FAQ

• 1. What is the difference between CPA’s, enrolled agents, and accountants?
  2. What do I need to do before I see you?
  3. I’m starting a business when should I see a CPA?
  4. How much are your fees?
  5. LLC, LLP, Partnership, Corporation, S-Corporation….what does all this mean?
  6. I just started a business, how do I pay myself?
  7. Can you help me with my bookkeeping or do I need to hire a bookkeeper?
  8. I received a letter from the IRS what do I do now?

  1. What is the difference between CPA’s, enrolled agents, and accountants?

     CPAs must pass a comprehensive exam covering all aspects of accounting. In addition relevant work experience, a background check and an ethics exam must be completed before the state will issue a CPA certificate. To stay current on issues, 80 hours of continuing education are also required every two years. In California, accountants who are not certified do not have to meet any requirements.

  2. What do I need to do before I see you?

     Since we deal with individuals and small businesses, we understand tax and accounting issues are not your most important concern. We make your record keeping as simple and quick as possible. We will take the time to answer all of your questions so bring what you have and we will get you list of whatever you are missing.

  3. I’m starting a business when should I see a CPA?

     Early! In our free initial consultation we can help you figure out what type of entity you should form and what the tax advantages are for each entity type. We also provide Quickbooks training so you can keep track of your business correctly from the start. Jody and Aaron have years of experience running successful businesses we can give you advice on many aspects of your company.

  4. How much are your fees?

     The initial consultation is always free.  Like any service the cost varies based on the time it takes.  As a guide, most personal tax returns average $275-$450.  However, if you own a business, have many investments or some other tax complexity your fees will be higher.  Please give us a call and we can discuss your situation.

  5. LLC, LLP, Partnership, Corporation, S-Corporation….what does all this mean?

     When you are starting a business you can choose to be either or neither one of these. In general LLC’s, LLP’s, Partnerships and S-Corporations are flow-thru entities meaning they are not taxable entities but that the net income flows thru to the owners and they pay tax on their personal returns. C-Corporations are taxable entities and pay tax on their net income. There are several other difference between these entity types and depending on your situation we can help you decide what will work best for you.

  6. I just started a business, how do I pay myself?

     This is a good problem to have if you are asking this question. The answer depends on what type of entity you decided to be when you started. If you are a C-Corporation or an S-Corporation you will need to get set up on payroll and pay yourself a paycheck. If you are an LLC, Partnership or sole proprietor you can usually cut yourself a regular “draw” check.

  7. Can you help me with my bookkeeping or do I need to hire a bookkeeper?

     We can help you. Depending on how much time you want to devote to bookkeeping we can set up a plan that works for you. If you own Quickbooks and would like to do it yourself we can train you how to use Quickbooks, and then we will review it for you once a month or once a quarter. If you want nothing to do with it we have a bookkeeper on staff that can do everything for you, and we will review the monthly reports with you to keep you on track.

  8. I received a letter from the IRS what do I do now?

     It’s a moment any taxpayer dreads. An envelope arrives from the IRS — and it’s not a refund check. But don’t panic. Many IRS letters can be dealt with simply and painlessly.

     Each year, the IRS sends millions of letters and notices to taxpayers to request payment of taxes, notify them of a change to their account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return. Each letter and notice provides specific instructions explaining what you should do if action is necessary to satisfy the inquiry. Most notices also give a phone number to call if you need further information.

     Most correspondence can be handled without calling or visiting an IRS office, if you follow the instructions in the letter or notice. However, if you have questions, call the telephone number in the upper right-hand corner of the notice, or call the IRS at 1-800-829-1040. Have a copy of your tax return and the correspondence available when you call so your account can be readily accessed.

     Before contacting the IRS, review the correspondence and compare it with the information on your return. If you agree with the correction to your account, no reply is necessary unless a payment is due. If you do not agree with the correction the IRS made, it is important that you respond as requested. Write an explanation why you disagree, and include any documents and information you wish the IRS to consider. Mail your information along with the bottom tear-off portion of the notice to the address shown in the upper left-hand corner of the IRS correspondence. Allow at least 30 days for a response.

     Sometimes, the IRS sends a second letter or notice requesting additional information or providing additional information to you. Be sure to keep copies of any correspondence with your records.  If you’ve received a notice and are confused about what to do next, please contact us and we can help!

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Your Staff

Jody Nottingham received her Bachelor of Science degree in Accounting from San Diego State University. She has over 20 years experience in the fields of accounting and taxation. more...

Before joining Nottingham & Associates, Aaron Wedeking specialized in taxation of midsize businesses at RSM McGladrey, one of the nation’s largest CPA firms. Aaron has done business tax consulting and worked as an intermediary on several business acquisitions. more...

Nice Things People Say

Jody Nottingham and her team have done an outstanding job minimizing our taxes, efficiently handling every question we have and making sure we are not on the radar of the tax authorities. It is a tremendous comfort knowing we are well taken care of so we can run our business. Jody, we can’t thank you enough!
— Mike & Cindy Stromsoe, Stromsoe Insurance Agency