FAQs

What is bookkeeping, and why is it important?

Bookkeeping involves recording, organizing, and managing financial transactions for a business. It’s crucial because it ensures accurate financial records, helps with tax preparation, and provides insights into your business’s financial status.

What services does Alpha Accounting and Tax Solutions, LLP. provide?

We provide a comprehensive range of services, including:

1. Bookkeeping Services: Recording transactions, reconciliations, accounts payable/receivable management, payroll, and financial reporting.
2. Tax Services: Tax preparation for individuals and businesses, tax planning, tax filings, and ensuring compliance with tax laws.
3. Consulting: Financial strategy and tax-saving tips tailored to your business needs.

How do you ensure my financial data stays secure?

We use secure software with encryption to protect your data. Access is restricted to authorized personnel only, and we follow strict confidentiality protocols.

Can you work with my current accounting software?

Yes, we work with popular software like QuickBooks, Xero, and FreshBooks. If you’re using another system, we can adapt it to meet your needs.

How often do you update my books?

We can update your books weekly, bi-weekly, or monthly based on your business requirements.

Do you handle tax preparation as part of your bookkeeping services?

Yes, we handle both bookkeeping and tax preparation. Our team ensures your books are ready for tax season, making tax filing seamless and accurate.

What are the benefits of outsourcing bookkeeping and tax services?

Outsourcing saves time, reduces errors, ensures compliance, and provides you with peace of mind knowing that your finances are being handled by experts. It also allows you to focus on growing your business.

What is accounting, and how does it differ from bookkeeping?

Accounting involves analyzing, summarizing, and interpreting financial data to provide insights into a business’s performance. Bookkeeping is the recording of daily transactions, while accounting uses that data to create financial reports, plan taxes, and assist with decision-making.

What accounting services does Alpha Accounting and Tax Solutions, LLP. offer?

Our accounting services include:

1. Preparing Financial Statements: Income statements, balance sheets, and cash flow statements.
2. Tax Planning and Compliance
3. Budgeting and Forecasting.
4. Audit Preparation and Support
5. Business Performance Analysis
6. General Ledger Maintenance
7. Payroll Accounting

Can you help with setting up accounting systems for new businesses?

Yes, we help new businesses set up accounting systems, choose the right software, and establish processes for efficient financial management.

How do you handle compliance with tax and accounting regulations?

We stay updated with the latest tax laws and accounting standards to ensure your business complies with all legal requirements. We also provide guidance to help you avoid penalties.

Do you provide support for audits?

Absolutely. We assist in audit preparation by ensuring your records are accurate and organized. We can also liaise with auditors to streamline the process.

How often should I review my financial statements?

We recommend reviewing financial statements monthly to keep track of your business’s performance and address any issues proactively.

How can accounting services benefit my business?

Accounting services provide valuable insights, help you make informed decisions, ensure compliance, and save time. They also help identify opportunities for cost savings and revenue growth.

What industries do you specialize in?

We serve a wide range of industries, including healthcare, retail, real estate, and professional services. We tailor our accounting services to meet the unique needs of each industry.

What is tax planning, and why is it important?

Tax planning is the process of analyzing your financial situation to ensure you minimize tax liability while staying compliant with tax laws. It’s essential because it helps you keep more of your hard-earned money and plan effectively for the future.

What tax planning services does Alpha Accounting and Tax Solutions, LLP. offer?

Our tax planning services include:

1. Identifying Tax-Saving Opportunities
2. Strategic Planning for Deductions and Credits
3. Tax-Efficient Retirement Planning
4. Business Structure Optimization for Tax Benefits
5. Estate and Gift Tax Planning
6. Year-End Tax Strategies
7. Guidance on Estimated Tax Payments

Who can benefit from tax planning?

Tax planning is beneficial for individuals, small businesses, self-employed professionals, corporations, and anyone looking to reduce their tax burden and enhance financial efficiency.

How does tax planning differ from tax preparation?

Tax preparation focuses on filing accurate tax returns for the previous year. Tax planning is a proactive, year-round process aimed at reducing tax liability in future years through strategic financial decisions.

When is the best time to start tax planning?

The best time to start tax planning is at the beginning of the tax year. However, it’s never too late to implement strategies that can reduce your tax liability.

What are some common tax-saving strategies you recommend?

