General Tax Filing Questions
- Q: When should I start preparing my tax documents?
A: Ideally, start gathering your income statements, expense records, and supporting documents as early as January. Early preparation helps prevent last-minute stress and ensures you don’t miss out on valuable deductions.
- Q: What is the deadline to file my tax return?
A: For most taxpayers, the deadline is April 15. If that date falls on a weekend or holiday, the deadline moves to the next business day. Business entities such as S corporations (Form 1120-S) and partnerships (Form 1065) are typically due March 15.
- Q: Can I file an extension if I’m not ready?
A: Yes. Individuals can file Form 4868 for a 6-month extension, and business entities can file Form 7004. Keep in mind: an extension gives you more time to file, not to pay. Any balance due must still be paid by the original deadline to avoid penalties and interest.
Tax Deduction Questions
- Q: What expenses are tax-deductible for small businesses?
A: Common deductions include: office rent and utilities, business insurance premiums, advertising and marketing expenses, vehicle mileage or actual expenses, payroll and subcontractor payments, professional fees, and depreciation on business assets.
- Q: Can I deduct home office expenses?
A: Yes, if you use a portion of your home exclusively and regularly for business. The deduction can be calculated using the simplified method ($5 per square foot up to 300 sq ft) or actual expenses based on the business-use percentage.
- Q: Are meals and travel expenses deductible?
A: Business meals are generally 50% deductible, provided they’re directly related to your business. Travel expenses (lodging, airfare, rental car) are deductible if the trip is primarily for business purposes and properly documented.
- Q: What deductions are available for individuals?
A: Individuals may qualify for deductions such as mortgage interest and property taxes, charitable contributions, student loan interest, retirement plan contributions, HSA contributions, and medical expenses exceeding 7.5% of AGI.
Compliance and Recordkeeping
- Q: How long should I keep my tax records?
A: Keep tax returns and supporting documents for at least 3 years (the IRS audit window), or 7 years if you have loss carryforwards or claim bad debt deductions. Business owners should retain payroll records and corporate filings indefinitely.
- Q: What happens if I receive a notice from the IRS or state agency?
A: Don’t panic — and don’t ignore it. Forward the notice to us immediately. 10 Key Solutions will help review the letter, verify its accuracy, and respond appropriately on your behalf.
- Q: How do I stay compliant throughout the year?
A: Keep detailed records, make estimated tax payments if required, and update your bookkeeping monthly. Regular financial reviews help ensure compliance and prevent surprises at tax time.
S Corporation & Business-Specific Questions
- Q: How should I pay myself as an S corporation owner?
A: Owners must receive a reasonable salary subject to payroll taxes, plus may take additional distributions that aren’t subject to self-employment tax. 10 Key Solutions can help determine an appropriate and compliant salary.
- Q: What is the difference between business expenses and owner draws?
A: Business expenses reduce taxable income. Owner draws (or shareholder distributions) do not — they represent a withdrawal of profit. Mixing the two can create compliance issues, so we recommend maintaining separate business accounts.
- Q: Can I deduct startup expenses for a new business?
A: Yes, you can deduct up to $5,000 in startup costs and $5,000 in organizational costs in your first year of business, with the remainder amortized over 15 years.
Filing and Payment Procedures
- Q: What’s the fastest way to receive my refund?
A: Filing electronically with direct deposit is the quickest option. Paper returns or mailed checks can take significantly longer.
- Q: Can I pay my taxes online?
A: Yes. The IRS offers secure online payment options at irs.gov/payments. You can also make estimated payments, schedule future payments, or use the EFTPS system for business taxes.
- Q: What if I can’t afford to pay my full balance?
A: The IRS offers payment plans and installment agreements. We can help you apply and ensure the payment structure minimizes penalties while keeping you compliant.
Work With 10 Key Solutions
- Q: How can 10 Key Solutions help me year-round?
A: We go beyond tax preparation — providing proactive planning, bookkeeping, payroll, and compliance reviews to help you build a stronger financial foundation. Our goal is to help you stay organized, compliant, and confident in your numbers.
- Q: How can I schedule a consultation?
A: You can book directly on our website or contact our Atlanta office at [your phone/email here]. We’re here to make taxes simple, transparent, and stress-free.
