Right now, at the beginning of May 2020, a lot of businesses are encouraging you to innovate. Distilleries are making hand sanitizer, bakeries are teaching online classes, and so on. This has many people asking; What should I do? How should I innovate? I love all these ideas that are happening right now but I’d caution that this level of pivoting doesn’t apply to everyone.
What if instead, you decided to think smaller? What if you decided to look at your business and tried to figure out who your ideal customers are? This group is typically your top 20% of all customers. How can you serve them better?
Once you’ve figured out who they are, how to serve them better. What would happen if you created methods and systems to do that quicker, more systematically, with even better results?
Don't work harder, streamline and innovate. Studies show small businesses earn more with a professional accountant/business advisor.
Think Smaller to Innovate Today
Mike McVay, Small Business Advisor
Download PDF below.
Coronavirus uncertainty abounds. Thankfully, by monitoring tax changes on your behalf, we can work together to navigate the right path for you and your family. Here is a round-up of tax-related laws and information to help with tax planning for 2020.
Mike McVay, Tax Accountant
Certified QuickBooks ProAdvisor
5336 N Blue Angel Pkwy
Pensacola, FL 32526
The Coronavirus pandemic has sent a shock wave through the global economy. If your business is anything like mine, you’re most likely already seeing a drop off in demand and a slowdown in traffic. Sadly, many of my clients who operate “non-essential” businesses have been forced to shut their doors to limit the spread of the virus. Many others that may still be operating are doing so at a much more reduced level of activity.All of this impacts cash. I think this crisis will be short term and I’m hoping we’ll get through this in just a few months and we’ll see both demand and economic activity significantly increase. But for now, it’s imperative to take whatever steps we can to conserve our cash. Here are three ways I’m doing just that:
1. I’m talking to my bank.
My company uses a large, multi-national bank. Like many other banks, big and small, mine has been very sympathetic to the plight of its small business customers. The people I’ve spoken to also believe that we will move beyond this crisis in months, not years, and that the economy will indeed bounce back. I’m getting them to re-commit to my credit lines and I’m already asking what’s needed to get more. I’m also discussing potential deferrals of payments or extensions of terms. So far, the response has been encouraging. As I write this, our credit and financial system is sound. And unlike the 2009 recession, capital is still readily available. I’m evaluating all financing and credit resources, while keeping my options open and doing my best to not spend.
2. I’m talking to my vendors and customers.
For my vendors who are large companies with more resources to absorb a slowdown, I’m asking for payment extensions. Big companies, like the banks I mentioned above, are also sympathetic to the plight of small businesses and are willing to bend some terms and rules to help see us through this challenge. I’m not pushing my smaller vendors and contractors yet. On the customer side, I’m stepping up our procedures to get our invoices out the door as fast possible. I’ve asked my bookkeeper to stay on top of any slow paying accounts with email and phone reminders. I’m also considering offering discounts for early payments and pushing for credit card payments. Yes, these cost a little more, but the goal here is to get cash in the bank to see my business through this challenge.
3. I’m doing a full financial review.
Just this morning, I printed out our year to date general ledger. I consider this general ledger to be the diary of my business because it shows every transaction recorded. When things are busy and the economy is strong, like it was just a few weeks ago, I sometimes tend to get careless in my oversight of expenses. Not anymore. I’m going through each account. I’m cancelling unnecessary recurring charges. I’m questioning why we’re spending money. I’m planning on putting some contractors and projects on hold. Again, my intention is to resume as usual once things get back to normal. And again, I really do believe things will get back to normal in a few months. But in the meantime, cash is king and I’m going to be very strict in how I spend for the near term.
Here is what I’m NOT doing. I’m not laying people off, because unemployment has been tight and when things get back to normal I’m going to need them. Plus, it’s just not right. I’m also not skimping on sales and marketing investments, because those things – like advertising, website development and customer relationship management software – are the things business people need if demand falls off.
Finally, I’m not panicking. I’m lucky that I have some cash in the bank because the last few years have been good economically. Because of that, I can make better decisions. If that’s not your situation, then I hope that not only will your business survive this crisis, but that you also take away this lesson: keeping enough cash is critical to survive any downturn.
