1. You don’t have all your tax and financial information yet.If you have a small business, for example, you may still be working on the books. Or you could be waiting for a letter confirming a charitable contribution. You may even still need the basis of stock you sold or a specific document from a financial institution. If you’re waiting on information that’s critical to helping you file your return accurately, it’s likely best for you to wait until you have that information.

2. A partnership or other organization hasn’t sent out forms.If you are a partner in a business and are waiting to receive your Schedule K-1, it’s perfectly fine to file an extension and wait to receive that document.

3. You have an emergency that prevents you from completing your return.Unexpected hospitalization or long-term illness, a family emergency, or just crunch time at work can make it difficult to finish your return. No worries. Give yourself a little more time for this important financial task.

4. You need more time to make contributions or change a retirement plan.If you are considering funding a retirement plan or starting a new one for the 2017 tax year, you may want to file an extension so you have more time to complete that task. Contributions to an IRA are tax-deductible, which you can claim on your 2017 return to reduce your taxable income. Just remember, you must make that decision by the April 17 filing deadline.

5. You want to make elections on your return, but you won’t know which election is best until later.If you have losses that you can carry back to prior years, you may not know until later in the current year if that’s a good idea or if you should use the losses on a future tax return.

Mike McVay, Tax Accountant will file all client tax extensions at no charge. Call Mike McVay today to get the process started. 
5336 N Blue Angel Pkwy Pensacola, FL 32526 * 850-725-5696
Mike@MikeMcVay.com * www.PensacolaFLTax.com 

3 Ways for Nonprofits to Level up Their Finances. Nonprofit organizations all face a familiar crunch: how to do more with less. Their missions are noble. But there’s always a limited number of employees to get the job done.
Now, with the advancement of cloud-based technology, accounting automation, and mobile payments, nonprofits have the ideal opportunity to level up their finances and maximize their resources.
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McVay Business Services is a Bill.com Specialist. Bill.com & QuickBooks Online subscription is included in all non-profit weekly or month CFO services - Mike McVay, Certified QuickBooks ProAdvisor. QuickBooks Accountant & Bookkeeper * 850-725-5696

Nonprofit Champion #1: Accounting Automation
Accounting automation digitizes grunt work and runs those processes for you.
Let’s start with bill payment. If three people need to see an invoice to approve it for payment, there’s typically an owner of the process who is tracking people down, sending reminders, and continually checking where it is in the review process.
While this process is important (you have to pay the bills!), shouldn’t there be a way to make it easier?

With accounting automation for bill payment:

• An invoice enters the system.
• The system begins the review process based on the non-profit’s guidelines and the information in the invoice
• It alerts the first reviewer and will remind them if they haven’t responded in a certain amount of time.
• It continues this process through to the release of payment.

Time Savings: With automation like this, the time your nonprofit spends on bill payment can be cut by at least 50 percent. Plus, if you integrate with solutions like QuickBooks Online or Xero, all data will automatically sync between systems. You have real-time, accurate data always at your fingertips.

Nonprofit Champion #2: Mobile Payments and Mobility
Nonprofits—and their donors—are often spread across a country, continent, or beyond. Oftentimes, sitting at a desk every day isn’t an option for executives and employees. They visit donors, hold fundraisers, visit with volunteers, and more. If they can’t work on the go, they’re limiting their contributions to the organization.
Imagine if you had a dangerously close-to-overdue bill. All non-profits face tight budgets, and a late fee means an unnecessary and costly expense. The only person who can sign the paper check is traveling and won’t be in the office until next week.
What do you do?
Along with automating accounting, you must mobilize it. That includes the ability to pay from mobile devices. Adopt systems that are mobile-compatible, so that activities normally confined to paper or certain workstations don’t impair progress. In the example above, that executive could view the bill and any related documents or notes on a mobile app and simply swipe to authorize an ACH payment.

Time savings: Incalculable. Can we use that when talking about accounting?

Nonprofit Champion #3: Audit-ready tracking
Audits are a way of life for nonprofits. In order to retain their status, they often undergo them on an annual basis.
This process can be inefficient, devours valuable time, and typically looks like this:

• Digging through files
• Gathering paper bills and invoices
• Finding canceled checks
• Rounding up contracts and other related documents
• Putting the pile on a conference room table
• Opening the doors to the auditor
• Spending a week working with the auditor to find additional documents
• Cleaning up and refiling everything once you’re done

Mike McVay is an experienced public accountant with affordable solutions for non-profit bill pay, non-profit payroll services and QuickBooks Accounting 850-725-5696

​What if everything you needed for an audit could be handed over in just a few clicks?
With automation, every activity and workflow is tracked and archived—from the bill’s entry to the system, through each reviewer, all notes, approval, payment, and even check images. The nonprofit gives the auditor an audit-level access to the system. From there, the auditor can locate the information they need to complete their work—they don’t even have to be onsite. They can conduct the audit from any location in a fraction of the time it normally takes.

