Lewes CPA office
(302) 645-6216
Lewes CPA fax
(302) 645-9808
Lewes Payroll office
(302) 645-5700
Lewes Payroll fax
(302) 645-0395
Milford CPA office
(302) 422-2301
Milford  CPA fax
(302) 424-4449

Progar & Company, P.A. CPAs

Frequently Asked Questions

Here you will find several frequently asked questions about both Progar & Company, P.A. and IRS and the world of taxation.

A quick index:

Progar & Co.

 

IRS & Taxation

 

Concerning Progar and Company:

Q:  I don't know how to use QuickBooks, can you teach me?

A:

Yes we can. We have highly skilled professionals trained in both using and teaching QuickBooks.  Our services include, but are not limited to, setting up, fixing problems, or improving your current QuickBooks situation.  We will even travel to your home or business to do so!



Q:  What types of returns do you prepare?
A: 

We prepare and file tax returns of all shapes and sizes. From the smallest 1040 to large corporate returns.  To get feedback on your specific return please call or email to set up an appointment.


Q:  Aside from tax returns, what other services do you provide?
A:

We are able to provide a full range of accounting services.  From basic book keeping to payroll to tax projections; we are able to do it all.



Q:  If I get audited, will you provide support?
A: 

Yes we will.  Our staff is experienced in dealing with the IRS and will be able to provide full support until the situation is resolved. 


IRS & Taxation questions:

Q:  What should I do if I made a mistake on my federal return that I have already filed?
A:

 It depends on the type of mistake that you made:

  • Many mathematical errors are caught in the processing of the tax return itself.
  • If you did not attach a required schedule the service will contact you and ask for the missing information.
  • If you did not report all your income or did not claim a credit, you are entitled to file an amended or corrected return using Form 1040X (PDF), Amended U.S. Individual Income Tax Return.

When filing an amended or corrected return:

  • Include copies of any schedules that have been changed or any Form W-2 (PDF) you did not include.
  • The Form 1040X (PDF) should be submitted after you receive your refund or by the due date of the return, whichever, is earlier.
  • Generally, to claim a refund, the Form 1040X (PDF) must be received within three years after the date you filed your original return or within two years after the date you paid the tax, whichever is later.

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Q:  Is there an age limit on claiming my children as dependents?

A:

Age is a factor in the qualifying child test, but a qualifying relative can be any age.

As long as the following dependency exemption tests are met, you may claim him or her:

  1. Qualifying child or qualifying relative test
  2. Dependent taxpayer test
  3. Citizenship or resident test
  4. Joint return test

Q:  How do I know if I have to file quarterly individual estimated tax payments?

A:

If you owed additional tax for the prior tax year, you may have to make estimated tax payments for the current tax year.

You must make estimated tax payments for the current tax year if both of the following apply:

  • You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
  • You expect your withholding and credits to be less than the smaller of:
    • 90% of the tax to be shown on your current year’s tax return, or
    • 100% of the tax shown on your prior year’s tax return.  (Your prior year tax return must cover all 12 months.)

There are special rules for:

  • Certain taxpayers with higher adjusted gross income
  • Farmers and commercial fishermen
  • Aliens
  • Estates and Trusts

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Q:  Can a person receive a tax refund if they are currently in a payment plan for prior year's federal taxes?
A:

As a condition of your agreement, any refund due you in a future year will be applied against the amount you owe.

  • Continue making your installment agreement payments as scheduled because your refund is not considered as a substitute for your regular payment due.
  • You may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support.
  • IRS will automatically apply the refund to the taxes owed.

 

Q:  What kind of interest and penalties will I be charged for filing and paying my taxes late?

A:

Interest is compounded daily and charged on any unpaid tax from the due date of the return until the date of payment.

  • The interest rate is the federal short-term rate plus 3 percent. That rate is determined every three months.
  • For current interest rates, go to News Releases and Fact Sheets and find the most recent Internal Revenue release entitled Quarterly Interest Rates.

In addition, if you filed on time but didn't pay on time, you'll generally have to pay a late payment penalty.

  • The late payment penalty is one-half of one percent of the tax (0.5%) owed for each month, or part of a month, that the tax remains unpaid after the due date, not exceeding 25 percent.
  • You will not have to pay the penalty if you can show reasonable cause for the failure.
  • The one-half of one percent rate increases to one percent if the tax remains unpaid after several bills have been sent to you and the IRS issues a notice of intent to levy.
  • Currently, if you filed a timely return and are paying your tax via an installment agreement, the penalty is one-quarter of one percent for each month, or part of a month, that the installment agreement is in effect.

If you did not file on time and owe tax, you may owe an additional penalty for failure to file unless you can show reasonable cause.

  • The combined penalty is 5 percent (4.5% late filing, 0.5% late payment) for each month, or part of a month, that your return was late, up to 25%.
  • The late filing penalty applies to the net amount due, which is the tax shown on your return and any additional tax found to be due, as reduced by any credits for withholding and estimated tax and any timely payments made with the return.
  • After five months, if you still have not paid, the 0.5% failure-to-pay penalty continues to run, up to 25%, until the tax is paid.
  • The total penalty for failure to file and pay can be 47.5% (22.5% late filing, 25% late payment) of the tax owed.
  • If your return was over 60 days late, the minimum failure-to-file penalty is the smaller of $100 ($135 for returns required to be filled after December 31, 2008) or 100% of the tax required to be shown on the return.

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Q:   I lost my refund check. How do I get a new one?
A:

If you have lost your refund check there are several options available to initiate a refund trace on your behalf.

  • You can go to the “ Where’s my Refund” system available through www.irs.gov and request assistance.
  • You can call IRS at 800-829-1954 and either use the automated system or speak with an agent.
  • If you filed a Married Filing Joint return you cannot initiate a trace using automation, but the applications will issue you a Form 3911 (PDF), Taxpayer Statement Regarding Refund, to get the process started.


Q:  What is the American Recovery and Reinvestment Act (ARRA) of 2009?
A:

The American Recovery and Reinvestment Act (ARRA) of 2009 was signed into law by President Obama on February 17, 2009. The bill is intended to provide a stimulus to the U.S. economy in the wake of the economic downturn. The bill includes federal tax cuts, expansion of unemployment benefits and other social provisions, including domestic spending in education, health care, and infrastructure, including the energy sector.

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