Mike McVay, Small Business Accountant
Personal Tax Returns Due April 15, 2020
2020 Tax Deadlines for Filing 2019 Business Returns
Partnership Tax Deadlines:Due Date:
Original tax deadline for partnerships (Form 1065)
March 16, 2020
Extension tax deadline for partnerships (Form 1065)
September 15, 2020
S Corporation Tax Deadlines:Due Date:
Original tax deadline for S Corporations (Form 1120S)
March 16, 2020
Extension tax deadline for S Corporations (Form 1120S)
September 15, 2020
C Corporation Tax Deadlines:Due Date:
Original tax deadline for C Corporations (Form 1120)
April 15, 2020
Extension tax deadline for C Corporations (Form 1120)
October 15, 2020
Sole Proprietor Tax Deadlines:Due Date:
Original tax deadline for sole proprietors and individuals (Form 1040)
April 15, 2020
Extension tax deadline for sole proprietors and individuals (Form 1040)
October 15, 2020
Nonprofit Tax Deadlines:Due Date:
Original tax deadline for exempt organizations (Form 990)
May 15, 2020
Extension tax deadline for exempt organizations (Form 990)
What Flow-Through Entities (S Corps or Partnerships) Need to Do By Their Tax DeadlineEntities—like S Corps and Partnerships—get the name “flow-through” or “pass-through” because they do not pay income tax. As a flow-through, your business’s income and losses get passed on to the partners, owners, and shareholders. So when your flow-through entity files a Form 1065 to the IRS, you must also issue Schedule K-1s to each partner or shareholder for them to report on their individual returns. For this reason, if you plan on electing to extend your tax deadline, be sure and let all partners and shareholders know so they can do the same!
What Individuals and C Corps Need to Do By Their Tax DeadlineAs an individual (including sole proprietors) or corporation, your taxes are due on the fifteenth day of the fourth month of your fiscal year or the fifteenth day of the tenth month if you file an extension. This means you will file your taxes or an extension on April 15, 2020, and pay any tax liability you owe. If you ask for an extension, you will file taxes by October 15, 2020, but you will still need to pay taxes by April 15.
What Exempt Organizations (Nonprofits and Charities) Need to Do By Their Tax DeadlineExempt organization, such as a nonprofit or charity, file taxes on the fifteenth day of the fifth month of your fiscal year or the fifteenth day of the eleventh month if you file an extension. For your 2019 return, you’ll need to file your taxes or an extension by May 15, 2020. If you ask for an extension, you will have until November 16, 2020 to file your return, as the fifteenth falls on a Sunday in 2020.
When to Consider the Tax Extension for Your 2019 Business TaxesNeed extra time to get organized? Did something disruptive from your personal life take priority? Did your 2019 business activities have way more tax consequences than you expected? Extending your return deadline doesn’t need to be a stressful decision, in fact, it should help eliminate stress!
C Corporations, Partnerships, and S Corporations use Form 7004 to request a 6-month extension; individuals use Form 4868. For nonprofits, you can request a 6-month extension using Form 8868.
Millions of taxpayers are eligible but choose not to claim the thousands of dollars this tax credit offers.
Most Americans' goal during tax season is to pay as little tax as possible, and ideally to get a refund that's as large as you can get. Unfortunately, preparing taxes is complicated, and the complex laws governing taxation are so challenging to navigate that many taxpayers end up not claiming tax breaks that could put thousands of extra dollars in their pockets.
It might come as a surprise to learn that the IRS actually wants to encourage taxpayers to take tax breaks, but that's exactly what it's doing on Jan. 31. With the 14th installment of its annual EITC Awareness Day, the tax agency wants to make sure everyone knows about the benefits of claiming the earned income tax credit -- a tax break that it believes 6 million eligible taxpayers leave untouched.
Image source: Getty Images.
How does the earned income tax credit work?
The EIC Credit helps workers with modest income levels save on their taxes. For the 2019 tax year, credit amounts can be up to $6,559 for taxpayer families with three or more children, and smaller limits of $5,828, $3,526, and $529 apply to those with families of two, one, or no children, respectively. Below, you'll see the income limits that apply to the credit for 2019, putting an upper bound on how much money you can make and still receive a portion of the credit amount.
Income Limit if No Children
Income Limit if 1 Child
Income Limit if 2 Children
Income Limit if 3+ Children
Single, head of household, or widowed
Married filing jointly
Data source: IRS.
