GENERAL
Q: Why do you typically communicate via email instead of the phone?
A: Documentation is vital to tax preparation, communication, and potential audits. I want to make sure I have written documentation of decisions we make and conversations we have. However, the phone is still a tool, and I will take notes from those conversations. All of this is done for everyone’s best interest.
Q: What’s the deal with engagement letter signatures?
A: Engagement letters must be signed by both spouses. Typically, the taxpayer is the one who selects the service level. However, if primary contact is with the spouse, they will likely be selected to choose.
SMARTVAULT
Q: What are the readable file formats for uploading to SmartVault?
A: Word, Excel, PNG, JPEG, and PDF. PDF is the preferred format. Exceptions to this would be financial statements (Excel) or large, list-type documents (Word).
Q: I don’t see the files I uploaded to SmartVault! Where did they go?
A: Do not be alarmed. In almost all cases, this means the files have been moved for our in-house organization needs. Ultimately, it is the client’s responsibility to have all of their original files saved by their own means.
Q: You told me a file was in SmartVault, but I don’t see it. What gives?
A: One of the quirks of the portal is that it doesn’t show the files without you clicking into the folder where they reside. Click on the file I mentioned in my communication and the document should be there.
Q: Where will my tax returns be?
A: Upon completion of tax return preparation, one or two copies of your tax returns will be uploaded to the portal. One copy (Client Copy) is for your records only. A second copy (Filing Copy) is provided if there are additional responsibilities for you to complete. You will receive an email that details this once your returns are completed.
TAX RETURN PROCESS
Q: Do you make tax payments for me?
A: No, but I can set up direct debit via a checking account, but payments are ultimately handled by you, the taxpayer.
Q: Will I get confirmation that my return has been e-filed?
A: Not typically. Once you sign the e-file authorization forms, I will e-file the returns. Unless you hear about an issue from me, you can rest assured that they have been filed and accepted.
Q: What are quarterly estimated taxes and why do I have to pay them?
A: The government mandates that your taxes must be paid in throughout the year or you could be subject to penalties and interest. Most taxpayers are covered by their withholding. However, some are not for reasons like too little withholding from their paycheck or additional income that does not have taxes withheld. If there is a shortfall, quarterly estimated taxes fill the gap.
EXTENSION PROCESS
Q: Why are we filing an extension?
A: This could be for multiple reasons. Sometimes your documents are not available by the original deadline, sometimes more time is needed to make sure the return is completed properly. Regardless of the reason, extensions allow for additional time to prepare an accurate return. It also allows for time to make sure we get the most beneficial result.
Q: Are extensions bad or do they put me at risk for an audit?
A: This is a common misconception, but no, extensions do not do this.
Q: Is there an additional fee for extensions?
A: No, I will not charge additional fees. Extensions are part of whichever service level you choose.
Q: Is the extension for filing or for payment of the taxes?
A: Extensions are for filing the taxes but not for payment of the taxes. Tax due is always required to be paid by the original due date.
Q: What should I pay with the extension?
A: Like many things with taxes, it depends. When we make the decision to extend, I will reach out with the options for calculating the extension payment.