Strategies may include maximizing retirement contributions, taking advantage of available deductions and credits, tax-loss harvesting for investments, and ensuring business expenses are properly accounted for.

Do you assist with business tax planning?

Yes, we specialize in helping businesses plan for taxes. This includes optimizing business structures, managing payroll taxes, and identifying industry-specific tax benefits.

How often should I review my tax plan?

Tax plans should be reviewed annually or whenever there are significant changes in your income, investments, or life circumstances, such as marriage, having children, or starting a business.

Can tax planning help with future financial goals?

Absolutely. Tax planning is integral to achieving financial goals by ensuring that tax savings are reinvested or allocated effectively to meet your objectives.

What is tax planning, and why is it important?

Tax planning is the process of analyzing your financial situation to ensure you minimize tax liability while staying compliant with tax laws. It’s essential because it helps you keep more of your hard-earned money and plan effectively for the future.

What tax planning services does Alpha Accounting and Tax Solutions, LLP. offer?

Our tax planning services include:

1. Identifying Tax-Saving Opportunities
2. Strategic Planning for Deductions and Credits
3. Tax-Efficient Retirement Planning
4. Business Structure Optimization for Tax Benefits
5. Estate and Gift Tax Planning
6. Year-End Tax Strategies
7. Guidance on Estimated Tax Payments

Who can benefit from tax planning?

Tax planning is beneficial for individuals, small businesses, self-employed professionals, corporations, and anyone looking to reduce their tax burden and enhance financial efficiency.

How does tax planning differ from tax preparation?

Tax preparation focuses on filing accurate tax returns for the previous year. Tax planning is a proactive, year-round process aimed at reducing tax liability in future years through strategic financial decisions.

When is the best time to start tax planning?

The best time to start tax planning is at the beginning of the tax year. However, it’s never too late to implement strategies that can reduce your tax liability.

What are some common tax-saving strategies you recommend?

Strategies may include maximizing retirement contributions, taking advantage of available deductions and credits, tax-loss harvesting for investments, and ensuring business expenses are properly accounted for.

Do you assist with business tax planning?

Yes, we specialize in helping businesses plan for taxes. This includes optimizing business structures, managing payroll taxes, and identifying industry-specific tax benefits.

How often should I review my tax plan?

Tax plans should be reviewed annually or whenever there are significant changes in your income, investments, or life circumstances, such as marriage, having children, or starting a business.

Can tax planning help with future financial goals?

Absolutely. Tax planning is integral to achieving financial goals by ensuring that tax savings are reinvested or allocated effectively to meet your objectives.

What are the new federal tax brackets for 2025?

The federal income tax rates for 2025 remain at seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

Have there been any changes to the Alternative Minimum Tax (AMT) exemptions?

Yes, for tax year 2025, the AMT exemption amounts have increased due to inflation adjustments:

• Unmarried individuals: $88,100, with a phase-out beginning at $626,350.
• Married couples filing jointly: $137,000, with a phase-out starting at $1,252,700.

What changes have been made to the Minnesota Child Tax Credit?

Starting in tax year 2025, families eligible for the 2024 Minnesota Child Tax Credit can opt to receive an advance payment of their 2025 credit. To do so, you must file a 2024 Minnesota Individual Income Tax return to determine the credit amount and choose the advance payment option.

Are there any updates to Minnesota’s motor fuel taxes?

Yes, effective January 1, 2025, Minnesota will increase its state motor fuel tax to 31.8 cents per gallon for gasoline, diesel, and biodiesel, up from the current 28.5 cents per gallon. This adjustment includes a 28.3-cent per gallon excise tax and a 3.5-cent per gallon debt service surcharge.

How will the Minnesota homestead property exclusion change in 2025?

Beginning January 1, 2025, the maximum homestead property exclusion in Minnesota will increase by $7,600, bringing it to $38,000. This exclusion applies to homesteads valued at $95,000 or less, with the exclusion amounting to 40% of the property’s market value.

What should taxpayers be aware of regarding the expiration of certain federal tax provisions in 2025?

Several provisions from the Tax Cuts and Jobs Act (TCJA) are set to expire after 2025, including:

• Suspension of Personal Exemptions: The TCJA eliminated personal exemptions, replacing them with a higher standard deduction and increased child tax credits. Extending this suspension could impact taxpayers’ deductions.
• Changes to Bonus Depreciation: Adjustments to bonus depreciation rules may affect businesses’ capital expenditure deductions.

