Over the years we have been asked many questions. Here are just a few that you might have also.

Q. How long do I keep my personal tax records?
A. The Internal Revenue Service suggests 3 years from the due date of the tax return or your actual filing date which ever is later. However, we recommend that you retain your tax returns, W2s and 1099s for at least 7 years.

Q. How Long Should I Keep My Business Tax Records?
A. Payroll Tax returns should be kept indefinatley, Business Tax Returns should keep at least for 10 years. Bank Statements and cancelled checks, accounting journals and books keep for 7 years. Sales invoices, purchase expenses and routine office correspondence keep for 5 years. Closing statements for the purchase of warehouses, offices, equipment and vehicles, keep for 4 years after the date of the sale of the asset.

Q. What is the standard mileage rate?
A. The standard mileage rate for business auto use is $.36/mile for 2003.

Q. Do I need to save all my receipts if I Itemize my deductions?
A. YES! By saving your receipts it helps us determine how much you spent on certain items that are deductible. And should the IRS ever question a deduction you will always have the proof.

Q. Should I refinance my Mortgage if I have car loans, credit cards bills and other payments.
A. YES! Homeowners should refinance or take out a home equity loan. The interest is deductible on Schedule 'A'. All other interest like on car loans, credit cards or personal loans are not deductible.

Q. Do I need receipts for non cash charitable contributions?
A. YES! The IRS allows a deduction of up to $500.00 without filing form 8283. However, most individuals lose out because the value of these items usually are worth more than the $500.00.

Q. Can I get a deduction for donating a car?
A. YES! There are several agencies out there that will give you a receipt for the book value for your car and you get that FULL value as a deduction on Schedule 'A' if you can itemize.

Q. Do I save taxes by filing a separate return instead of jointly with my spouse?
A. It depends on your tax situation. Sometimes you may benefit from filing separately instead of jointly but only if certain criteria are met. One example would both spouse have similar income and expenses but filing joint may cause certain of these expenses to be limited, then filling separately maybe an option. We always look at this filing separate issue for all our clients.

Q. What do I do if I receive a letter in the mail from the IRS or my State?
A. First don't panic, call our office and let us know you received a letter. We will advise you what to do.