Posted in General

Many people look for help from professionals when it's time to file their tax return. If you use a paid tax preparer to file your return this year, the IRS urges you to choose that preparer wisely. Even if a return is prepared by someone else, the taxpayer is legally responsible for what's on it. So, it's very important to choose your tax preparer carefully.

This year, the IRS wants to remind taxpayers to use a preparer who will sign the returns they prepare and enter their required Preparer Tax Identification Number (PTIN).

Here are ten tips to keep in mind when choosing a tax return preparer:

1. Check the preparer's qualifications. New regulations require all paid tax return preparers to have a Preparer Tax Identification Number. In addition to making sure they have a PTIN, ask if the preparer is affiliated with a professional organization and attends continuing education classes. The IRS is also phasing in a new test requirement to make sure those who are not an enrolled agent, CPA, or attorney have met minimal competency requirements. Those subject to the test will become a Registered Tax Return Preparer once they pass it. (In our firm, a CPA reviews all tax returns.)

2. Check on the preparer's history. Check to see if the preparer has a questionable history with the Better Business Bureau and check for any disciplinary actions and licensure status through the state boards of accountancy for certified public accountants; the state bar associations for attorneys; and the IRS Office of Enrollment for enrolled agents. (We've got excellent references, just ask!)

3. Ask about their service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers.  Also, always make sure any refund due is sent to you or deposited into an account in your name.  Under no circumstances should all or part of your refund be directly deposited into a preparer's bank account.  (We base our fees on the forms that need to be filed, and all refunds go to you.)

4. Ask if they offer electronic filing.  Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return.  More than 1 billion individual tax returns have been safely and securely processed since the debut of electronic filing in 1990.  Make sure your preparer offers IRS e-file.  (We e-file for FREE!)

5. Make sure the tax preparer is accessible.  Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case questions arise.  (We are here year-round, open 8-5 M-F.)

6. Provide all records and receipts needed to prepare your return. Reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items. Do not use a preparer who is willing to electronically file your return before you receive your Form W-2 using your last pay stub. This is against IRS e-file rules.

7. Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.

8. Review the entire return before signing it.  Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.  (And if you don't understand something, ASK!)

9. Make sure the preparer signs the form and includes their PTIN.  A paid preparer must sign the return and include their PTIN as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return.  The preparer must also give you a copy of the return.

10. Report abusive tax preparers to the IRS. You can report abusive tax preparers and suspected tax fraud to the IRS on Form 14157, Complaint: Tax Return Preparer. Download Form 14157 from www.irs.gov or order by mail at 800-TAX-FORM (800-829-3676).

Last Updated by Leigh Van Gilst on 2012-01-10 09:49:32

Posted in General

Are you covered by long-term disability insurance? If you ever have to take the benefits of the policy because of illness or injury, there's an easy way to make the benefits tax free - just be sure to pay the premiums yourself with after-tax dollars.

In other words, if your employer provides you with long-term disability insurance, any benefits you later get are taxable. If you pay for your premiums yourself, but have them deducted pre-tax on your paycheck, any benefits you later get are taxable.

But if you pay the premium with after-tax dollars, any benefits you later get are tax free. With benefits typically at 2/3 of your regular wages, having them be tax free makes a huge difference!

Last Updated by Admin on 2011-09-30 14:48:48

Posted in General

Now that tax season is over, we can take a breath and reflect on the successes and opportunities of our first year in a new building. We'd like to express our sincere appreciation to you for your business which we value immensely. We at Leigh Van Gilst, CPA & Associates want to be the best we can possibly be. We love our jobs, and we love our clients even more. It's our goal to have satisfied clients who believe we provide a great service and who feel important and respected. Because of this, we've developed a satisfaction survey and would appreciate a little of your time to answer a few questions. Don't be afraid to share what you liked, too!

Last Updated by Admin on 2011-09-30 14:49:27

Posted in General

The possibility of a government shutdown at midnight April 8 has forced the IRS to make contingency plans. This is what we know at this time:

• The April 18 filing deadline for Form 1040 returns remains in effect.
• Tax payments will be processed as usual.
• Returns filed on paper will not be processed until after the government resumes normal operations. This will delay refunds on paper filed returns.
• E-filed returns will be processed as usual with no delay in direct deposit refunds; refunds via physical checks may be delayed
• Taxpayers who have an appointment scheduled with the IRS (audit, collections, appeals or Taxpayer Advocate cases) during the period of the shutdown should assume the appointment has been canceled. These appointments will be rescheduled when normal IRS operations resume.

We will continue to keep you informed as new details are received.

Last Updated by Admin on 2011-09-30 12:26:43

Posted in General

So many changes have occurred in the last month. We've got a name change to Leigh Van Gilst, CPA & Associates, LLC. We've got an address change to 121A Don Diego SE in Los Lunas. And we've got new personnel. Leigh is still here, and added to our company is Debi, our accountant, and Sandra, our office manager. Stop in to visit anytime! We're conveniently located just off of Main Street in the heart of Los Lunas. We're right behind the fire station. We're easy to find, have lots of parking and are in, settled and ready for the new tax filing season. Office hours for the upcoming tax season will be 7am to 6pm M-F and 9am to 3pm Saturdays. The office will be closed on Sundays. Announcements will be coming out soon for our open house. Please plan to attend! It will be on Friday, January 21 from 4-8pm. We'd love to see you!

Last Updated by Admin on 2011-09-30 14:51:37

Posted in General

A note to all NM business owners: The gross receipts tax rate increased effective July 1, 2010. ALL gross receipts tax rates have changed due to the increase in the base rate for New Mexico. If you don't know your rate, you can look it up at: http://www.tax.state.nm.us/pubs/GrossReceiptsRates/gross_receipts_rate_sched.htm or call me if you have questions!

Last Updated by Admin on 2011-09-30 14:52:28