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Bardella & Associates702 Litchfield Avenue Sebastopol, CA 95472 Phone: 707-829-4800 Website Address: www.bardella.com Email Address: Bardella@bardella.com |
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A. Enrolled Agents are individuals licensed by the Federal Government to represent taxpayers before the Internal Revenue Service. Enrollment dates back to 1884, when Congress acted to regulate persons who represented citizens in their dealings with the Treasury Department, after questionable claims had been presented for Civil War losses.
Q. What exactly do Enrolled Agents do?
A. Unlike lawyers or CPAs, Enrolled Agents specialize in taxation. Throughout the year they advise, represent and prepare returns for individuals, partnerships, corporations, estates, trusts and any entities with tax-reporting requirements. In California, for example, the more than 4,000 members of the California Society of Enrolled Agents prepare almost 2,000,000 tax returns each year. Enrolled Agents' expertise in the constantly changing field of tax law enables them to be effective representatives when taxpayers are audited by the IRS.
Q. How do Enrolled Agents differ from other tax experts?
A. Only Enrolled Agents are required to demonstrate competence in matters of taxation before they may represent a taxpayer. Also, they are the only representatives for taxpayers who receive that right from the U.S. Government. (CPAs and attorneys are licensed by the states.) An individual may become an Enrolled Agent in one of two ways: The primary way is to pass a difficult, two-day examination given annually by the IRS. The test covers taxation of individuals, corporations, partnerships, estates, trusts, procedures and ethics. The other way is to have been an employee of the Internal Revenue Service for five years, regularly applying and interpreting the provisions of the Internal Revenue Code and regulations.
Q. What is the phone number for the IRS?
A. To pay by credit card, call 1-888-272-9829 and follow the instructions. A fee will be charged by the credit card processor based on the amount you are paying. You will be told what the fee is when you call and at that time you will have the option to either continue or cancel the call. You can also find out what the fee will be on the Internet at www.8882paytax.com.
If you paid by credit card, enter the confirmation number you were given at the end of the call on page 1 of Form 1040 in the upper left corner.
DO NOT include any estimated tax payment in the amount you charge. Make your estimated tax payment separately.
Q. I am unable to pay the balance due when
A. There are two options. You can file an installment agreement with the IRS or you can also pay by VISA or Mastercard. (See #3 above)
Q. How can I check on my refund?
A. If you have not received your refund in 6-8 weeks, you can check on it by calling 1-800-829-1040.
Q. How am I selected for an Audit?
A. Your tax return is evaluated and scored by the IRS computer system. If your tax return is not within the IRS pre-set guidelines, you may be selected for an audit. Also, if you have unreported income that the IRS has discovered and it does not appear on your tax return, you may also be audited.
Q. Do I have to make my estimated payments?
A. If you have not paid enough to cover your tax liability throughout the year and you do not make estimated payments, the IRS and Franchise Tax Board will assess additional interest and penalties when you file your tax return.
Q. If I am doing my own business bookkeeping,
A. If your business is a corporation, a partnership, or a limited liability company, you will need to do double entry bookkeeping. You must have an income statement and a balance sheet to properly prepare your return
A. An extension is an extension of time to file your taxes. It is NOT an extension to pay your tax liability.
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