FREQUENTLY ASKED QUESTIONS
GENERAL
How often should I meet with my Certified Public Accountant (CPA)?
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At least once a year for tax filing, but quarterly for business owners and those with complex financial situations.
How can a CPA help me grow my business or wealth?
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CPAs help with cash flow management, tax-efficient investment strategies, financial forecasting, and compliance planning.
What services do CPAs offer beyond tax preparation?
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Tax planning, bookkeeping, payroll, business advisory, audit support, financial planning, and estate planning.
How do tax laws change year to year?
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Tax laws evolve with legislation, so regular updates and strategic adjustments are essential.
PERSONAL TAXES
How can I lower my personal tax bill?
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Tax planning, Maximize deductions, contribute to tax-advantaged accounts (401(k), IRA, HSA), use tax credits, and invest in tax-efficient portfolios.
Should I itemize deductions or take the standard deduction?
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If your deductions (mortgage interest, medical expenses, charitable contributions) exceed the standard deduction, itemizing may be beneficial.
Are my charitable donations tax-deductible?
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Donations to qualified 501(c)(3) organizations are deductible if you itemize deductions. Consider donor-advised funds for tax-efficient giving.
How do I report side income or freelance work?
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You must report self-employment income and may need to make estimated tax payments. Business-related expenses can be deducted.
What should I do if I receive an IRS audit notice?
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Remain calm and consult a CPA. Keep detailed records, respond promptly, and provide only requested information.
BUSINESS RELATED
What type of business entity should I choose for tax purposes?
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The right structure (Sole Proprietorship, LLC, S-Corp, C-Corp, Partnership) depends on tax liability, liability protection, and long-term goals.
Do I need to pay estimated taxes?
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If you’re self-employed or a business owner, you likely need to make quarterly estimated tax payments to avoid penalties.
What records should I keep for tax purposes?
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Income statements, expense receipts, payroll records, bank statements, invoices, and tax filings should be maintained for at least 3-7 years.
How does tax planning help my business?
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Helps minimize liabilities, optimize cash flow, take advantage of tax credits, and ensure compliance with IRS regulations.
What are my payroll tax responsibilities?
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Businesses must withhold and pay Social Security, Medicare, and unemployment taxes, plus issue W-2s or 1099s for employees and contractors.