New Clients
Rates vary depending on your tax needs and circumstances. We ask clients to submit their previous year’s tax returns to our secure server so we can provide you with an estimate based on the information provided. If your tax situation has changed from the prior filing year, please let us know in consideration of providing the best estimate.
Security is a top priority for us. You can safely submit your documents to our secure server. Please remember to include a completed intake form.
We do our best to ensure the processing of returns in a timely fashion. To maximize time efficiency, we ask that you submit all required personal information, tax documents, and other tax-related forms such as Expense, Rental, etc to us at once. Missing information and documents will delay the process. Please go to Forms for all the necessary paperwork that you will need. Typical turnaround time if we have all your documents is less than one week.
Prior Returns
Yes. Please send an email to info@colacinotax.com to request and indicate the taxpayer’s full name (first name listed on return). For security purposes we can only send a secure copy to the email address on file. If that email is no longer valid, please provide us with a copy of a valid ID to verify your identity. There will be a fee for hard copies mailed. There is no charge to pick up.
Yes we can! Please submit a copy of your tax return, copies of original documents, and any additional information for amendment. Once the amendment is prepared, we will contact you with the updated results. Amendments can either be electronically filed or paper filed depending on the tax year and reason for amending. The starting price is $350.00.
Small Business
Self-employed individuals need to fill out and submit a 1099-MISC/NEC Form. For each category of expense, please list the total amount out of pocket for that tax year. We do not require receipts however, you should keep them for your records if the IRS requests proof of the expenses reported. Unlike a W-2 there are no taxes withheld on a 1099 so you will be taxed on the net profit after including your allowable business expenses. We recommend making quarterly payments to the IRS and state to reduce/prevent a large tax bill at the time of filing. Our software can calculate estimated payments by your current income, or you can provide a projected gross income for the upcoming year to produce a more approximate amount.
If you haven’t paid any or enough tax during the calendar year, you will be subjected to estimated tax penalties. Upon completion of your return, our staff can calculate your estimated tax payments to ensure you don’t incur these penalties going forward.
This is one of the most common and confusing questions for clients because it is dependent on so many variables. We suggest reading and learning about different entities to see which one is suitable for your business and goals. If you require consultation, we are happy to schedule one during the off-tax season (May-Dec) so we can give you the time you need. Consultation rate of $350 per hour with a half hour minimum will be assessed.
There are two types of LLC (Limited Liability Company): Single-member and Multi-member. Single-member means you are the sole owner of the company. Multi-members LLCs and Partnerships have multiple member owners within a given entity. IRS tax rates for both entities are the same, in that tax liability is calculated at individual tax return rates. The distinction is in the filing requirements. Partnerships must file a separate business tax return—an IRS form 1065 and the partners will receive a K-1 for their share of the profits. K-1 income is then reported on your personal return. For single member LLCs, no separate business return is required. A single owner LLC will just file as a self employed individual form Schedule C on their personal return.
Property Ownership
If you bought a property you may have received a 1098-Mortgage Interest tax form from the bank that includes the mortgage interest principal and any property taxes paid for that year.
For the sale of a personal residence, we need the following:
• Original purchase date and purchase price
• The closing disclosure of the original purchase of the property
• Total cost of improvements during the time the home was in your possession
Clients that are selling a rental property need to provide:
• The closing disclosure of the original purchase of the property
• Cost of improvements for the current tax year (our software will incorporate prior improvements that will be reflected on a depreciation schedule)
If you are a new client selling a rental property, please provide all the above and a copy of your prior year tax return that includes the depreciation schedule.
Once you are in receipt of all the documents, send them as soon as possible so that we can calculate an estimated payment for the tax year that the sale occurred.
Inheritance
For security reasons we require a power of attorney letter for authorization to electronically file the tax return. If they are due refunds we need the first name, last name, social security number and address of the person that will be collecting the funds. If you are unable to provide a copy of the death certificate, we will need the date of death to report a final tax return. Please refer to our Forms to help organize their tax documents. We will also be able to help you determine the necessary tax information to complete the return.
Extensions
Existing clients (individual and business) can file an extension through our office for a $50.00 fee. Please include an Extension Slip with your filing request. Clients can also go to the IRS website to print out extensions and mail. Please note, extensions apply only to the tax filing deadline (April 18th, 2023). It does not allow for extension of any payment due on your federal and state tax returns. Clients will need to submit any estimated payment due during the time of filing an extension.
Failure to File: This is the worst penalty you can be responsible for as it is calculated to be 20% of the taxes owed. The way to avoid this penalty is to file by the deadline (April 18th), or file an extension to avoid this penalty. Clients who are due a refund are not impacted by this penalty.
Failure to Pay: Even if you file your tax return on time, you will be responsible for failure to pay penalties if the full amount of tax owed has not been paid by April 18th. This penalty is calculated at one half of one percent of the tax owed computed monthly. You will owe this penalty in addition to interest which will also be added to any balance owed as of April 18th. You owe these amounts even if you file an extension.
Please submit the tax document so that our staff can check if it is necessary to include the form on your tax return. Due to income limits, it may not make a difference in your return. If the document is required to be included, we will prepare the amendment and we will contact you with any changes to federal and/or state prior to the filing process. The starting price for an amendment is $100.00.