Tax FAQs
The tax professionals at Daniels & Company, Inc. are here to answer your tax concerns. We encourage you to schedule an appointment for a complimentary consultation to discuss them. In the meantime, there are several good resources available at www.irs.gov, www.ftb.ca.gov and www.cdtfa.ca.gov. Below are answers to questions we are frequently asked:
Refunds and Payments
Q: Where’s my refund?
A: You can check the status of your federal tax refund on the IRS website, which is updated daily. Confirm the status of your state tax refund at the California Franchise Tax Board website. Refunds for e-filing typically take about 3 weeks, while filing by mail can take up to 3 months. Daniels & Company, Inc. makes it easy for you with e-file at no extra cost to you.
Q: What if I am unable to pay?
A: Both the IRS and the California Franchise Tax Board offer installment agreements for individuals and businesses. If you apply for one of these payment plans, please inform us so that we may help you monitor the process.
Q: What are my options for making state and federal tax payments?
A: You may make payments by check or online using electronic funds transfer or a credit card. Please be aware that credit card options involve a service fee. View payment options for the IRS here. You can make a payment to the California Franchise Tax Board here.
Q: How do I know if I need to file quarterly individual estimated tax payments?
A: Our tax experts can review any necessary quarterly tax payment schedule with you. The IRS offers quarterly payment guidelines here.
Q: How can I confirm how much I owe to the IRS?
A: Find your IRS account information here.
Q: I’m expecting a sizable capital gain (or loss) in the upcoming tax year (due to a home sale, investment or business sale, inheritance, etc.). How should I plan?
We can help you determine if you’re a candidate for claiming a loss or making necessary estimated payments on a taxable capital gain. The best time to plan is before the sale has been made. Find more information from the IRS on capital gains and losses.
Deductions
Q: What are the IRS guidelines for qualified deductions?
A: Here are IRS guidelines on deducting business expenses. For individuals, see these IRS resources for credits and deductions.
Tax Forms
Q: Where can I get individual and business tax forms?
A: Clients of Daniels & Company, Inc. are provided with individual and business tax forms. You can also download IRS forms and publications here. Or, download California Franchise Tax Board forms here.
Business Owners
Q: I’m a business owner. What taxes must I pay, and how do I pay them?
A: The type of business you operate determines what business taxes you owe, including income tax, estimated taxes, self-employment tax, employment taxes, and excise tax. The experts at Daniels & Company, Inc. can help you schedule and file any and all of these taxes. The IRS provides a good primer on business taxes here.
Q: What types of records do I need to keep as a business owner?
A: You’ll want to use a record keeping system that clearly shows your income and expenses. The accountants at Daniels & Company, Inc. offer assistance with QuickBooks record keeping, as well as training for business owners and their staff. You’ll find IRS record keeping tips here and several resources for small businesses and the self-employed on the IRS website.
Q: I’m thinking of starting a business. What do I need to know about taxes?
A: One of the best tips we can give a new business owner is this: Gain a basic understanding of your federal, state and sales tax obligations, right from the start. Schedule an appointment with a professional at Daniels & Company, Inc. so that we can provide industry-specific guidance on selecting your business structure, choosing a method of accounting, paying your business taxes, and choosing a tax year end that will work best for you. We can help you apply for an Employer Identification Number (EIN), and provide forms for your employees. The Small Business Administration has several good tips on starting a business.
Q: Where can I learn more about Sales and Use Tax?
A: See the California Department of Tax and Fee Administration for forms and information.
Withholdings, Deductions and Exemptions
Q: For Employees: How do I determine the amount of tax I should have withheld from my paycheck, on my W-4 Form?
A: Refer to the IRS tax estimator.
Q: For the Self-Employed: How do I determine my estimated tax schedule?
A: See the IRS tax center here.
Note: You can help avoid surprises beforehand on your tax liability by sitting down with the experts at Daniels & Company, Inc. to review your income, withholdings, exemptions and estimated tax payments.
Q: What are the guidelines for personal exemptions and dependents?
A: Make sure your child has not filed their own tax return before claiming them as a dependent. Learn more about child and dependent care credits here. You’ll also find more specifics on who you can claim as a dependent.
Planning for Retirement
Q: What types of retirement plans are available?
A: Schedule a time to discuss your best options for a retirement plan with the tax experts at Daniels & Company, Inc. The IRS offers an overview of retirement plans here.
Suspicious IRS Communication
Q: I received a suspicious communication from someone claiming to be with the IRS. How should I deal with this?
A: First, don’t reply to a suspicious request for personal or financial information. If you think that you’ve been targeted by a phishing scam, either by phone, mail, email, text message or social media channels from someone claiming to be with the IRS, here’s what you should do.
Note: Do not give out any personal information and do not respond to emails or calls claiming to be from the IRS. The IRS does not contact business owners or individuals by phone, email, text message or social media channels.