Frequently Asked Questions
1. Do I need to issue 1099s for my business?
Yes, if you want to keep your deductions you must issue 1099s to vendors and suppliers in accordance with IRS rules. Enforcement has been a higher priority to IRS since tax year 2011 in this area.
2. Can you prepare my state tax return if I live outside California?
Yes, we service the entire United States and are quite familiar with all state and local income tax filing requirements and forms.
3. Can you advise me regarding my volunteer horse activities?
Yes, this is something that we deal with regularly.
4. What types of expenses can I deduct with my horse business?
IRS allows all expenses that are ordinary and necessary for running your business. When we prepare your taxes, you may discuss specific concerns and/or questions you have. We also evaluate your expenses to analyze whether they make sense for your business. If not, we discuss our concerns with you prior to finishing your tax return.
5. I'm just starting in business and I don't know where to start - can you help me through all the requirements?
Yes, we take the time to discuss record keeping requirements, reporting requirements, and expectations of the various taxing agencies.
6. I am a U.S. resident but I race internationally - can you still prepare my tax return?
Yes, we are familiar and experienced with reporting international income.
7. I have a partnership for my race activities - do you know how to report this?
Yes, whether you race in a formal partnership, general partnership or an informal partnership, we are familiar and experienced in preparation.
8. I own partial shares of horses that race - do you know how to report this?
Yes, we are experienced in identifying which partner had the income reported and how to allocate fractional shares.
9. If the race income is reported to me, how can I tell the IRS that some of the income belongs to my partner(s)?
Income reporting follows the flow of the money and IRS has an expectation to find income where it was reported. There are multiple ways to formally tell IRS that the income was paid to your partner(s) and we can help you pick the most appropriate way for you to complete this requirement.
10. I race in many states but I'm not sure I have all the records of my income and expenses - what do I do?
We can advise you on the logical steps to take or you can have us track down the data.
11. I received a notice from the IRS or state - what do I do?
We can advise a plan of action once we see the particular notice. Often, we can help you to efficiently take care of the issue yourself. In more complex situations, we can provide representation for all U.S. jurisdictions.
12. I prepare my own taxes but I received an audit notice - can you help me?
Yes, we typically represent people in audit that had their return prepared outside our office. We can assess your particular situation after an initial complimentary one hour consultation, during which, we will outline the strengths and weaknesses of your case. Retainer fees are required for all representation cases and are dependent on the issues, complexity, and state of documentation.
13. My tax preparer doesn't understand my horse business - will you take the time to understand the specifics of my type of business?
Yes – particularly with horses, we recognize the unique rules and regulations, understand “equine” language, and can translate it to terms that the IRS can understand.
14. Are you expensive?
Our clients find we give exceptional service that are priced appropriately. Referrals will be provided at your request for you to confirm our value.