The tax year for the estate begins on the day of the person’s death. If you are the legal representative of the estate, you have the option to file the estate’s income tax return at any time during the twelve months following the death.
The only requirement being the tax period must end on the last day of the month you choose to file. If you choose to file the return prior to the twelfth calendar month, the estate is then considered to have a fiscal tax year.
Hirsch Tax Pros will need the following items to complete the return:
Hirsch Tax Pros can also prepare a Schedule K-1 for each beneficiary, which documents the income they received and can be used for their own tax return purposes. By preparing a Schedule K-1, the estate can then report a deduction for the income amount on its Form 1041 to ensure the income is only taxed once.
After we finish preparing your estate or trust return, be sure to file by the tax return deadline (April 18, 2016 or April 19, 2016 for residents of Maine or Mass.). If the estate has a fiscal tax year, the deadline to file is the 15th day of the fourth month following the close of the tax year.
Also, be sure to pay any tax due from the estate assets and distribute Schedule K-1 to the beneficiaries showing their share of distributions.
Nonprofit organizations, such as ministries, charities and many educational organizations, file Form 990 to report information including income, expenses and balance sheet information.
If you run a nonprofit organization, you must also provide information about the officers of the organization and your sources of funding.
If your nonprofit organization pays you – for example if you are an employee of your nonprofit organization – you receive a Form W-2 or other form so you can report earnings on your individual income tax return.
Hirsch Tax Pros are here to help you with your quarterly tax filings and payments.
You have a product or service that’s in-demand. You do great work, customers pay you to do that work, they’re delighted with the result — that’s all there is to running a business, right?
Unfortunately, as a business owner, you know better. There are a never-ending number of little complications and to-dos that make owning a business so much more complicated than we feel like it should be. And chief among those is filing quarterly taxes with the IRS.
Most businesses—whether independent self-employed individuals, partnerships, or corporations—who operate in the U.S. are required to file quarterly taxes and make estimated payments to the IRS. This process involves precious time spent mining through paperwork, and even a little predicting the future! (Your future revenue, that is.)
Filing quarterly taxes is an unavoidable reality of running a business—but there are a few things we can do to make the process less burdensome, so let us help.
A core specialty is the preparation of tax returns for individual taxpayers. Over the years literally 1000's of Federal and State returns have been prepared and filed. Hirsch Tax Pros has made it easier than ever to get your returns prepared in a timely, safe, and effective manner that fits everyones needs.
Before we begin filing your individual income tax return, make sure you have the following information ready:
Federal individual income tax returns are due with payment by April 15th. A 6-month tax extension may be granted for late filing. However, it is important to understand that there are no extensions for tax payments. So whether or not you obtained a tax extension to file your return, any tax due must still be paid by the original filing deadline (April 15th).
Small business tax return preparation and filing instructions is a core service offered to our clients. Whether your company is a C corporation, S Corp, Limited Liability Company, Partnership or Sole Proprietor a properly prepared tax return can be filed to minimize the tax owed. Over the years, 100's of small business Federal and State tax returns have been prepared for both service and manufacturing company clients.
Hirsch Tax Pros are here to help you file your business return, based on your business type:
Sole Proprietor
If you decided to keep it simple and structure your business as a sole proprietorship, you’re in luck. The paperwork and tax filing requirements are far easier as a sole proprietor than for any other type of business.
As a sole proprietor, you are the business. We will report all of your business income and expenses on a Schedule C, which we file with your personal income tax return (Form 1040). The business itself is not taxed separately.
You don’t have to worry about the net worth of your Schedule C business from year to year, because you and the business are the same.
If you have more than one business, we report each business activity on a separate Schedule C. If you have a farm that you run as a sole proprietor, we will file a Schedule F with your 1040 individual income tax return.
If you’ve incorporated as a C corporation, we will file Form 1120 for your business return. Form 1120 is a little more involved than a Schedule C; it asks more questions and you must provide balance sheet information for the beginning and end of the tax period.
Form 1120 is not filed as part of your personal income tax return. The corporation reports any dividends or other tax information that applies to you on the applicable Form 1099.
Corporations must pay tax on their earnings, if applicable. Their shareholders also pay tax on dividends and other returns. This is called double taxation, because the same income is taxed twice.
If your business is structured as a partnership, we will use Form 1065 to file your return. A partnership, unlike a corporation, does not pay tax. Instead, it passes net income, income tax credits, and other tax items through to each of the partners – those people who have a beneficial interest in the business.
Each partner receives a Schedule K-1 that reports their share of items to report on their tax return.
When you receive a Schedule K-1 from your partnership return, you report partnership tax items on your individual tax return as income or loss.
S corporations are structured like C corporations but have a limited number of shareholders. Like a corporation, an S corporation sells shares but the income passes directly through to its shareholders.
The shareholders report the associated income and loss on their personal tax returns, using their individual income tax rates. This enables the S corporation to avoid double taxation on its income.
In this respect, it works like a partnership return using Form 1065 to file your return.
If your business is organized as a limited liability company and you own 100 percent of it, we can still file Schedule C with your individual income tax return, just as you would with a sole proprietorship.
You have additional filing choices with an LLC, however. Depending on whether you want to be treated as a C corporation or an S corporation, you can choose to file Form 1120 or 1120-S, respectively. Alternatively, you can file as a partnership, using Form 1065.
Hirsch Tax Pros can help you decide which of these options best solves your financial puzzle.
Due March 15th:
Due April 15th (for 2015 taxes, the filing deadline is April 18, 2016):
Hirsch Tax Pros will provie the following common bookkeeping tasks and duties, broken down by week, month, quarter and year.