Best of all, the earned income credit is a refundable credit. That means that even if you otherwise wouldn't owe any tax, you can still file a return and get a refund back that includes the credit amount. That's a fairly unusual tax break, and it's one that can sometimes justify filing a tax return even if you wouldn't ordinarily be required to do so.
Why is the IRS promoting the earned income tax credit?
The sad thing about the earned income tax credit is that so many people don't choose to claim it. The IRS estimates that 25 million taxpayers received the earned income tax credit last year, with the average amount received coming in just over the $2,500 mark. However, one out of every five eligible taxpayers failed to claim and receive the credit. Doing the math, that leaves roughly 6.25 million taxpayers having missed out.
IRS Commission Chuck Rettig explained the rationale for the IRS outreach effort:
The EITC is a vital tax credit that helps millions of hard-working working families around the nation. It's critical that people review the credit to see if they qualify. Increasing awareness about the EITC is important, and the IRS is proud to support the ongoing efforts by partner groups across the country for sharing this critical information with taxpayers.
In particular, the IRS identified several groups of taxpayers who are most likely to miss out on the credit. They include the following:
- Those without children.
- Those who live in nontraditional families, such as where grandparents are raising grandchildren
- Those who saw their filing status or income change.
- Those with limited English skills.
- Members of the Armed Forces.
- Those who live in rural areas.
- Native Americans.
- People with disabilities or who care for those who are disabled.
If you qualify for the earned income tax credit, make sure that you claim it. There's no reason to pass up hundreds or even thousands of dollars added to your tax refund. The IRS EITC Website provides a tool to help you figure out if you qualify and what the amount of your credit would be. With even the IRS wanting you to take advantage of the credit, it's worth the time as you're preparing your 2019 tax returns to check and see if you qualify.
McVay Business Services
Mike McVay, Tax Accountant
5336 N Blue Angel Pkwy
Pensacola, FL 32526
WHY DO I NEED ACCOUNTING AND BOOKKEEPING? QUALITY ACCOUNTING AND BOOKKEEPING SERVICES IN PENSACOLA FL
Where can you get quality accounting, tax, and financial management services in NW Florida?
The answer is McVay Business Services in Pensacola FL. Since 1991, McVay Business Services has had our accounting and bookkeeping services designed and set to make jobs go easier. By handling a company’s accounting and payroll, we are giving their head department more time to focus on building their business in Florida. McVay Business Services has several individualized services for small businesses in industries like real estate accounting, legal accounting, hospitality accounting, manufacturing and wholesale trade accounting, and many other business industries
WHY DO I NEED ACCOUNTING AND BOOKKEEPING?
McVay Business Services is a QuickBooks Certified Pro Advisor. We are also certified by the National Association of Tax Professions, Payroll Administrators.
It is important for our customers to know that our team is QuickBooks Certified. QuickBooks is a computer software was developed by Intuit. It is used for accounting purposes for businesses. It is a helpful financial management system. It maintains a record of any company’s accounting in a structured and highly organized way. With QuickBooks,
McVay Business Services can look over a business’ budget, profit and loss standards, and customer/client information.
Some of the other accounting services of McVay Business Services include the following:
We provide our services to businesses of all sizes – small or large. Mike McVay, Tax Accountant keeps up with the federal tax changes and we know how to handle business taxes.
For more details on one of the services provided by McVay Business Services, you can visit our Pensacola office located at 5336 N Blue Angel Pkwy Pensacola, FL 32526.
You can call them too at 850-725-5696. Call McVay Business Services today and get your business started on a new financial journey.
Mike McVay, Accountant
If you are in need of a payroll service provider, look no further. McVay Business Services has full service Payroll Solutions at small business prices.
This payroll program provides customized comprehensive solutions for all of your payroll needs. This specific type of service provides personalized service and support to fit your business’ unique needs. It is easy and convenient payroll services that can be found only through McVay Business and Payroll Services in Pensacola, FL. 850-725-5696
With McVay's Payroll Solutions, you leave all of your payroll in the hands of an experienced payroll company. McVay Business Services in Pensacola, FL will make sure all of your employers get paid for the correct amount of hours they work. They have worked with businesses of all shapes and sizes. McVay Business Services understands the important function payroll plays in the business.
HERE IS A LIST OF PAYROLL SERVICES YOU CAN GET FROM McVay Business Services in Pensacola, FL.
