John J Wallace

Attorney & Counselor at Law, PC

Taxes

We provide a full range of tax preparation services for:

  • Businesses 
  • Tax-Exempt Organizations 
  • Individuals 
  • Trusts 
  • Estates 

Frequently Asked Questions:

Q: Do you prepare payroll tax returns?
A: Typically no. We can provide you with the names of payroll tax services that provide these services very efficiently and cost effectively.

Q: I heard I don’t have to pay any taxes if I form a trust, is this true? 
A: Yes, I have been asked this more than once. Such promises are scams by people trying to sell trust documents. Don’t waste your money on such things. 

Q: I owe a lot of back taxes. I saw an ad where I can pay pennies on the dollar. How do I do that?
A: There are 2 things to consider:
   1) Such ads are run on TV by companies called tax mills. They charge high fees, while making big promises,
       whether or not you will qualify to pay less than the tax you owe.
   2) An offer in compromise can reduce the taxes you owe but the IRS wants the total of 2 things:
       Your assets net of liabilities plus your disposable income over the next 5 years. Remember, you have to
       include the equity in your home and your retirement plans. Call us to discuss your situation, sometimes
       at least the penalties can be abated if you show reasonable cause. 

Q: How long should I keep my tax and financial records?
A: There are 2 types of financial records to consider:
    1) For tax records I recommend keeping them 6 years after the later of: when you file your tax returns
        or the due date of your tax returns including extensions. For example: For a 2009 tax return
        extended to and filed on October 15, 2010, you can dispose of the records October 15, 2016. 

    2) If you still own an asset or owe a liability: Your home with a mortgage is an example of both.
        You should keep the paperwork on assets you still own or liabilities you owe until you dispose 
        of the assets or pay off the loans.