Frequently asked questions
Find answers to common questions about individual tax filing, business tax filing, bookkeeping, IRS letters and notices, Texas sales and use tax, and other accounting and tax services in Houston.
Do I need to file a tax return if I only have a W-2?
Not always. Whether you need to file depends on your total income, filing status, and whether you meet the IRS filing requirements. However, even if you are not required to file, you may still want to file a return if taxes were withheld from your paycheck and you may be eligible for a refund.
What documents do I need for business tax filing?
The documents needed for business tax filing usually include your income records, expense receipts, bank and credit card statements, payroll records, prior-year tax returns, and any tax forms such as 1099s or W-2s. You may also need records for equipment purchases, loan interest, rent, utilities, and estimated tax payments. Keeping accurate and organized records helps ensure your tax return is complete and supports the deductions claimed.
What is the difference between LLC and S Corporation?
An LLC and an S Corporation are not the same thing. An LLC is a legal business structure created under state law, while an S Corporation is a federal tax election that changes how a qualifying business is taxed. A single-member LLC is generally taxed as part of the owner’s personal tax return by default, and a multi-member LLC is generally taxed as a partnership unless it elects otherwise. An LLC may choose to be taxed as an S Corporation if it meets the IRS requirements. In some cases, S Corporation taxation may help reduce self-employment tax, but it also comes with additional rules, payroll requirements, and compliance responsibilities.
How often do I need to file Texas sales tax?
Texas sales tax filing frequency depends on how the Texas Comptroller assigns your account. Most businesses are required to file monthly, quarterly, or yearly, and the Comptroller will usually notify you after your sales tax permit is approved. Monthly returns are generally due on the 20th day of the following month, quarterly returns are generally due on April 20, July 20, October 20, and January 20, and yearly returns are generally due on January 20 for the prior year.
Can you help with IRS letters and notices?
Yes. We can help review IRS letters and notices, explain what they mean, and help you determine the appropriate next steps. In many cases, IRS notices require a timely response, especially if the IRS is requesting additional information, proposing changes, or showing a balance due. Reviewing the notice early can help reduce added penalties, interest, or missed deadlines. The IRS advises taxpayers to read the notice carefully, keep it for their records, and respond by the due date if a response is required.
What documents do I need for individual tax preparation?
The documents needed depend on your situation, but common items include W-2 forms, 1099 forms, mortgage interest statements, education tax forms, and other income or deduction records. We can help clients identify what is needed before filing.
What bookkeeping services do you offer for small businesses?
We provide bookkeeping services for small businesses that need help staying organized throughout the year. Our services may include monthly bookkeeping, account reconciliation, financial reporting, catch-up bookkeeping, and cleanup of prior records. Good bookkeeping helps support more accurate tax filing and better business decisions.
What is the deadline for filing an individual tax return?
The filing deadline for an individual tax return is generally in April, although the exact date may vary slightly depending on the year and calendar. If you need more time, you may request an extension, but an extension to file is not an extension to pay. Any tax due generally should still be paid by the original deadline to reduce penalties and interest.
Do I need to make estimated tax payments?
Estimated tax payments may be required if you expect to owe tax and do not have enough withholding through wages or other sources. This often applies to self-employed individuals, independent contractors, investors, and small business owners. Making estimated payments on time may help reduce underpayment penalties.
Do I need to report foreign bank accounts or overseas assets?
Possibly. Some U.S. taxpayers may need to report foreign bank accounts, financial assets, or foreign income, even if the money is located outside the United States. Reporting requirements depend on filing status, account balances, asset types, and other factors. These rules are separate from the regular income tax return in some cases and should be reviewed carefully.