Here at Nottingham & Associates we work hard to provide the best possible service to our clients. We stay up to date on the most current tax laws in order to insure that you receive all of the tax benefits that you deserve. Our goal is to complete all work in a timely manner while keeping your satisfaction a top priority.
Since we work with individuals and small businesses, we understand tax and accounting issues are not your most important concern. Our job is to make the filing of your tax returns as simple and as quick as possible. An initial phone interview can help us figure out exactly what it is that we need from you.
1099-Misc forms are used to report amounts paid to independent contractors. This means that you performed a service for a certain price and got paid directly for your services. Companies pay independent contractors this way to avoid paying payroll taxes and the associated fees that come with adding an employee to their payroll. Which in turn means that the recipient is required to pay these taxes directly on their own tax return. To avoid being surprised by a high tax liability see us early to make sure that we can help you plan ahead.
Self employed individuals pay self employment tax because, unlike workers who receive a W-2, their income does not get taxed directly. Since the federal and state governments want to make sure you are paying your fair share of taxes for the year this tax gets implemented on your income tax return.
The forms 1099-A and 1099-C are issued when a cancellation of debt occurs, usually involving a foreclosure. When a debt is discharged the lender is required to provide the debtor with a form 1099-C. A 1099-A is issued when a lender cancels the debt in connection with the acquisition of property. However in most situations only the 1099-C needs to be issued as this is the form that gets reported on your income tax return.
Tax payers may be eligible to deduct qualified tuition and related school expenses that were paid for themselves, their spouse, or a dependent. Expenses paid by scholarship or grant are not considered deductible. There are a few ways that this deduction may be applied to your tax return, so let one of our associates that is well versed in this matter assist you. For a list of qualified expenses please visit here. (irs.gov/publications/p970/index.html)
There are many complicated issues to deal with when handling an estate or trust. In general you will need to obtain a tax identification number for the new entity, transfer all investment assets to the new entity, prepare a tax return at year end, and issue trust tax information forms to all the beneficiaries. It is very important that you meet with one of our tax advisors early on.
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!