A: Electronic records with hard copy back up for the audit period, or a test period. Depending on the taxes being reviewed the requirements may vary. Here is a list of commonly requested records by tax type:
Corporate Income Tax
Corporate Federal and Vermont tax returns and related supporting work papers. Copies of the depreciation schedules for the audit period along with supporting work papers and financial statements, trial balances, profit and loss etc.
Sales and Use Tax
Copies of filed returns for audit or test period along with supporting work papers. Any and all exemption certificates for non-taxed sales. Purchase and sales invoices.
Payroll records, W-2s, W-4s, 941s and VT withholding returns for the audit period.
Chart of accounts, general ledger in electronic media format, cash receipts and disbursements, supporting detail for all Vermont returns filed.
A: That varies based on the size of your business and how your records are kept. The time can also vary based on any issues that are discovered once we have initially reviewed your records. Initially you can expect an auditor onsite for three days to two weeks with a couple of months of follow up.
A: For some Individual Income Tax discrepancies sometimes the original documents you received or filed will help us resolve the issue.
Electronic records with hard copy back up for the audit period, or a test period. Depending on the taxes being reviewed the requirements may vary. If you encounter difficulties with the records being requested, we will work with you in identifying what other records would suffice.
A: If the IRS audited you and you responded to them with information to clarify it with them, we do not get that follow up information. The IRS reports to us that they questioned a filing but not how it was ultimately resolved. A copy of the IRS determination will usually resolve the matter.
A: That varies based on the size of your business and how your records are kept. The time can also vary based on any issues that are discovered once we have initially reviewed your records. In most cases we can resolve the issue within the 60 day of receiving the requested information.
Household Income for School Property Adjustment Payments (Prebate)
A: One item is Tax exempt interest (Box 8b) on your Federal 1040 and 1040A and the Nontaxable portion of Social security benefits received, the difference between boxes 20a and 20b from your Federal 1040 (1040A difference between boxes 14a and 14b). Some other items are Support money received from others, child support received and cash gifts.
A: Yes there are quite a few, you may deduct Social security and Medicare taxes on Wages included in Household income. Also, there is a deduction for Self employment taxes paid. You may also deduct Child support paid (proof of payment is necessary).
The following deductions originate from your Federal 1040 lines 23 through 35 or 1040a and are the only deductions available, Business expenses for reservists, Alimony paid, Tuition and fees paid, Self employment health deduction and Health savings deduction.
A: Yes you would include their income for the time they spent in the Household, if they lived with you the whole year you would include all their income, if it was one quarter of the year you would take 25% and add that to Household income.
A: This is a great question. For Household income purposes you take a look at each business and include only those that show a net profit for Household income purpose. You do not get a deduction for those businesses that show a loss.