Frequently Asked Questions
How long should I keep my records and tax returns?
We recommend that an individual keep all important records and tax returns for a minimum of 3 years from the date the return was filed. However, it is probably the best practice to keep these records as long as possible. A convenient way of doing this is to scan all documents to a computer, then upload them to a secure, encrypted online file storage service. This way, you can access the files anytime you want, from anywhere, even if your computer breaks or gets destroyed.
What should I do if I receive a notice from the IRS about my taxes?
First, do NOT panic, it may not be anything to worry about. Carefully read through the entire notice to determine exactly why it was sent, and how they expect you to respond to it, or what actions they require. If you do not completely understand exactly what they are requiring of you, please call us immediately to determine the required action, and what steps you need to take to satisfy the IRS.
How much can I deduct on my tax return if I donate my vehicle to charity?
In recent years, the IRS has really become a lot more strict in the way one would determine the value of their car. In the past, there was an abundance of over-inflated appraisals regarding the fair market value of vehicles. In effect, now you must claim only the exact amount that the charity received at an auction to sell the car, which means you have to wait until the donated vehicle is actually sold. The charity should give you sufficient time to claim the deduction.
If the vehicle is not auctioned off, but instead is used by the charity, then you can claim the fair market value of the vehicle.
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