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One Place For All Your Accounting Inquiries

FREQUENTLY ASKED QUESTIONS

FAQ: FAQ

HOW DO I KNOW IF S HARRIS ADMIN AND FINANCIAL SERVICES IS RIGHT FOR MY NEEDS?

Start ups, small business and growing companies benefit from having organized, accurate and reliable financial data accessible. Give S Harris Financial a try if you are looking to streamline and organize your companies financial records.

WHAT ARE THE DIFFERENCES BETWEEN AN ACCOUNTANT, A CPA AND A BOOKKEEPER?

Simply put, Accountants, CPA and Bookkeepers all work in finance. Bookkeepers are responsible for recording and tracking the financial transactions of a company, while accountants are responsible for analyzing, summarizing and reporting the results.  Accountants and CPA are certified by the state upon passing a very difficult exam, they perfect and create budgets, financial statements and prepare tax returns.

HOW LONG SHOULD I KEEP MY TAX RECORDS?

Records should be kept at a minimum 3 years from the date taxes were filed or 2 years from the date taxes were paid, optionally whichever is the later date. Any returns that includes loss from securities or bad debt deduction should be maintained for 7 years.

The IRS called me, what should I do?

The IRS does not leave pre-recorded, urgent messages asking for a call back. It is a scam, where you may be told if you do not call back, a warrant will be issued for your arrest. Other variations may include the threat of other law-enforcement agency intervention, deportation or revocation of licenses. The IRS will never threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying. The IRS reminds everyone to be vigilant to avoid becoming a victim. If you are unsure about something, do not make a hasty decision instead,  think it over and contact the IRS directly at their email set up for this type of thing at phishing@irs.gov or through their site IRS.GOV

WHAT RECORDS TO KEEP INDEFINITELY?

  • Annual Tax Returns

  • Year End Statements for Investments.

  • Wills

  • Living Wills

  • Receipts For Major Purchases

  • Deeds, Mortgages and bill of Sale

  • Birth Certificates, Marriage License, Divorce Papers, Passports (Legal Documents)

HOW DO I KNOW IF I HAVE TO FILE QUARTERLY INDIVIDUAL ESTIMATED TAX PAYMENTS?

You must make estimated tax payments for the current tax year is :

  • If you expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits.

  • You expect your withholding and refundable credits to be less than the smaller of :

          90% of the tax to be shown on your current year's tax return, or​

          100% of the tax shown on your prior year's tax return. (Your prior year tax return must cover all 12 months)

Rules are different for Farmers, Fishermen, Household Employers, Higher Income Tax Payers and Nonresident aliens. 

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