If you are interested in McVay Business Services in Pensacola, FL payroll services at 850-725-5696.
McVay Business Services in Pensacola, FL also offers businesses with tax preparation services, financial management services, and accounting services. McVay Business Services in Pensacola, FL and accountants are standing by and ready to help your business more forward and get more successful than it is now.
You can get a free estimate for their payroll services. Answering just a few easy questions can tell you how much money you can possibly save with McVay Business Services in Pensacola, FL as your payroll company. 850-725-5696. Mike McVay, Payroll Accountant. Send email with pay frequency and number of employees to: Mike@MikeMcVay.com for quote.
Link to the new I.R.S 2020 W-4 Withholding Calculator
Click Here - Download new W-4 if you want to change w/h taxes on at your job.
1: Complete the I.R.S Calculator Interview
2: Download the new 2020 W-4 form
3: Complete the new 2020 W-4 form with the info on the calculator
4: Sign and date your new W-4 and turn into your jobs admin
Mike McVay, Tax Accountant
Authorized I.R.S Fresh Start Program Center
A Warning about Turbo Tax
Remember TURBO TAX is NOT Free. Well it is, but if you have more than just a W-2 you will have more forms and have to pay anywhere between 39.95 & 250.00. The audit protection is a joke with Turbo Tax as they only cover if the actual calculation are incorrect. Well its software so the calculations will never be wrong, yet it will allow you to take deductions and credits you are not entitled to if you interpret the questions incorrectly.
This is from a client that came to McVay Business Services last year after spending days and days working with Turbo Tax. After his nightmare she received 2 letters from the I.R.S stating his return was incorrectly prepared.
A TurboTax Seminaro I don't want any of you to fall into. I went to file my taxes yesterday the same way I have done for several years, with the TurboTax free file. I noticed a few things that I thought I'd share:
When I got to the section for the child and dependent care credit, the software kept telling me that I don't qualify. I knew that I still qualified for the credit so I googled it. Turns out, when you enter your W2 at the beginning for you and your spouse, it defaults both of them to one persons name (so it appeared that I made too much money for the credit, while my husband had no income). As soon as I went back and assigned one of the W2 to my husband I qualified for the credit, which boosted my refund by $600.
Because I filed for a specific credit, TT software said I needed to pay the $39.99 as the free software didn't cover one of the forms I'd need done to file. I was already finished by this point and was getting money back so I figured ok, I'll pay it, and that I will just file by hand next year. TT gave me the option to pay this fee out of my refund, saying something like "no need to reach for your wallet, we can just take this from your refund". Nowhere on this page did it indicate that there would be a fee to do so. When I was completely done and ready to file, TT asked me to consent to the charges and hit submit. I noticed that the fees suddenly went from $39.99 to 79.99 and I didn't understand why until I searched the internet and found dozens of complaints from last year. Apparently TT is charging an extra $39.99 in order for them to take the original fee from your return with very little explanation and quite deceptive language on their website. I paid the original fee with my credit card and filed without issue.
I know this is a bit strange and I am not trying to blast TT in general, but I do think it is fair that people be aware of these fees and quirks of the software. Hope this helps someone!
After filing, I received 2 letters from the I.R.S, said I owed another $2,174.00 with penalties and interest. After finding Mr. McVay, Tax Expert in Pensacola, FL I found that several of the questions Turbo Tax ask was ambiguous and I guess I thought my answer should be different. When I called Intuit for help they said they only guarantee the calculations are right and that I am on my own when it comes to the questions that Turbo Tax ask. Well, its bye bye to Turbo Tax. Mr. Mike McVay, Tax Accountant not only corrected my return but was able to abate all the penaities associated with the I.R.S and set-up a payment plan so I can pay monthly for this extra tax I was not expecting to owe. I will always from now on use a local Pensacola Tax professional to prepare all my income taxes.
Pensacola FL Tax - McVay Business Services
5336 n Blue Angel Pkwy
Pensacola, FL 32526
Remember we also do:
Please review these items for business taxes....
We are an approved IRS Fresh
Start Program center.
Mike McVay, Tax Accountant
McVay - Taking Business to the next level with Virtual Accounting Services. Accurate and more Affordable than ever.............
