11/22/2023
Have you ever wondered if your tax returns are being prepared properly? Have you ever considered having someone give a second opinion, but don't know where to start? Well, that's where I can help!
FREE INITIAL CONSULTATIONS!
I offer a free review of prior year tax returns for all of my new clients, but I am also extending this to my (even if you aren't a client --- yet!). If I do find issues on your return, I will provide you with a write-up about the issues that you can address with your current preparer or we can discuss if you'd like me to assist with any necessary amended returns. Take a look at the bottom of this post for some examples of recent errors I have found and helped clients with.
If you are interested in having me take a look at your returns (business or individual) to give a second opinion, please reach out and I'll get you on my schedule before the upcoming tax season rolls around. Either PM me, call me at (502) 699-0963 or email me at [email protected] and I'll be happy to help!
Here are some examples of issues I have found with recent new clients when reviewing their prior year returns that has resulted in amended returns...
-- Failure to report passive loss carryovers from rental activity to future returns. In this situation, the previous tax preparer sold or merged with another firm and the new firm failed to properly bring over the carryforward losses which resulted in taxable rental income the following 2 years that would have been offset fully by those carryforward losses and there is still an amount remaining to carryforward to future years. These types of mistakes are common in situations of a new tax preparer or firm merge because sometimes the transition is a manual process and these things will get missed on the new client setup.
-- Failure to properly report residential rental real estate as depreciable property over 27.5 years. In one situation, the tax preparer reported it as 39 year property (which is correct for commercial/non-residential, but not residential). And in another situation with a different client, the tax preparer failed to report depreciation at all. This shouldn't be a common mistake, but you would be surprised how often I see this... unfortunately.
-- Failure to properly report cost basis on employee stock options and purchase plans. This resulted in the taxpayer paying tax on overstated capital gains income because the amount already reported on their W-2 as income at the time exercised was not taken into consideration. This is a common mistake, especially when the stock is not sold in the same year the options were exercised.
--- Failure to carryforward a tax overpayment on a local occupational license return resulting in interest and penalty paid on a balance due thay would have 100% been overset by the overpayment had it been carriee forward. Unfortunately, many of the local occupational license office will not bring this to your attention (unlike the IRS or KY who will).
-- Failure to report active military pay as exempt from KY income tax.
The list could go on and on, but these are some of the biggest ones over the past MONTH that I have dealt with and helped clients with. Don't hesitate to reach out if you have any concern about your prior year returns or have any similar issues to these that you want to confirm were handled properly.
