Client Resources & FAQ — AMS Accountancy

Question 1

What documents do I need to bring for my tax appointment?

Accepted Answer

For individuals: W-2s, 1099s, Social Security numbers for all dependents, last year's tax return, mortgage interest statements (Form 1098), charitable donation receipts, and any other income or deduction records. For businesses, also bring your profit and loss statement, balance sheet, payroll records, and any asset purchase receipts.

Question 2

When should I start gathering my tax documents?

Accepted Answer

We recommend starting in January as soon as your W-2s and 1099s arrive. Most financial institutions issue these by January 31. The earlier you gather your documents, the more time we have to identify deductions and plan strategically — especially if you owe taxes.

Question 3

Can you file an extension if I'm not ready by April 15?

Accepted Answer

Yes. We can file an automatic 6-month extension (Form 4868 for individuals), moving your filing deadline to October 15. Important: an extension gives you more time to file, not more time to pay. If you owe taxes, payment is still due by April 15 to avoid interest and penalties.

Question 4

How far back can the IRS audit my returns?

Accepted Answer

Generally, the IRS has 3 years from the filing date to audit a return. This extends to 6 years if you underreported income by more than 25%, and there is no statute of limitations for fraudulent returns or if no return was filed. We recommend keeping tax records for at least 7 years.

Question 5

What's the difference between an LLC and an S-Corp for taxes?

Accepted Answer

A single-member LLC is taxed as a sole proprietor by default — all profit is subject to self-employment tax (15.3%). An S-Corp allows you to split income between a salary and distributions, potentially reducing self-employment taxes. The right structure depends on your net profit level, and we can run the numbers to find the most tax-efficient option for your situation.

Question 6

Do I need to make quarterly estimated tax payments?

Accepted Answer

If you expect to owe $1,000 or more in federal taxes after withholding and credits, you're generally required to make quarterly estimated payments. This applies to self-employed individuals, freelancers, and business owners. Missing or underpaying estimated taxes can result in an underpayment penalty.

Question 7

What business expenses can I deduct?

Accepted Answer

Common deductible business expenses include: office rent or home office deduction, business equipment and supplies, vehicle use for business, professional services (legal, accounting), business insurance, employee wages and benefits, advertising and marketing, and business travel. We'll work with you to identify every legitimate deduction you're entitled to.

Question 8

What payroll taxes am I responsible for as an employer?

Accepted Answer

Employers must withhold federal income tax, Social Security (6.2%), and Medicare (1.45%) from employee wages, and match the Social Security and Medicare contributions. You're also responsible for federal unemployment tax (FUTA) and California state payroll taxes (SDI, UI). We handle all of this through our payroll services.

Question 9

What's the deadline for issuing W-2s to employees?

Accepted Answer

W-2s must be furnished to employees by January 31 of the following year. The same deadline applies to 1099-NEC forms for independent contractors. Late or incorrect forms can result in IRS penalties.

Question 10

Do you work with clients remotely?

Accepted Answer

Yes. While we're based in Cerritos, CA, we serve clients throughout California remotely. We use secure document sharing and can conduct consultations by phone or video call. Many of our clients never need to visit our office in person.

Question 11

How do I send you my documents securely?

Accepted Answer

We accept documents via secure file upload, email, or in person at our Cerritos office. We never recommend sending sensitive financial documents via unsecured email. Contact us and we'll provide you with a secure upload link.

Answers, Deadlines & Helpful Guides

Key Tax & Filing Deadlines

W-2 & 1099 Distribution

S-Corp & Partnership Returns

Individual & C-Corp Returns

Q2 Estimated Tax Payment

Q3 Estimated Tax Payment & Extensions

Extended Individual Returns

Q4 Estimated Tax Payment

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