Benefits of Virtual AccountingIn today’s fast-paced world, where everything is available to you from clicks away on your smartphone, where cloud technologies are running businesses, where global commerce is more streamlined than ever, and where there is still not enough hours in the day for owners of small businesses, there’s become an increasing demand for Virtual CFO & other accounting solutions. Whether owners want to streamline their accounts payable department or receive expert advice to help make key strategic decisions, Virtual CFO & accounting services are providing clients with service platforms that are easy-to-use, convenient, and offer modern solutions for today’s modern obstacles challenging owners.
Here are some of the benefits realized by adopting the virtual accounting model for your business:
Cost-Effective – By hiring Virtual Accountants instead of a full-time employee, businesses incur less costs and profit more. Businesses don’t spend money on employee taxes, health insurance, holiday pay, PTO, and sick pay. The costs associated with providing a physical office space with a desk and computer are eliminated in the virtual accounting model. Virtual accounting firms have minimal overhead themselves, meaning premier service is provided at low costs.
Efficient & Flexible – Virtual Accountants work around your schedule, building timelines based on your needs. This remote model makes them accessible at your fingertips while having all the data available at the tips of their fingertips. When dealing with Virtual Accountants, you will never find yourself in a scenario where your CPA tells you, “I’ll get that sent over to you when I get back to my office…” Virtual firms aren’t constrained to office hours and can be reached through various communication channels wherever you may be. Have you ever had to find time on your lunch break to go to your accountants office to drop off your tax documents or sign an e-file authorization form? In the virtual age, those days are over.
Sustainability – Virtual Accountants are nearly 100% paperless. With cloud technology and secure infrastructure, all important documents can be shared and even signed without having to print out a single piece of paper. It’s just sad how much paper is wasted through the traditional brick and mortar firm model through in the course of a day just so they can tick red marks on a financial report with a pen just to be redone, reprinted, and marked up all over again in a wasteful cycle of preparation and review.
Staffing Concerns – If there’s an industry where employee burnout is truly an epidemic, it’s accounting and finance. Employee turnover is at an all time high. Finding qualified accountants who align with the company culture is time consuming. On the other hand, the costs associated with hiring and training new employees are eliminated when hiring an outsourced team to handle your accounting functions. Employees quitting out of the blue, calling in sick, or taking extended vacations are no longer the concern of the business owner or CEO for outsourced services, allowing your team to focus on what they do best and the function at the core of your business.
It’s true that Virtual Accounting might not be for everyone. Unfortunately for those who have, voluntarily or involuntarily, rejected technology, they will not be good candidates. Virtual Accounting and other business solutions is a full on embrace of technology, adaptability, and flexibility. Whatever the old way was, there’s an easier, better, and more affordable way. For the majority of the people and businesses out there, the question really becomes not why partner with a Virtual CFO but when?
Virtual Accounting is the future of outsourced accounting services. Technology has rapidly evolved everyday tasks as well as how we communicate and go about our day-to-day business functions. Administrative assistants are being replaced by bots, filing cabinets have been replaced by services like Dropbox, and signing a legal document no longer involves a pen and paper. It is no different in the world of accounting. Technologies allow for automatic syncing and categorization of data, video conferencing, screen sharing, easy transmission of files, password management, legal digital signatures, and so much more that renders meeting in person less of a necessity in order to accomplish business essentials. Brick and mortars are emerging little by little as the less dominant business model, as virtual solutions provide a sustainable model that create new opportunities free from the boundaries imposed by the brick and mortar model.
Mike McVay, Certified Virtual Accountant
When you owe the IRS a substantial amount of money, you might wonder how you can get it paid in full without incurring costly interest and penalties. Rather than going deeply into debt, you could pay off what you owe affordably by making use of the IRS Fresh Start Program. You can decide if this program is right for your tax debt situation by learning what it is and how to apply for it today.
This program simplifies the process of paying back hefty tax debts. It also helps people avoid many of the detriments of owing a tax debt to the IRS including:
- Tax liens
- Seizure of assets
- Wage garnishments
The IRS initiated its Fresh Start Program in 2012 and expanded it in 2017 to ease the financial burdens of taxpayers who owe up to $50,000 in taxes. It is available to both business owners and individual taxpayers.