It’s crucial to consult with a tax professional to understand how these expirations may impact your tax situation.

How can Alpha Accounting and Tax Solutions, LLP. assist with these new tax law changes?

We stay abreast of all federal and state tax law updates to provide you with accurate advice and strategic planning. Our services include:

• Personalized Tax Planning: Tailoring strategies to minimize your tax liability in light of new laws.
• Compliance Assurance: Ensuring all filings adhere to the latest regulations.
• Proactive Communication: Informing you promptly about changes that affect your financial situation.

Please reach out to us to discuss how these changes may impact you and to develop a plan that aligns with your financial goals.

What is a beneficial owner?

A beneficial owner is an individual who directly or indirectly owns or controls a business, even if their name does not appear on legal documents. The term includes:

• Individuals who own at least 25% of the company’s equity interest.
• Individuals who have significant control over the company, even if they do not own 25%.

Which businesses are required to file beneficial owner information with FinCEN?

As of January 2024, the CTA mandates that most domestic and foreign corporations, limited liability companies (LLCs), and similar entities file their beneficial ownership information with FinCEN. Exceptions include:

• Large operating companies with more than 20 employees, over $5 million in revenue, and a physical presence in the U.S.
• Regulated entities like banks, insurance companies, and accounting firms are already required to report similar information to other agencies.

What information is required for the Beneficial Owner Filing?

The following details must be reported:

1. Full Legal Name
2. Date of Birth
3. Address (residential or business address)
4. Unique identifying number from a government-issued document (such as a passport or driver’s license) or a FinCEN identifier (if applicable).

When is the deadline to file this information with FinCEN?

• New businesses must file within 30 days of formation or registration.
• Existing businesses (formed before January 1, 2024) must file by January 1, 2025, to disclose their beneficial owners.

How often do businesses need to update their filing with FinCEN?

Businesses must update their beneficial ownership information within 30 days of any changes (e.g., a new beneficial owner or change in ownership percentages).

What are the penalties for failing to file or providing inaccurate information?

The penalties for failing to file beneficial owner information or providing false information can be severe:

• Civil penalties up to $500 per day.
• Criminal penalties, including fines up to $10,000 and potential imprisonment for willfully providing false information.

Are there any exemptions for small businesses?

Yes, certain businesses, such as large operating companies, regulated entities, or inactive entities, are exempt from the filing requirement. These businesses typically have sufficient transparency through other regulatory means.

What are the advantages of filing beneficial ownership information?

1. Increased compliance with U.S. laws.
2. Protection against fraud and misuse of business entities for illegal activities.
3. Business transparency may help in securing investors, partners, and loans.

How can Alpha Accounting and Tax Solutions, LLP. assist with Beneficial Owners Filing?

• We can help you determine if your business is required to file.
• We will assist in collecting and filing the necessary beneficial owner information with FinCEN.
• We ensure compliance with all regulatory deadlines to avoid penalties.
• We provide ongoing support for updates to beneficial ownership filings as your business changes.

What types of tax relief programs does Alpha Accounting and Tax Solutions, LLP. assist with?

We help you explore and apply for various tax relief programs, including:

1. Offer in Compromise (OIC): Settling your tax debt for less than the amount owed.
2. Installment Agreements (IA): Negotiating a monthly payment plan for outstanding tax liabilities.
3. Currently Not Collectible (CNC) Status: If you’re facing financial hardship, we can apply for CNC status, which temporarily halts IRS collection efforts.
4. Penalty Abatement: We work to get IRS penalties removed due to reasonable cause (e.g., illness, natural disaster).
5. Innocent Spouse Relief: If you believe you should not be responsible for your spouse’s tax debt, we help you apply for relief under this provision.

What happens if I don’t respond to an IRS notice?

Ignoring an IRS notice can lead to serious consequences, including:

1. Penalties and Interest: The IRS can add penalties and interest to any unpaid tax, increasing your liability over time.
2. Tax Liens and Levies: The IRS can place liens on your property or initiate wage garnishments or bank levies.
3. Increased Scrutiny: Failure to respond may lead to further audits or investigations.
4. Seizure of Assets: In the worst case, the IRS may seize your property to satisfy the debt.

