Q. How long must I keep copies of my records?
A. As a general rule, any records that you need for tax purposes should be retained for at least three years. Some records should be kept longer for example records of satisfied loans should be kept for seven years. Records that you will want to keep forever include marriage licenses, birth certificates, wills, adaptation papers, death certificates, and records of paid mortgages.
Q. I need more time to file my income taxes, what can I do?
A. The deadline for filing taxes is April 15th. If you need more time to prepare your taxes, you can ask for a four month extension by filing form 4868. However, an extension of time to file does not give you an extension of time to pay.
Q. What if I don't have the money to pay my income taxes when I file?
A. You can apply for an installment agreement with the IRS, setting your own monthly payment amount and due date and get a reduced late payment penalty rate. But remember, even if you don't have the full amount you owe, make sure to file on time. It is more costly to pay the late filing charges than to pay interest on the money you owe.
Q. I am expecting a refund, but I have not filed my return and the deadline has passed. Will a late penalty be charged?
A. If there is a refund due to you, no penalty for late filing or late paying will be charged. The penalty is based upon the unpaid taxes as of the due date of the return.
Q. I have received a notice from the IRS. What do I do?
A. Contact us as soon as possible. We will help you to respond to the IRS notices. Failure to respond is grounds for levies and seizures against your property: including wages and bank accounts.
Q. What is the standard mileage rate?
A. The standard mileage rate for 2008 before July 1, 2008 is 50.50 cents and after June 30, 2008 is 58.50 cents per mile.