Payroll processing isn’t just about paying your people. Consider all the parts of your business that touch – and are touched by – your payroll functions. Now consider all that payroll processing data and how it can help you with other parts of your business. New business insights. Easier compliance. A shortcut to taking your human capital management to the next level. Doing payroll better means:
There’s more good news, too. We can show you how to use payroll software to help you meet new Affordable Care Act (ACA) requirements:
Get beyond the paycheck mentality. Discover how payroll can be a catalyst for business transformation. ADP has over 60 years’ experience as a provider of global payroll services for companies of all shapes and sizes. There’s almost no payroll issue that ADP haven’t helped one of our 600,000 customers solve.
Hirsch Tax Pros will complete these tasks every other week to make sure you’re keeping your finances organized and up to date.
Hirsch Tax Pros will complete these tasks once every quarter.
A financial statement compilation is a service provided by Hirsch Tax Pros to assist the management of a business in presenting its financial statements. This compilation service is not designed to provide any assurance regarding the information contained within the financial statements.
A financial statement compilation is the least expensive of the various forms of auditing services (the other two being a review and an audit), and so is preferred by those cost-sensitive entities whose financial statement users are comfortable with this form of engagement. However, because there is no assurance that compiled financial statements fairly present the results and financial position of a business, a compilation is not preferred by lenders and creditors.
Under a compilation, management of the business takes responsibility for the preparation and presentation of the financial statements.Hirsch Tax Pros will create sufficient documentation to provide a clear understanding of the work that we have completed. This documentation should include the engagement letter, significant issues, and any communications to management of the business regarding fraud or illegal acts noted by Hirsch Tax Pros.
Let Hirsch Tax Pros help solve your financial puzzles.
Let Hirsch Tax Pros review your financial statements. Financial statements for businesses usually include income statements, balance sheets, statements of retained earnings and cash flows. It is standard practice for businesses to present financial statements that adhere to generally accepted accounting principles (GAAP) to maintain continuity of information and presentation across international borders. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing or investing purposes.
Financial statement analysis is the process of reviewing and evaluating a company's financial statements (such as the balance sheet or profit and loss statement), thereby gaining an understanding of the financial health of the company and enabling more effective decision making. Financial statements record financial data; however, this information must be evaluated through financial statement analysis to become more useful to investors, shareholders, managers and other interested parties.
Let Hirsch Tax Pros help guide your business to further financial success!
The purpose of a finance audit is threefold. First is to confirm that procedures are in place to govern a business to obtain optimum profit levels. Second is to verify compliance with all applicable regulatory agencies. And third is to protect all business stakeholders from risk of fraudulent practices. To that end, all businesses – whether public or private – should conduct periodic audits to protect their financial security. At a minimum, a fundamental audit checklist should be used and an audit administered by an unbiased committee from within the business. However, the most prudent course is to have an audit conducted by a qualified, external audit firm twice a year. Contact Hirsch Tax Pros with any of your financial accuarcy issues and let us help you solve your puzzles.
Allow Hirsch Tax Pros deal with the IRS for you! We can negotiate the tax debt that you owe by filing an offer in compromise. An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. IRS will consider your unique set of facts and circumstances:
IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time. The Offer in Compromise program is not for everyone. Let Hirsch Tax Pros help you navigate this complicated puzzle.
Tax audit representation, also called audit defense, is a service in which a tax or legal professional stands in on behalf of a taxpayer during an Internal Revenue Service (IRS) or state income tax audit.
In the United States, during an income tax audit or examination, the IRS and all states allow a taxpayer to have an authorized representative. The representative must be authorized to practice before the IRS or state, and specific credentials are required. The types of representatives who are allowed to represent taxpayers before the IRS in income tax audits include attorneys, certified public accountants, and enrolled agents. Hirsch Tax Pros is qualified to provide this service and we have years worth of experience as well.
Hirsch Tax Pros develops the strategy used to defend the taxpayer’s position. We will assist the taxpayer in preparing all documents requested by the taxing authority and will typically attend all meetings as well as handling the correspondence on behalf of the taxpayer.
Most families or businesses think about taxes only when they, or a professional tax preparer, sit down to complete their federal, and maybe state, income tax return for the previous year. That's "after the fact" tax preparation. By then, it's too late to take certain tax deductions and credits based on strategies that needed to have been implemented during the tax year.
Unlike tax preparation, tax planning is a year-round process. Most tax-saving strategies must be carried out no later than December 31 of that tax year, and often well before that. Especially critical these days is planning for the dreaded alternative minimum tax, which is hitting even middle-income taxpayers.
Good year-round tax planning also requires good year-round record keeping. You need to be able to substantiate your claims or else you lose out on valuable tax deductions.
Hirsch Tax Pros can offer sound tax advice and planning, so you can take advantage of these cost saving strategies before it is too late.
Forensic accounting, forensic accountancy or financial forensics is the specialty practice area of accounting that describes engagements that result from actual or anticipated disputes or litigation. The work performed and reports issued will often provide answers to the how, where, what, why and who. However, ultimately the court decides.
Hirsch Tax Pros' financial forensic engagements may fall into several categories. For example:
Our forensic accountants often assist in professional negligence claims where they are assessing and commenting on the work of other professionals.
Hirsch Tax Pros' forensic accountants are also engaged in marital and family law of analyzing lifestyle for spousal support purposes, determining income available for child support and equitable distribution.
Let us help solve your life's financial puzzles.
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