Why the IRS audits peopleThe IRS conducts audits to minimize the “tax gap,” or the difference between what the IRS is owed and what the IRS actually receives. Sometimes audits are random, but the IRS often selects taxpayers based on suspicious activity.
We’re against subterfuge. But we’re also against paying more than you owe. As you walk the line this tax season, here are seven of the biggest red flags likely to land you in the audit hot seat.
1. Making math errorsWhen the IRS starts investigating, “oops” isn’t going to cut it. Don’t make mistakes. This applies to everyone who must file taxes. Don’t accidentally write a 3 instead of an 8. Don’t get distracted and forget to include that final zero. Mistakes happen, but make sure you double- and triple-check your numbers if you’re doing your own taxes. You’ll be hit with fines regardless of whether your mistake was intentional. If your math is a little shaky, using good tax preparation software or a tax preparer near you can help you avoid unfortunate errors.
2. Failing to report some incomeEasy way to score an audit? Don’t report part of your income.
Let’s say you’re employed herding sheep for Farmer Joe and you pick up a little extra cash writing articles for a sheep-shearing publication on a freelance basis. You may be tempted to submit only the W-2 form from your herding job and keep the freelance writing income on your Form 1099 under wraps. (A 1099 reports nonwage income from things like freelancing, stock dividends and interest.)
Well, guess what? The IRS already knows about income listed on your 1099 because the publication sent it a copy, so it’s only a matter of time before it discovers your omission.
3. Claiming too many charitable donationsIf you made significant contributions to charity, you’re eligible for some well-deserved deductions. This bit of advice is common sense: Don’t report false donations. If you don’t have the proper documentation to prove the validity of your contribution, don’t claim it. Pretty simple. Claiming $10,000 in charitable deductions on your $40,000 salary is likely to raise some eyebrows.
4. Reporting too many losses on a Schedule CThis one is for the self-employed. If you are your own boss, you might be tempted to hide income by filing personal expenses as business expenses. But before you write off your new ski boots, consider the suspicion that too many reported losses can arouse. The IRS may begin to wonder how your business is staying afloat. IRS Publication 535 has details.
We’re against subterfuge. But we’re also against paying more than you owe.
5. Deducting too many work expensesAlong the same lines as reporting too many losses is reporting too many expenses. To be eligible for a deduction, purchases must be 1) ordinary and 2) necessary to your line of work. A professional artist could claim paint and paintbrushes because such items meet both requirements. A lawyer who paints for fun and doesn’t turn a profit on the works couldn’t claim art supplies as a deduction. The question to ask is: Was the purchase absolutely necessary to performing my work duties?
6. Claiming a home office deductionHome office deductions are rife with fraud. It may be tempting to give yourself undeserved deductions for expenses that don’t technically qualify. The IRS narrowly defines the home office deduction as reserved for people who use part of their home “exclusively and regularly for your trade or business.” That means a home office can qualify if you use it for work and work only. Occasionally answering emails on your laptop in front of your 72-inch flat screen TV doesn’t qualify your living room as a deductible office space. Claim a home office deduction only if you have set off a section of your home strictly for business purposes. Be honest when you report expenses and measurements.
7. Using nice, neat, round numbersIn all likelihood, the numbers on your 1040 form and supporting documents will not be in simple, clean intervals of $100. When making your calculations, be precise and avoid making estimations. Round to the nearest dollar, not the nearest hundred. Say you’re a photographer claiming a $495.25 lens as a business expense; round that to $495, not to $500. An even $500 is somewhat unlikely, and the IRS may ask for proof.

When are 2018 Business Taxes Due?Using your entity type, you can identify what your deadline is for filing business taxes and what it would be if you elect to take advantage of the extension, but you’ll also need to take weekends and federal holidays into account.
The following table covers when each type of business entity needs to file 2018 taxes in 2019 (using the calendar year):
Partnership Tax Deadlines:Due Date:
Original tax deadline for partnerships (Form 1065)March 15, 2019
Extension tax deadline for partnerships (Form 7004)September 16, 2019
S Corporation Tax Deadlines:Due Date:
Original tax deadline for S Corporations (Form 1120S)March 15, 2019
Extension tax deadline for S Corporations (Form 7004)September 16, 2019
C Corporation Tax Deadlines:Due Date:
Original tax deadline for C Corporations (Form 1120)April 15, 2019
Extension tax deadline for C Corporations (Form 7004)October 15, 2019
Sole Proprietor Tax Deadlines:Due Date:
Original tax deadline for sole proprietors and individuals (Sch C, Form 1040)April 15, 2019
Extension tax deadline for sole proprietors and individuals (Form 4868)October 15, 2019
Nonprofit Tax Deadlines:Due Date:
Original tax deadline for exempt organizations (Form 990)May 15, 2019
Extension tax deadline for exempt organizations (Form 8868)August 15, 2019What Flow-Through Entities (S Corps or Partnerships) Need to Do By Their Tax Dead line If your business is a flow-through entity—S Corporation or partnership (LLC)—your taxes are due on the fifteenth day of the third month of your fiscal year or the fifteenth day of the ninth month if you file an extension. However, those entities 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!
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What Individuals and C Corps Need to Do By Their Tax Dead line As 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, 2019, and pay any tax liability you owe. If you ask for an extension, you will file taxes by October 15, 2019, but you will still need to pay taxes by April 15.

What Exempt Organizations (Nonprofits and Charities) Need to Do By Their Tax Deadline As an exempt organization, such as a nonprofit or charity, you will file taxes on the fifteenth day of the fifth month of your fiscal year or the fifteenth day of the eighth month if you file an extension. For your 2018 return, you will need to file your taxes or an extension by May 15, 2019. If you ask for an extension, you will have until August 15, 2019 to file your return.