ASK RALPH: March 2012

Thursday, March 29, 2012

If I file an extension can I delay paying tax?

Question - Ralph - I have a pretty simple question for you. If I file an extension for my taxes this year, since I know I am probably going to owe the IRS, can I also extend the time to pay the tax? I am really short on money right now and I simply cannot afford to pay them what I expect I will probably owe.

Answer: We get this question often this time of year. While you are able to file an extension to extend the time needed to file your tax return, your tax obligation is still due and payable by the tax deadline, which for the 2011 tax return season is April 17th. If you extend your return and file after the tax filing deadline the IRS will charge you both penalty for late payment and also interest on the amount you later report as due and payable. With all of this said, I still think it's wise to file an extension so you can avoid penalties for failure to file which can be great.

For more specific guidance on extension filing or to have Saggio Accounting+PLUS file an extension for you, please contact Ralph V. Estep, Jr., at 302-659-6560 or visit our website for more information at www.saggioaccounting.com

Tuesday, March 27, 2012

TurboTax for Preparation

Ask Ralph your question.

My significant other, Mike, is an over-the-road truck driver. Last year we bought a home; up to that point I prepared his tax returns myself but because of the home purchase I was not comfortable doing so. We ended up using Liberty Tax Service and were not at all happy with the results. The preparer had taken a course in preparing but actually worked in construction. We later found out that because we itemized (for the first time) there was a whole slew of deductions for which Mike qualified because of his employment but the preparer did not take. So this year Mike decided to ask coworkers for recommendations and was told to use TurboTax online; however, I am of the opinion that an automated online tax form is not going to help us find the deductions we should be using. Any thoughts?

Answer: This is a great question and one we get often. In life I have learned that you get what you pay for. I don't use TurboTax, but I think you can purchase it for about $50. You have already seen the results of going to a Tax Preparer with a "tax course" and the lack of experience when you took that route. Using a licensed Public Accountant is really your best option if you are looking for a professionally prepared tax return. In my case, I have a Master's Degree in Business and I have been preparing taxes for over 10 years. I am an expert in the tax field and I am certain that I know what questions to ask based on your significant other's job field. I would suggest you give us a try and see the difference that experience, education, licensure and professionalism bring. We welcome your call to schedule an appointment. We also offer a $35 discount for all new clients.

Thursday, March 22, 2012

Reasonable compensation for S corp shareholders

Wednesday, March 21, 2012

Pleased with Services!

Picked up my taxes today..very pleased (not that I have to pay but that's not your fault) but with the way they were presented to me and how fast and efficiently they were prepared. Thanks again. I will be recommending you to my friends.

Sunday, March 18, 2012

Fee Question - Moved from PA to DE

Question:
Hello. I moved to Delaware in September 2011 from Pennsylvania and need to have my 2011 taxes done, both federal and state. I sold some stocks, withdrew money from my Roth IRA. I normally did my own taxes, but with moving, selling stock, etc, I would rather have my taxes done by a professional. Is there any way to get an idea of an approximate cost range for having my taxes done?

Answer:

We do not quote specific prices because it's impossible to determine exactly what work will need to be done to professionally prepare your tax return. Based on the information you provided, I can tell you that our base fee is $200, which includes the 1040, Schedule A, and State of Delaware return. In your case, you will also need to have a PA return, Schedule D and appropriate sub-schedules, and some other items relative to your IRA and moving. I will also tell you that we offer a $35 discount for new clients. We are certainly interested in adding you as a client so please call our office or feel free to schedule an appointment online. We look forward to seeing you soon.

Friday, March 16, 2012

Why I'm Paying My Taxes With a Credit Card This Year

Why I'm Paying My Taxes With a Credit Card This Year: Paying your taxes with a credit card means paying big fees. So why am I doing it? Because this year, I come out ahead.