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Frequently Asked Questions
Today’s tax laws are so complicated that unless your financial affairs are extremely simple, chances are you will benefit from at least occasional help from a tax professional, and even more so from a Certified Public Accountant. It is too easy to overlook deductions and credits to which you are entitled if you prepare your own returns. Even the use of computer software is no substitute for the expertise of a seasoned tax professional. We prepare hundreds of tax returns every year for Corporations, Partnerships, Sole Proprietorships, and Individuals, and know what to look for when preparing your return. Because each situation and individual is unique we offer a free initial consultation to all our new tax clients, along with a written estimate on the cost of filing your return. 2. What is the tax Return Guarantee Program? An Internal Revenue Service study has shown a 25% increase in the number of personal income tax returns examined. Likewise, the New York State Department of Taxation and Finance reports and 8.4% increase in examinations, leading to an increase in assessments of over 43%! This mean the probability of your return being selected for audit or being the subject of an IRS notice is rising. Just as you have insurance on all your valuable assets, we believe it is imperative that you ensure qualified representation by the people who prepare your returns, and cost effectively. What does it cover? Audit Representation Service assures you that we will represent you before the Internal Revenue Service and the New York State Department of Taxation and Finance, up to and including the Revenue Agents Report, should an audit of this years return be requested. Generally, such representation takes a minimum of 10 to 20 hours with fees in excess of $1,500 not uncommon. The Revenue Agents Report refers to the final audit report that has been negotiated with the revenue agent. Appeal of the Revenue Agent’s Report is not covered by this service. Nuisance Letter Service assures that we will write up to two letters on your behalf to the federal or state tax authorities concerning this year’s returns. The Internal Revenue Service mails over 100 million letters or notices to taxpayers annually. The notices are created using a zero tolerance formula. In other words, if you round up and they round down, a letter is automatically generated inquiring where certain items were reported on your return. Normally the cost to research and respond to a notice can average $100 to $150 per response. What is the cost? The cost of both the audit representation and nuisance letter service is 25% of your tax preparation invoice. This percentage was determined after estimating the probability of audit and spreading the risk over the number of participating clients. Why take any chances? The IRS has increased their audit and recovery efforts through additional training for examiners and revenue agents. More audits may be conducted on this year’s returns than ever before. Significant efforts and expenditure in information and data processing capabilities have lead to efficiency and performance of audits and recovery, as well. As a result, each year there is an increasing likelihood that you may receive an inquiry form the federal and state taxing authorities as to the completeness or accuracy of your returns. If you would like more information on our Tax Return Guarantee Program or details on how to enroll please call our offices at 607-257-0858 or email us at results@strebelcpa.com and we will be happy to assist you. 3. Why does my business need an accountant? If you are like most business owners, you have knowledge, drive and love for your business. You know your product inside and out, and enjoy promoting it and generating enthusiasm for it. But every business is in existence to make money, and every business requires money to keep it alive. Keeping track of your profits, spending and saving is crucial to your success. Do you have as much knowledge, drive and love for financial record keeping as you do for your company? Many people don't, and for them, the nominal cost of having a professional take care of their financial needs is well worth it. Even if you have an in-house bookkeeper, or your own computer software to take care of daily transactions, do you know what the numbers actually mean in terms of true profit? Are you up to date on the sales and payroll tax regulations and due dates? Can you read the trends in Financial Statements to know where you are succeeding and where you need to pay closer attention? Do you understand the different advantages and disadvantages of operating as a sole proprietorship, a C Corporation, or an S Corporation? Can you figure depreciation schedules on capital assets (like machinery, furniture and computers) for your corporate return? Even the best auto mechanic, sporting goods retailer or restaurant owner on the block needs to deal with these issues, and many, many more. We deal with them every day; they don't need to be a burden to you, or a distraction from what you enjoy most - building your business.
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