Q1. I have not received first Stimulus payment, but I have received the second one. How can I get the first stimulus payment?
A1. If you never received your first stimulus payment, but believe you are eligible, you can still get your first stimulus payment by claiming the Recovery Rebate Credit on your 2020 1040 or 1040-SR tax forms.
Q2. Can I contribute to traditional IRA for 2020? If so, what is the deadline?
A2. Almost anyone can contribute to a traditional IRA, provided you (or your spouse) receive taxable income and you are under age 70 ½. But your contributions are tax deductible only if you meet certain qualifications.
Typically, taxpayers have until the April 15 tax filing deadline to make an IRA contribution for the prior tax year.
Q3.I did not file tax returns for last three years, what should I do?
A3. You should file the tax returns as soon as possible to be incompliance with IRS rules, also you can not claim the tax refund after 3 years. if you are expecting the refund and if you owe taxes, you will need to file your return as soon as possible as well as owe back taxes and penalties.
Q4.What do I do if I can’t pay the taxes that I owe?
A4.First of all, stay calm. If you can’t pay the full amount due, you should still file your return and pay what you can by your deadline to avoid interest and penalties. Then we can contact the IRS to discuss payment options. In some cases, the IRS can offer a short-term extension to pay, an payment installation agreement, or waive your penalties.
Q5. I have not elected the S e election when I form an entity. Can I still do it?
A5.A corporation or LLC must file an S-Corp election within two months and 15 days (~75 days total) of the date of formation for the election to take effect in the first tax year, however it has not been filed during stipulated time, it can be filed later if the corporation can show that the failure to file on time was due to reasonable cause.
Q6.Do I need to clean up my books before I hand them over to you?
Q7. We do need a certain amount of information to get started, such as bank and credit card statements and your QuickBooks file, if there is one. After we see what we have and what is missing, we will send you a specific list of requested items and suggestions as to how to obtain them.
Q8.Is Shikha Varshney CPA PC is a better solution than hiring an individual bookkeeper or accountant?
A8.Our firm is one stop shop for all your accounting and tax needs. Clients often report that our services are less costly than hiring a full-time bookkeeper or accountant. In addition, our team members are always available and possess a broad range of knowledge and expertise to handle any complex accounting issues that may arise.
Q9.I made a mistake on my tax return. What should I do?
A9.Your required action will depend on the type of mistake you made.
- If you forgot to include a certain piece of information, it’s likely that the IRS will contact you to request the specific piece of information.
- If you forgot to report some of your income or if you forgot to claim a credit or deduction, you will need to file an amended tax return using a 1040X Form. We can help you with that.