Individuals
Prior year returns, tax information forms (i.e. W-2s, 1099s, 1098, K-1s, brokerage tax summaries with basis information, etc) summary of deductions (business deductions, charitable contributions, real estate and personal property taxes, job expenses, medical expenses, etc). A tax organizer, usually mailed to you in January, is also useful in our preparation. If you have not received an organizer, please contact our office. 



Businesses
A majority of businesses use QuickBooks (or other software) to organize and report on the operation’s financial activity. If you use this type of software, we strongly encourage you to reconcile all banks, credit card and other financial accounts and review financial reports prior to sending backup files. If you do not use packaged accounting software, we ask you to summarize your activity as carefully as possible, whether on a spreadsheet or a simple list, and provide us with monthly bank statements. We may be able to provide you with a format of listing revenues and expenses if your operations are relatively simple. We will also need to maintain a “permanent file” for your business that may include documents such as: the operating agreement, bylaws, approval of S-status, loan documents and amortization schedules, IRS correspondence, asset listings with depreciation accumulated.

In regards to businesses, the tax code in section 162 provides “ordinary and necessary expenses” are allowed as deductions. But the tax code is thousands and thousands of pages long, so please contact us for application of specific situations. The best approach for you is to be as organized and accurate as possible in accumulating financial information and to contact us if there are any questions or concerns as to a deduction prior to the expenditure.

Individual Returns: April 15th 
(if extended, October 15th)

Partnership Returns: March 15th 
(if extended, September 15th)

Corporations and S-Corporations: March 15th 
{ if extended, September 15th }

County Business Property listings: January 31st 
(if extended online in Wake County, May 31st, otherwise, April 15th)

Payroll reports

Form 941, NC-5Q and NCUI-101: April 30th, July 31st, October 31st, January 31st
Form 940 and Form 944: January 31st
Form NC-5: due either monthly or quarterly
Forms W-2: submitted to employees by January 31st 

Form W-3 + submit to the Social Security Administration by January 31st

* Please be aware of your filing requirements for payroll whether monthly, quarterly or semi-weekly.

Forms 1099 and 1096: sent to individuals by January 31st; filed with the IRS using Form 1096 by January 31st

You may choose to enter into an installment agreement with the IRS. The IRS charges a one-time fee of $105 for this service, but it is reduced to $52 if you sign up to have the IRS process your payments electronically. Interest and late payment penalties will continue to accrue. The IRS will generally negotiate to a fair monthly payment such that past taxes are paid in full in a fair amount of time.

Interest rates charged by the IRS fluctuate quarter by quarter.

Some of the more common interest and penalties include:

Individuals

The late filing penalty is usually 5% of the amount due for each month or part of month the tax return is filed after the due date or extended due date of the tax return. The maximum amount of this penalty is 25%. The late payment penalty is ½ of 1% of the amount due for each month or part of month the unpaid tax is paid after the original due date of the tax return. Interest is currently 4%; The maximum amount of this penalty is 25%. North Carolina assesses late filing penalties of 5% of unpaid tax per month, maximum of 25%; a late payment penalty of 10%; and interest at their stated rate, which is currently around 5%.

S-Corps

Beginning in 2010, late filing is $205 for each month or part of a month for each shareholder (up to 12 months.)The North Carolina Department of Revenue charges penalties also, but they are generally based on tax owed.

Partnerships

Beginning in 2010, late filing is $205 for each month or part of a month for each partner (up to 12 months.) The North Carolina Department of Revenue charges penalties also, but they are generally based on tax owed.

Payroll

IRS Deposit penalties for 941 and 944 payroll taxes are based on the amount of the tax deposit. For a deposit 1-5 days late, 2%; 6-15 days 5%; 16 or more days, 10%; more than 10 days after a notice date, 15%; deposited not using EFTPS when required 10%.

IRS late filing penalties for Forms 941 and 944 include a late filing penalty of 5% of the amount due for each month or part of month the unpaid tax is paid after the original due date of the tax return. The maximum amount of the late filing penalty is 25%. Also, for each whole or part month that the tax is paid late, there is a failure-to-pay penalty of 0.5% per month of the amount of tax, with a maximum of 25%.

NC withholding: There is a 10% penalty for late payment of the tax due. There is also a penalty of 5% per month (max 25%) for failure to file the report when due.

NC Unemployment: The Division of Employment Security charges a late filing penalty of 5% of the amount of tax due per month, or portion thereof, to a maximum of 25%. A late payment penalty is 10% of the amount of tax due. Interest is currently charged at an annual rate of around 5%.

Sales Tax

Sales tax in North Carolina: If tax is due, both a failure to file penalty of 5% per month or fraction thereof with a maximum of 25% (minimum $5.00 State and $5.00 county) and a failure to pay penalty of 10% (minimum $5.00 State and $5.00 county) will be due. Interest is due on the amount of tax due from the date the tax was due until it is paid.

Include specific contents of the letter needed and she will generate on your behalf in a timely manner. We cannot send information to a third party, such as a bank or mortgage broker, without written consent from the client.