Most taxpayers will need some combination of the following:

• Income forms: W-2s, 1099s (NEC, INT, DIV, B, R, G), and K-1s
• Investment/crypto activity: Brokerage statements, crypto reports, gain/loss summaries
• Home-related documents: Form 1098 mortgage interest, property tax amounts, closing statements for home purchases/sales
• Business or rental activity: Income and expense records, mileage logs, asset purchases, bookkeeping reports
• Education/child-related forms: Form 1098-T, daycare statements, adoption expenses
• Bank/interest statements
• Health insurance documents: 1095-A (Marketplace), 1095-B/C
• Prior-year tax return

Your exact checklist depends on your personal and business situation — we’ll guide you through what applies to you

Tax deadlines depend on your entity type:

• Individual tax returns (Form 1040):
  April 15 (extension to October 15)
• S Corporations, Partnerships, and most multi-member LLCs:
  March 15 (extension to September 15)
• C Corporations:
  April 15 (extension to October 15)

If a deadline falls on a weekend or federal holiday, the due date typically moves to the next business day.

No.
A tax extension only gives you more time to file, not more time to pay.

Any taxes owed are still due on the original deadline:

• March 15 for S-corps, partnerships, and most LLCs
• April 15 for individuals and C-corps
• (Subject to estimated tax requirements)

If you expect to owe, you should make a payment with the extension to avoid interest and penalties.

The IRS can charge several types of penalties and interest if you file or pay late. The most common are:

• Failure-to-file penalty: Charged when your return is filed after the deadline.
• Failure-to-pay penalty: Charged when you owe taxes but don’t pay by the due date.
• Estimated tax penalty: Charged if you didn’t pay enough tax throughout the year (common for self-employed).
• Accuracy-related penalty: Applies when the IRS finds substantial errors or under-reported income.
• Interest: Charged on any unpaid balance until fully paid, including on penalties.

We help clients reduce or remove penalties when possible through abatement or reasonable cause requests.

No — you should still file your tax return on time, even if you can’t pay.

Filing on time avoids the much larger failure-to-file penalty, and it keeps the IRS from escalating the issue.

If you cannot pay the full amount, you have options:

• Set up a payment plan (installment agreement)
• Request a temporary hardship status (Currently Not Collectible)
• Make a partial payment to reduce penalties and interest
• Request penalty abatement if you qualify

We can help you file on time and arrange the most affordable payment option with the IRS.

Yes.
Any time you sell, trade, or dispose of stocks or cryptocurrency, it is generally a taxable event.

You may owe tax if you:

• Sell stocks or crypto for a gain
• Trade one crypto for another
• Convert crypto to cash
• Use crypto to buy goods or services
• Sell or trade NFTs
• Receive staking/mining rewards (taxed as income)

You’ll need to report your capital gains or losses on your tax return.
We can help you calculate your gains, review your statements, and ensure everything is reported correctly.

Capital gains tax depends on how long you held the asset before selling it:

• Short-term capital gains (held less than 1 year):
  Taxed at your ordinary income tax rate, just like wages or business income.
• Long-term capital gains (held 1 year or more):
  Taxed at lower preferential rates of 0%, 15%, or 20%, depending on your income level.

Capital losses can also offset gains and potentially reduce your taxable income.

We can review your transactions to ensure gains and losses are calculated correctly and reported in the most tax-efficient way.

If you skip filing for several years, the IRS can:

• Create a Substitute for Return (SFR) using income reported to them — usually resulting in a higher tax bill
• Add penalties and interest for every unfiled year
• Begin collection actions, including notices, liens, or levies
• Hold refunds from later years until earlier returns are filed

The good news: we can prepare all missing years at once, correct any IRS-created returns, and help negotiate payment plans or penalty relief.

Even if you had taxes withheld from your paycheck, you may still owe when you file. Common reasons include:

• Not enough withholding was taken out during the year
• Additional income with little or no withholding, such as contract/1099 income, rental income, investments, or interest
• S-corp distributions or pass-through income from a business
• Capital gains from stock or crypto sales
• Life changes (marriage, child, second job) that changed your tax bracket
• Underpaid estimated taxes

We can review your situation and adjust your withholding or estimated payments to prevent surprises next year.

A “reasonable salary” is the amount the IRS expects you to pay yourself for the work you perform in the business. It must reflect what someone with your role, duties, experience, and industry would typically earn.

We evaluate factors like your workload, comparable salaries, business profits, and industry data to determine a defensible reasonable compensation amount.

IRS can audit you: generally 3 years

IRS can assess additional tax: 3–6 years (or unlimited for fraud)

IRS can collect once assessed: 10 years

Yes — every business needs bookkeeping. Proper bookkeeping helps you:

• Track income and expenses accurately
• Keep business and personal finances separate
• Prepare correct tax returns
• Avoid IRS issues and audit risks
• Understand profitability and cash flow
• Qualify for loans, leases, and financing
• Make informed business decisions throughout the year

Good bookkeeping saves time, reduces stress at tax time, and helps you stay compliant.
We offer bookkeeping solutions tailored to your business needs.

You need payroll if your business has employees — including yourself in certain situations.

You likely need payroll if:

• You operate as an S-Corporation and you work in the business
  (The IRS requires owners to pay themselves a reasonable salary through payroll.)
• You have W-2 employees
• You want to offer benefits that require payroll reporting
• You need to stay compliant with IRS, state, and employment tax rules

You do not need payroll if you are a sole proprietor or single-member LLC with no employees — you simply take owner draws.

We help determine whether payroll is required and set up the most efficient system for your business.

The main difference is control and classification — and misclassifying workers can result in IRS and state penalties.

W-2 Employee

A worker is a W-2 employee when your business controls:

• How the work is done
• When and where the worker performs the job
• Tools/equipment used
• Training and direction
• Work schedule and expectations

Employees receive:

• W-2 at year-end
• Payroll tax withholding
• Employer-paid payroll taxes
• Possible benefits (sick leave, PTO, workers’ comp, etc.)

1099 Independent Contractor

A worker is a 1099 contractor when they:

• Control how and when they work
• Use their own tools/equipment
• Work for multiple clients
• Are hired for specific projects or tasks
• Do not receive training or day-to-day supervision

Contractors receive:

• A 1099-NEC if paid $600+
• No payroll withholding
• No employer-paid taxes or benefits

Why correct classification matters

Misclassifying employees as contractors can lead to:

• Back payroll taxes
• Penalties and interest
• Reclassification by the IRS or state agencies
• Workers’ comp or labor law issues

We help you determine the correct classification and stay compliant.