Frequently asked questions (FAQs)
Where to Register?
You can Register on our website, please refer our Home banner and register yourself.
What is your Tax Process?
Our Tax process is so simple; we have 5 steps of tax process Register Send Tax notes and Documents Tax Preparation Get Tax summary and Confirm E-File/Paper File
Tax Processing Time?
We provide fast Processing of your taxes – committed 24 hour timeline
Why I should engage a paid tax-preparer?
Most of the times, your tax return is a simple self-explanatory document and you as the Taxpayer have all the resources whether IRS or any Third Party Sources to self-prepare your tax returns.
However, if you opine your tax return needs some planning or involves multiple state laws, or alien treatment, then we advise that you should engage a paid preparer who can be a better guide for you to correctly understand the cumbersome tax procedure involved and prepare a correct return to the best of his/her knowledge. Further, the paid preparer who is generally qualified to take up representation assignments will be able to more fairly present your case before IRS.
When should I consider filing 1040NR?
Generally, if you stayed in US for less than 31 days during the Tax Year under consideration or failed to pass through Substantial Presence or Green Card Tests but earned some income while you were present in the United States, then you should file a 1040NR.
Substantial Physical Presence Test:
a) 31 days during the current year, and
b) 183 days during the 3-year period that includes the current year and the 2 years
immediately before that, counting:
I. All the days you were present in the current year, and
II. 1/3 of the days you were present in the first year before the current year, and
III. 1/6 of the days you were present in the second year before the current year.
You may also choose to file a Non-Resident Return if you passed through Resident Status Validations, but opined to have closer connection to a foreign country (like India) for stating your country of residence, driver’s license, employment, bank accounts, personal belongings, home mortgage, etc.
I have stayed for less than 183 days during the Tax Year but you are filing my return as Resident Alien – Why should considering filing Form 1040 instead of1040NR penalize me?
It is not penalizing for you to file 1040 when you are eligible to exercise this option. Filing 1040 helps you to itemize expenses, and declare through Form W9 for non- withholding of taxes.
I am returning back home and probably will never return back – Can’t I simply file return as 1040NR and not 1040 regular?
It may be a good idea to choose a Dual Status Return or 1040NR in the year of return, if you are determined to move back to India as your tax home shifts back to India.
From where I should download required Forms?
You could visit IRS website www.irs.gov
How long should I have to retain my tax filing records?
Unless a tax return is fraudulently prepared, it is normal practice for IRS to seek any additional information on a tax return within 3 years. Sometimes, IRS may comeback seeking examination, investigation or check upon a file anytime within 7 years from the filing deadlines.
Nevertheless, it is always advisable to permanently keep record of your tax documents. My name is too long and it looks it is truncated? Will IRS accept my return? Normally, the first Four Letters of your FIRST NAME and first Four Letters of your LAST NAME are important for IRS to retrieve and identify your record. IRS will be able to accept your name if these letters in your name and your SSN/ITIN match with its records.
Why, when and How? What do I do in case the details on the W2/ FTC are not correct?
You should obtain corrected W-2 / FTC from your employer. Your employer will issue W-2 C comparing the changes to your original W2 issued.
What if I do not have some of these documents? Will IRS penalize, if I do not have some attachments to enclose?
No, you may send photocopies of the documents or put an appeal that you lost the documents.
However, IRS will send a notice asking you to submit any required documents if the amounts reported on your tax return differ with those on IRS records. There will be a penalty if you are unable to provide the suggested documents Filing Dates?
Due date for filing the US individual income tax returns is April 15th. However, if the due date falls on a Govt. holiday then it will extend to the next business day. For 2016 tax filing the due date is April 15 th 2017.
Can I file a return later?
You have to apply for an extension before the due date and pay the balance due if you are expecting to owe any. By filing extension you will be given an automatic extension up to 6 months to file your tax returns.
But do remember, you should pay any unpaid balance on account before due date so as not to attract any interest and/or penalty on the amounts you fail to pay in time (i.e. before the due date) I see my colleagues filing tax returns before April 15th. Why you think I should not file before this date? Or why you think I should file a return only on an extension? If you have all the documents required for filing your tax returns before the due date, it is always advisable to file the return in time. But in cases like if you should apply for Taxpayer Identification Numbers for your Spouse and/or Kids or if your W2 needs a correction but you definitely know that you are likely to get a tax refund, you may safely file an extension.
Can I choose to file a return later even if I owe some taxes?
Yes, you can file your tax return by filing an extension that is valid up to 6 months to file a return, but you have to pay the balance due on or before the due date, if you do not want to have additional interest or penalty burden on the taxes that you owe.
Can I file my returns electronically?
You can file your return electronically but there are some exceptions.
1. If you don’t have SSN or ITIN (Individual Taxpayer Identification number) for any of your dependants and have to apply for one.
3. If you are filing the return after October 15th (that is the last date for filing the returns electronically with extension)
Will paid preparer represent my tax return if there is any query or audit upon the tax return?
Yes, if you have consented in your tax return for a third party to discuss your tax matters with IRS and/or by Power of Attorney, a paid preparer will be able to represent your case before the IRS for the Tax Year in relevance and upon the tax matter for which the preparer or the Third Party is endorsed to talk to IRS. What if I made a mistake in preparing tax returns or if my paid preparer made a mistake? Either means, you can correct the Tax Return originally filed by filing an U.S. Amended Tax Return (Form 1040X).
If however such an amendment is on account of a mistake by a Paid Preparer who prepared your tax return, and if such error resulted in payment of taxes, interest and penalty to the IRS, then you may hold the paid preparer responsible to bear the interest and penalty levied by IRS. Tax Portion, however, is always the responsibility of the Taxpayer.