FAQs

Frequently Asked Questions

Why do I have to fill out a tax organizer? You don’t! McGuckin, Shatz & White, LLC operates differently than most tax preparation services that require you to decide where every number should go and do all the work yourself. We want to take your stress away by making it as easy as possible for you. Just bring us your paperwork and we’ll do the rest. We’ll ask you questions about anything that is unclear.

What are some of the advantages of a professionally-prepared tax return?

• Professional, expert advice provides up-to-the-minute tax legislation that may lower your taxes.
• Reduces the possibility of audit through accurate and compliant tax return preparation.
• Home financing and business loans may be more easily obtained with professionally-prepared tax returns.
• You can get refunds faster through electronic filing.
• No hassles, no headaches.

What are some major reasons people get audited?

• Extremely large medical expenses deducted on Sch. A
• Employee expenses, particularly mileage
• Subcontractor 1099 payments
• As long as you have impeccable records you have nothing to worry about.

Why do people fail IRS audits?

• They don’t keep accurate books.
• They don’t retain receipts & canceled checks.
• They co-mingle money. Personal and business funds should always be kept separately.

Do I have to file a tax return? Filing requirements depend on your income and other factors. Call MSW for a free phone consultation regarding your personal filing requirements.

What are the advantages of electronic filing of tax returns? There are several advantages to “e-filing.” Your refund gets to you faster. Also, there is electronic proof that the IRS received your return. MSW does not charge an additional fee for e-filing, and you have more security.

What is Alternative Minimum Tax? Alternative minimum tax (AMT) really isn’t an “alternative.” It’s a mandatory tax for individuals of higher income brackets who have excessive deductions, exclusions, and credits. AMT is intended to shift some of the tax burden to taxpayers with substantial income who would otherwise avoid a tax liability.

Why do I need an accountant? The key to keeping any business functioning properly is to keep a tight rein on the financial aspects of the business. At MSW we know that all too often, the search for an accountant begins when the business owner finds him or herself in a bind—especially around tax time. Almost all business owners, whether their business is big or small, discover they will eventually need to find the best accounting advice they can get. It is far better to find accountant services at the beginning of a business endeavor and avoid waiting until the last minute to find a qualified local accountant to assist with business tax planning and management.

How do I choose the best entity for my business? How you legally structure your organization will impact the amount of taxes you pay and the manner in which you pay them as well as determining your personal liability for circumstances that arise during the course of your business. We will be happy to discuss the ramifications of choices such as incorporating your business—or remaining a sole proprietor or partnership, and different types of corporate and partnership structures.

What does Full-Charge Bookkeeping mean? Full-charge bookkeepers maintain complete accounting and payroll transactions. They are detail-oriented and able to organize financial information to accurately maintain the second most valuable IRS audit defense for businesses—the general ledger. (Actual receipts and canceled checks are the #1 most valuable IRS audit defense, but the general ledger provides the trail and validation). The full-charge bookkeeper substantially prepares financial statements by trouble-shooting accounting problems and making necessary adjustments to the general ledger based on factual data (such as bank records, accounts receivable, accounts payable, loan balances, inventory count) and calculated data (such as depreciation, cost of goods sold, and prepaid expense deductions).