate with your duties. Refer to “Employee’s Pay, Tests for Deducting Pay” in Publication 535, Business Expenses for more information.

The Internal Revenue Service may determine that adjustments must be made to the income and expenses of tax returns for both the corporation and an individual shareholder if the officer is underpaid for services provided.

If you are unsure what you should be paid, you can visit the U. S Department of Labor Wage and Earnings Benefits for some guidance here