Tax Preparation

Tax preparation involves completing forms required by the IRS and state tax authorities. Both individuals and businesses can handle their tax returns independently or seek professional assistance. The key advantage of working with a tax professional lies in their comprehensive understanding of tax codes and their ability to identify all available deductions, credits, and tax benefits.

Tax Preparation Services at Alter Tax Solutions

Our dedicated team of tax preparation specialists provides comprehensive support for both individuals and businesses. We offer:

• Federal and State Tax Preparation: Our experienced preparers leverage their in-depth knowledge of tax codes to maximize deductions and minimize errors.
• Late Return Filing: We assist in preparing and submitting tax returns from previous years, working to reduce potential penalties.

If you're facing tax challenges or suspect you're not utilizing all available opportunities, we're here to help. Call today for your free consultation!

Tax Credits and Deductions

Identifying opportunities to reduce your tax burden is one of the most complex aspects of tax filing. Our experts will help uncover all available tax credits and deductions to maximize your refund (or minimize your payment).

• Credits directly reduce your tax liability.
• Deductions lower your taxable income before tax calculation.

Tax credits and deductions can significantly increase your tax refund or reduce your tax bill if you owe the IRS. Consider the following potential credits and deductions:

Individual Tax Credits:

• Family and dependent credits
• Income and savings credits
• Homeowner credits
• Healthcare credits
• Education credits

Individual Deductions:

• Work-related expenses
• Itemized deductions
• Education deductions
• Healthcare deductions
• Investment-related deductions

Qualified Tax Professionals for IRS Representation

Three categories of tax professionals hold "unlimited representation rights" before the IRS: enrolled agents, certified public accountants, and attorneys. At Alter Tax Solutions, our in-house attorneys and enrolled agents handle client cases. These qualified professionals can represent clients in all matters, including audits, payment/collection issues, and appeals.

Professional Qualifications:

• Enrolled Agents: Licensed by the IRS, they must pass a comprehensive three-part Special Enrollment Examination and complete 72 hours of continuing education every three years.
• Certified Public Accountants: Licensed by state boards, they must pass the Uniform CPA Examination and meet ongoing education requirements.
• Attorneys: Licensed by state courts, they must earn a law degree and pass a bar exam, with many specializing in tax matters.

Filing Deadlines and Extensions

The standard tax filing deadline is April 15. However, special circumstances may warrant an extension. For example, in 2021, the deadline was extended to May 17 due to pandemic-related considerations, with further extensions available in certain states.

Late Filing Consequences

Untimely preparation or filing of your tax return may result in late-filing penalties and/or interest charges. To avoid penalties, you must request an extension before the tax deadline.

If you're due a refund but haven't filed a return, you have three years from the original filing deadline to claim your refund.

Alter Tax Solutions can help you prepare and file late returns, minimizing the risk of additional issues with tax authorities.

Required Documentation

Before filing your return, ensure you have gathered all necessary documents. Missing required information may delay your refund and necessitate error corrections.

Income Documentation

The most critical documents are those showing your income:

• W2 Forms: Issued by January 31, these show annual earnings and withheld taxes, including Medicare, Social Security, and state taxes where applicable.
• 1099 Forms: Various types exist based on income sources:
  • 1099-NEC: Contract work
  • 1099-K: Credit/debit card payments or third-party processor payments
  • 1099-MISC: Rent, prizes, royalties
  • 1099-INT: Interest income
  • 1099-DIV: Dividend income
  • 1099-B: Broker-handled transactions

Additional Required Information

• Previous years' federal and state tax returns
• Social security numbers for you, your spouse, and dependents (including children under 19, elderly parents, students, and disabled adult children)

Tax Considerations for Different Entities

Tax preparation varies significantly depending on the type of entity:

• C Corporations: Taxed at corporate level on profits, with shareholders taxed on dividends.
• Partnerships, S Corporations, LLCs: Pass-through entities where taxes are assessed at individual level.
• Estates: Subject to federal estate tax if exceeding $11.7 million (2021 threshold).
• Trusts: Principal distributions are tax-free, while interest income is taxable.
• Gifts: Subject to gift tax for transfers exceeding $15,000 per year.

How to File Your Tax Return

When working with us, Alter Tax Solutions will prepare and submit your returns. For those filing independently, two options are available:

Electronic Filing

The IRS strongly recommends e-filing through their official free program or authorized tax professionals and software. Electronic filing typically results in faster refund processing - usually within three weeks.

Paper Filing

While paper filing remains an option, processing times are significantly longer - up to eight weeks for refunds. Ensure you're mailing your return to the correct IRS office, as processing centers vary by state, return type, and payment status.