Moreover, the premise of its design took into consideration the hardships faced by people who experience circumstances like unemployment. Taxpayers who are unemployed for longer than 30 days may be eligible to have their IRS penalties waived. They also could have request a six month extension to file and pay their taxes without fear of costly IRS penalties.
Repayment Options under the IRS Fresh Start Program The IRS Fresh Start Program offers three repayment options to taxpayers. All three options allow people to pay off their tax debts legally and satisfactorily. They also allow people to avoid further penalties and interest that could cause undue financial hardships.
The first option available to people is called an extended installment agreement. An extended installment agreement is designed for people who owe $50,000 or less to the IRS. It grants taxpayers up to six years to pay off what they owe without incurring additional penalties and interest. It also stops IRS collection activities like wage garnishments, tax liens, and seizure of assets.
This option is one of the most commonly utilized under the IRS Fresh Start program. The payments that taxpayers make each month will be based on how much money they currently make along with the value of the assets they have at their disposal. The payments are designed to be affordable so taxpayers can make them on time and without financial difficulties each month.
Mike McVay, IRS Fresh Start Program Authorized - 850-725-5696
Back taxes are not an issue at our firm!
Tens of thousands of people with modest incomes are at risk of losing health insurance subsidies in January because they did not file income tax returns, federal officials and consumer advocates say.
Under federal rules, anyone who receives an insurance subsidy must file a tax return to verify that the person was eligible and received the proper amount of financial assistance based on household income.
When the federal insurance marketplace opens for the third enrollment season next Sunday, users will see a new question: “Did your household file a 2014 tax return and reconcile any premium tax credit you used?”
If the answer to that question is no, consumers risk losing the subsidies they receive to help pay premiums. Without such assistance, many would find insurance affordable.
Many of the people potentially affected have incomes so low that they would not otherwise have to file tax returns. But if they received insurance subsidies in 2014, they were required to file this year.
In July, the Internal Revenue Service said 710,000 people who had received subsidies under the Affordable Care Act had not filed tax returns and had not requested more time to do so.
If those people do not return to the marketplace this fall, they may be automatically re-enrolled in the same or similar health plans at full price. And when they receive an invoice from the insurance company next year, they may be shocked to see that their subsidies have been cut to zero.
Erin M. Lackey, 41, of Jacksonville, Vt., was one of many people who received letters from the I.R.S. saying they were at risk of losing their tax credits.
Her mother, Ruth J. O’Hearn, a nurse who helps her daughter with insurance matters, described her own reaction.
“At first, I was angry,” Ms. O’Hearn said. “Then I felt frustration and fear. You can’t be without insurance. Without the subsidy, health insurance would be unaffordable. Without insurance, the cost of medical care would be unaffordable.”
The I.R.S. also said 760,000 taxpayers had received subsidies and filed returns but had not attached the required form comparing the subsidies paid with the amount they were entitled to receive. Taxpayers describe that document, I.R.S. Form 8962, as daunting.
“The premium tax credit form, the dreaded 8962, is really hard,” said Eileen P. Duggan, a piano teacher and freelance writer in Maplewood, Mo., outside St. Louis, who filed the form with her tax return. “It’s enough to make you cry, that form. It was almost impossible to figure out.”
The federal government provides subsidies in the form of tax credits, which cover about 70 percent of premiums, on average. The I.R.S. commissioner, John A. Koskinen, said 97 percent of people who received such assistance claimed it in advance, before filing their taxes. The amount of the subsidy is based in part on how much income the recipient expects to have in the coming year.
Two-thirds of people using the federal exchange have incomes less than twice the poverty level (less than $23,540 a year for an individual).
On their tax returns, consumers must compare the tax credits they received based on their projected income with the amount they were legally eligible to receive based on their actual income. If they received more than they were entitled to, they must pay back the excess, and the government can deduct it from their tax refunds.
People who lose their subsidies on Jan. 1 may, in some cases, have them restored if they go to HealthCare.gov, attest to having filed tax returns for 2014, and are found eligible for financial assistance before the open enrollment period ends on Jan. 31. However, if consumers take these steps in the last two weeks of January, their subsidies will not resume until March 1, officials said.
If consumers attest, under penalty of perjury, that they filed their tax returns, and if they select health plans by Dec. 15, they can keep subsidies for coverage starting Jan. 1.