If you’ve received a notice, we recommend contacting Alpha Accounting and Tax Solutions, LLP. immediately to address the issue before it escalates.

How can Alpha Accounting and Tax Solutions, LLP. assist with IRS wage garnishments?

Wage garnishments are a common IRS collection tool used to collect unpaid taxes. Alpha Accounting and Tax Solutions, LLP. will:

1. Stop Garnishments: We can negotiate with the IRS to stop or reduce wage garnishments by arranging alternative payment plans or settlements.
2. Release Garnishment Orders: We can work to get your garnishment order lifted, allowing you to regain access to your wages.
3. File for Collection Alternatives: We may propose alternative options like an Offer in Compromise or Installment Agreement to resolve your debt without garnishment.

What do I do if the IRS audits my business?

Business audits are often more complex than individual audits, but Alpha Accounting and Tax Solutions, LLP. can guide you through the process. We will:

1. Prepare Your Documents: We help gather and organize your business records to ensure that everything required by the IRS is ready.
2. Represent You in the Audit: We will be your point of contact, communicating directly with the IRS and presenting your case.
3. Negotiate Results: If the IRS uncovers discrepancies, we work to reduce the impact of audit findings and avoid excessive penalties.

Can I appeal an IRS decision?

Yes, you can appeal most IRS decisions, including audit findings, penalty assessments, and tax liabilities. Alpha Accounting and Tax Solutions, LLP. will:

1. File a Formal Appeal: We help you file an appeal with the IRS, presenting your case to challenge the decision.
2. Negotiation for a Better Outcome: We work to achieve a more favorable settlement by negotiating with the IRS during the appeals process.
3. Tax Court Representation: If necessary, we can represent you in tax court to resolve your dispute with the IRS.

How can Alpha Accounting and Tax Solutions, LLP. help if I have unfiled tax returns?

If you have unfiled tax returns, Alpha Accounting and Tax Solutions, LLP. can help you:

1. File Back Taxes: We prepare and file your unfiled returns for previous years, helping you get back into compliance with the IRS.
2. Avoid Penalties and Interest: We work to reduce or eliminate penalties and interest for late filings.
3. Negotiate Payment Plans: We can arrange a payment plan for any outstanding tax liability resulting from your back taxes.

What is a Tax Lien, and how can Alpha Accounting and Tax Solutions, LLP. assist?

A tax lien is a legal claim against your property due to unpaid taxes. Alpha Accounting and Tax Solutions, LLP. helps you:

1. Avoid or Remove a Lien: We negotiate with the IRS to either avoid or release a lien, preserving your credit and assets.
2. Offer in Compromise: If you qualify, we may be able to settle your debt for less than owed, including removing the lien.
3. File for Lien Withdrawal: In some cases, we can have the lien removed if your tax debt is fully paid or resolved through another agreement.

What is the Fresh Start Program, and how can Alpha Accounting and Tax Solutions, LLP. help?

The Fresh Start Program is an IRS initiative designed to help individuals and businesses pay back taxes in a more manageable way. We assist you by:

1. Evaluating Eligibility: We determine if you qualify for the Fresh Start Program.
2. Negotiating a Payment Plan: We help establish a reasonable installment agreement that fits your financial situation.
3. Removing Liens: In some cases, the program allows for the removal of tax liens once certain conditions are met.

How do IRS audits affect my future tax filings?

An IRS audit can impact future filings in several ways, but Alpha Accounting and Tax Solutions, LLP. can help ensure that your future returns remain compliant:

1. Filing Correctly Going Forward: We provide advice and guidance on how to avoid the issues that triggered the audit in the first place.
2. Prevent Future Audits: We can ensure that all future returns are filed accurately and in full compliance with tax laws to minimize audit risks.
3. Tax Planning for the Future: We offer proactive tax planning to minimize your future liabilities and reduce the chance of an audit.

What is the IRS audit process?

The IRS audit process typically involves:

1. Notification: The IRS notifies you of the audit and requests documentation.
2. Document Review: We gather and present the necessary documentation to support your tax return.
3. Communication with the IRS: We communicate with the IRS on your behalf, addressing any questions or issues raised during the audit.
4. Resolution: The IRS will issue a final determination, and we will work to ensure the resolution is fair and reasonable. If necessary, we can appeal the decision.