FAQs Archive - Blau Company Accounting & Tax Preparation

Individual Income Tax Engagement Letter (effective 1/1/2023)

Red Rock Accounting Group, LLC .is pleased to you with the professional services described below. This letter, and the attached Terms and Conditions Addendum and any other attachments incorporated herein (collectively, “Agreement”), confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services we will provide. The engagement between you and our firm will be governed by the terms of this Agreement. ENGAGEMENT OBJECTIVE AND SCOPE We will prepare the federal and state tax returns for the year ended December 31, 2022: We will not prepare any tax returns except those identified [...]

Aaron Blau, EA, CPA2023-01-26T20:01:13-07:00January 6th, 2021|Comments Off

Coronavirus (COVID-19) Protection Protocols

We value our clients and our staff and in keeping with our Core Values we have put in place the following Covid-19 Protection Protocol. We are asking that all clients requesting in-office visits affirm that they will comply with this procedure. All clients and staff will wear a mask which completely covers the individual ‘s nose and mouth at all times while in our office. Clients agree to have their temperature checked upon entry to our office before meeting with members of our bookkeeping or tax preparation staff. Clients and staff will maintain social distancing for the safe interaction of [...]

Aaron Blau, EA, CPA2021-01-06T16:44:52-07:00January 6th, 2021|Office Policies and Procedures|Comments Off

Why do I have to pay estimated tax payments?

Individuals must pay 25% of a “required annual payment” by Apr. 15, June 15, Sept. 15, and Jan. 15, to avoid an underpayment penalty. (When that date falls on a weekend or holiday, the payment is due on the next business day.) The required annual payment for most individuals is the lower of 90% of the tax shown on the current year's return or 100% of the tax shown on the return for the previous year. Certain high-income individuals must meet a more rigorous requirement. If the adjusted gross income on your previous year's return is over $150,000 (over $75,000 [...]

Aaron Blau, EA, CPA2017-08-22T10:26:39-07:00August 22nd, 2017|Common Individual Income Tax Questions|Comments Off

What is the schedule of Arizona’s Minimum Wage Increase?

$10.00/Hour $10.50/Hour $11.00/Hour $12.00/Hour $12.15/Hour $12.80/Hour In 2016, Arizona voters passed Proposition 206, increasing the state-wide minimum wage and mandating paid sick time for all employees. Employers who pay tipped employees are allowed to pay up to $3 less than minimum wage. The initiative also guaranteed 40 hours of annual paid sick time to employees of businesses with 15 or more employees and 24 hours to those of businesses with less than 15 employees. The measure entitled employees to accrue one hour of paid sick time for every 30 hours worked. The [...]

Aaron Blau, EA, CPA2022-01-04T15:15:01-07:00January 17th, 2017|Common Business Questions|Comments Off

I received a “Determination of Unemployment Tax Rate.” What is this?

All Arizona employers are required to pay unemployment taxes to the state of Arizona. The tax rate applied on the Determination of Unemployment Tax Rate is applied to the first $7,000 of wages. The Department of Economic Security (DES) calculates this rate based on a "reserve ratio." This reserve ratio is calculated by comparing wages paid during a base period (the prior 3 years ending June 30), with benefits paid out to employees. The higher the claims, the higher the rate. Employers may be able to reduce the rate by pre-paying amounts into their accounts. This is generally beneficial [...]

Aaron Blau, EA, CPA2017-06-07T06:41:49-07:00January 11th, 2017|Common Business Questions|0 Comments

What will my fees be?

Our fees are based upon the complexity of the work to be performed and our professional time, as well as out-of-pocket expenses. In addition, the fee depends upon the timely delivery, availability, quality, and completeness of the information you provide to us. You agree that you will deliver all records requested and respond to all inquiries made by our staff to complete this engagement on a timely basis. You agree to pay all fees and expenses incurred, whether or not we prepare the income tax returns. Amounts unpaid within 30 days of invoice will be subject to a late payment [...]

Aaron Blau, EA, CPA2017-06-07T06:50:59-07:00December 30th, 2016|Office Policies and Procedures|Comments Off

The government charged me interest and penalties. Who is responsible to pay this?

Federal, state, and local tax authorities impose various penalties and interest charges for non-compliance with tax laws and regulations, including failure to file or late filing of returns, and underpayment of taxes. You, as the taxpayer, remain responsible for the payment of all tax, penalties, and interest charges imposed by tax authorities. We rely on the accuracy and completeness of the information you provide to us in connection with the preparation of your tax returns. Failure to disclose or inadequate disclosure of income or tax positions may result in the imposition of penalties and interest charges.

Aaron Blau, EA, CPA2017-02-16T17:07:54-07:00December 30th, 2016|Common Individual Income Tax Questions, Office Policies and Procedures|Comments Off

What if I need to file an extension?

The original filing due date for your tax returns is April 15, 2017 for federal and state. Due to the high volume of tax returns prepared by our firm, the information needed to complete the tax returns must be received no later than April 9, 2017 so that the returns can be completed by the original filing due date. It may become necessary to apply for an extension of the filing deadline if there are unresolved tax issues or delays in processing, or if we do not receive all of the necessary information from you in a timely basis. [...]

Aaron Blau, EA, CPA2017-02-16T17:11:05-07:00December 30th, 2016|Common Individual Income Tax Questions, Office Policies and Procedures|Comments Off

What are the client’s responsibilities concerning tax preparation?

We will provide you with an income tax organizer to help you compile and document the information we will need to prepare your income tax returns. You must complete the income tax organizer with accurate and complete information. Income from all sources, including those outside the U.S., is required. We rely upon the accuracy and completeness of both the information you provide in the income tax organizer and other supporting data you provide in rendering professional services to you. Documentation You are responsible for maintaining adequate documentation to substantiate the accuracy and completeness of your tax returns. You should [...]

Aaron Blau, EA, CPA2017-06-07T06:58:51-07:00December 30th, 2016|Office Policies and Procedures|Comments Off

What are a CPA firm’s responsibilities in regards to tax preparation?

Unless otherwise noted, we will perform our services in accordance with the Statements on Standards for Tax Services (“SSTS”) issued by the American Institute of Certified Public Accountants (“AICPA”) and U.S. Treasury Department Circular 230 (“Circular 230”). We will prepare your tax returns based upon your filing status (single, married filing jointly, married filing separately, head of household or qualifying widow[er] with dependent child) as reflected in your income tax returns for last year. If your filing status has changed, you wish to change your filing status, or you have questions about your filing status, please contact us immediately. [...]

Aaron Blau, EA, CPA2016-12-30T16:38:33-07:00December 30th, 2016|Office Policies and Procedures|Comments Off