Don't loose your credit for 2020, Current tax returns are required. Mike McVay, Tax Accountant
Past year tax return expert - 850-725-5696
Not suitable for handling difficult monetary situations – For people who own a business in which a number of transactions take place every day, hiring the services of an accountant will be a better option.
Lacks human touch- When you hire the services of a tax professional, you can ask him or her further questions related to future tax planning whereas Turbo Tax software cannot offer such information. McVay is among the leading tax professionals in the Pensacola, FL area offering tax preparation services to business ventures all over the local area. These services are meant for enabling the business organizations to concentrate on their core activities, reduce costs and maximize profits.
- Turbo Tax may look easy, however the set-up, questions the software require will set you back many hours of hard work.
- Studies show that I.R.S focuses on individuals using cheap software when they select people for an audit. did you know when you e-file your taxes that the I.R.S has special header codes alerting them if this is a paid registered preparer with the I.R.S. or if you used a certain tax product to prepare your own taxes.
- Online help or live CPA with turbo tax is not always helpful. Most the online help leaves the taxpayer to decide the proper tax circumstance and is all based on the individual's interpretation of the advise. Most CPA's on the live help are very reluctant to give actual advice as they are bound by state laws and also legal liability if they give advice that may not totally match your situation.
- Turbo Tax does not compensate for incorrect answers or advice. Tax Professionals made sure they advise you properly and will take care of any issues and most of the time any penalties that they may have caused.
- Surveys show that most taxpayers being audited after using Turbo Tax had to pay back some of their refunds and that includes penalties.
Why Hire a Tax Professional?
- It can save you money. ...
- It saves you time. ...
- Tax professionals can answer your questions and resolve issues. ...
- The tax code is very complicated. ...
- You gain peace of mind. ...
- Making mistakes can be very costly. ...
- You benefit with money-saving tax planning. ...
- Your previous returns can be also reviewed.
5336 N Blue Angel Pkwy
Pensacola, FL 32526
See if you qualify for IRS hardship relief
(including Fresh Start Program)
Have you received an I.R.S. Letter?
McVay Voted Best Tax Accountant in Pensacola for I.R.S.Tax Issues and
Past Year Tax Return Filing Specialist.
It’s a little confusing to tell when the IRS is about to seize assets because the second to last notice is also called Notice of Intent to Levy but it doesn’t advise you of your right to a hearing. This notice does not give the IRS the authority to take your assets like the last one.
Normally you will get a series of five notices from the IRS before seizure of assets can take place. Only the last notice
The good news, as mentioned above, is that normally the IRS sends you five letters (five for individuals and four for businesses) before actually seizing your assets. These notices are about five weeks apart so that you have at least four or five months to prepare for the final notice. You should not be surprised when the day comes for you to take action to prevent drastic consequences from IRS collection activity. Here are the collection letters the IRS mails to individuals:
- CP14 (Notice of unpaid taxes)
- CP501 (Reminder of unpaid taxes)
- CP503 (Second reminder of unpaid taxes)
- CP504 (Notice of Intent to Levy) May seize state tax refund by stated deadline.
- Letter 1058 or Letter 11 and other letters (Final Notice of Intent to Levy and Notice of Right to Appeal)
Three Action Steps To Take When You Receive the Final Notice of Intent To Levy:
- First of all, read the notice carefully. It should state “Notice of Intent to Levy and Notice of Your Right to Appeal”. If it only states “Notice of Intent to Levy” it is not the final one giving the IRS the authority to seize your assets. If the letter does not give you notice of your right to appeal this collection action by the IRS you still have one notice to go before a levy can take place. Another way to know whether the notice is the one that gives the IRS the right to levy your bank account or seize other assets is the designation of the notice found at the top right of the notice. The final notice is an LT11 or L1058 (and others as well). The one designated as CP504 is the second to last notice mentioned above. This one does not give the IRS the right to levy because it does not contain a notice of your right to appeal this action by the IRS.
- The next step you should take is notice the date when the IRS can actually take action to seize your assets. It is listed on the notice. Here is the language used and found around the middle, left side of the first page: (It isn’t in bold lettering which I have used to highlight the wording used.)We haven’t received a payment despite sending you several notices about your overdue taxes. The IRS may seize (levy) your property or your rights to property on or after April 1, 2017.
In this example you need to take action by April 1, 2017 or risk a levy action by the IRS. If you ignore this deadline you might be dismayed when you try to get money from your ATM and realize there is no money in your account. Or your employer might tell you that a significant portion of your paycheck has been garnished by the IRS. Fortunately, you can prevent this from happening to you.
- File an appeal. The third step to take when you receive this last Notice of Intent to Levy and Notice of Your Right to a Hearing is to file an appeal. This will prevent the IRS from actually levying your assets and give you time to consider your options. By filing an appeal you take the file away from the Collections Division and place it in the hands of the Appeals Division and this will normally give you several months to resolve your situation.
IRS laws and regulations can be confusing and most people will not be able to figure out their rights and settlement options when negotiating with the IRS. By consulting with an experienced IRS tax resolution specialist you can usually resolve your tax liability in your best interest. An Tax Accountant like Mike McVay at McVay Business Services, experienced IRS tax resolution specialist in Pensacola, FL is your best choice. Mike McVay has 5-star reviews and his knowledge is unmatched in the experienced IRS tax resolution specialist area. will represent you before the IRS so that you do not have to have any contact with the IRS.
McVay Business Services
Experienced IRS Tax Resolution Specialist
5336 N Blue Angel Pkwy
Pensacola, FL 32526
Bookkeeping takes up more time than you can afford!
If your business is growing, you can only get away with Do-It-Yourself bookkeeping for so long.
Maybe you have a really great spreadsheet template you found online. Maybe you even shelled out for some accounting software. But as your business expands and your financials get more complex—you’re going to get up one day, look at yourself in the mirror, and say, “I need to hire a bookkeeper.”
While there’s no hard-and-fast rule to when you should bring on hired bookkeeping help, there are some common, telltale signs that entrepreneurs experience just before they reach the tipping point.
If you’re suffering from any of the following symptoms, it’s probably time to hire a bookkeeper.
Don’t take your own time for granted. Not only does overworking lead to burnout, but every minute you spend on a task has a dollar equivalent.
First, start tracking how much time you spend per week on bookkeeping. Then, using an online calculator, determine how much your time is worth, and figure out how many “dollars” you spend on bookkeeping per month.
Compare your “salary” as your own bookkeeper against the price of professional bookkeeping. Once you treat the time you spend bookkeeping as an actual expense in cash, you’ll have a better idea of whether you should keep doing it.
When you fall behind on bookkeeping, your books stop reflecting the actual state of your finances. That makes it harder (sometimes impossible) to understand cash flow and accurately gauge the health of your business.
For instance, if your Cost of Goods Sold (COGS) hasn’t been updated in six months, you can’t subtract if from your revenue in order to determine how much profit you’ve earned in that time.
Which means you’re blind to how much money you’re actually making—and the steps you can take to increase your income.
What’s more, if your books aren’t up to date, you’ll have a ton of catch up bookkeeping to do during tax season, making a typically stressful time of year even more difficult.
With a qualified bookkeeping solution, you can expect to receive monthly financial statements, so you’ll know where your money is going to and coming from.
You missed out on tax write-offs
Suppose you just found out that, since your home is more than 50 miles from your place of work, you’re allowed to deduct some of the cost of commuting.
That’s great news. Only, now you’re thinking about all the years you spent without filing this deduction, the extra money you could have saved, and how you could have spent it. Images of an in-ground pool dance in your head.
The sooner you know about small business tax deductions, and the sooner you take advantage of them, the sooner you’ll benefit.
Part of a bookkeeper’s job is to take every business expense you incur and categorize it properly. In the process of doing so, they’re able to spot obvious deductible expenses such as mileage.
Ultimately, an accountant with experience in your industry is most qualified to give you comprehensive guidance regarding tax write-offs. But many business owners only talk to their accountants during tax season. A good bookkeeper who understands your business’s needs can help you out during the rest of the year.
Mike McVay, QuickBooks Accountant (Certified) with his CFO services covers all your bookkeeping, accounting, payroll and tax filing obligations with reasonable rates for small business.
Call Mike @ 850-725-5696
Certified QuickBooks ProAdvisor & Licensed Tax Accountant Pensacola, Fl
Mike McVay, Accountant -Experienced IRS Tax Resolution Specialist
With over 20-years experience working with individuals, families & small business owners allows me to share helpful information and long term knowledge to help with their income tax, I.R.S tax issues and businesses.