when should i go see my accountant? ( waiting for 1099s to arrive )
Last year I went to a CPA to help me figure out my estimated taxes for 2010. I payed my quarterly estimates and kept all receipts. Would going in january to figure out what I owe or if i got some kind of refund be appropriate considering I dont believe I will be receiving a 1099 from the club? Its a silly question i guess but I think the sooner the better.
Also would giving him an excel spreadsheet of my net earnings be a good thing to do, Ive just been keeping it all in a notebook this year.
Re: when should i go see my accountant?
I think you can go to the accountant anytime after January 1st. Call them and find out. I usually go mid February. A notebook is fine. Whatever the accountant is used to. They probably don't care as long as you're organized and have the correct figures. :)
Re: when should i go see my accountant?
unfortunately, attempting to file an end of year tax returns before possible 1099's arrive involves a significant amount of 'audit risk'. The problem is that IRS computers will attempt to link and cross-check every 1099 report they receive with a specific line item entry on the tax return of the person whose name and SS# matches the name and SS# listed on the 1099. If the IRS computers fail to find such a match, an audit is likely to follow based on the premise that the tax return filer is attempting to NOT report the 1099 income.
Granted that the actual money listed on a club's 1099 may already comprise a portion of the total income the dancer is reporting on her end of year tax return. However, without a specific line item entry specifically listing the exact amount of income reported on the 1099, the IRS has no way to know whether the 1099 income was actually reported ... and will automatically assume that it has NOT been reported. Thus filing an end of year tax return prior to the latest date by which a 1099 report can legally arrive ( essentially the first week of March, since 'payers' are required to send out 1099 reports by the end of February ), and then having a 1099 form show up after the end of year tax return has been filed, will very likely precipitate an IRS audit as well as the necessity to prepare and file a second, 'amended', tax return ( requiring another trip and another check to your accountant ).
Also, filing an 'amended' tax return arguably increases the probability of a future 'random' IRS audit, if for no other reason than the existance of an 'amended' tax return filing conclusively proving that an 'error' was made in the first filing ! The IRS - for better or worse - will assume that previous filings of 'erroneous' tax returns which had to be amended after the IRS instituted an audit ( in this case for the simple and innocent reason of no separate line item tax return listing that matches a 1099 received from a club ) are more likely to file 'erroneous' future tax returns as well.
Because of the 4th Quarter estimated tax payment deadline of January 15th, you still need to see your accountant in early January. However, it's NOT a good idea to file your end of year tax return ( which isn't due until April 15th ) before the possibility of 1099's showing up in your mailbox is exhausted ( i.e. mid-March ) unless you are ABSOLUTELY CERTAIN that 1099's will NOT be issued by the club(s) you have worked at during the previous year.
Yes a spreadsheet would save your accountant some work and correspondingly save you some money ... particularly where estimated tax underpayment penalties might be concerned. If the spreadsheet lists the income and expenses chronologically, it's much easier to calculate actual quarterly 'net' incomes and compare them to the actual quarterly estimated tax payments made throughout the previous year.
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Re: when should i go see my accountant? ( waiting for 1099s to arrive )
Ask your club about the 1099. Most are supposed to issue them, but many do not.
If you have all of your receipts & such, why don't you just take them over to your accountant now? You won't be able to file until he can complete everything with the 1099 forms, but at least you'll be at the top of your accountant's client list so they'll be able to finish your taxes soon. The faster you get them in the faster you get any returns. Keep in mind though, employers don't have to send out W-2s & 1099s until about Jan 21st... so you have plenty of time before you might even get all of your forms back.
Re: when should i go see my accountant? ( waiting for 1099s to arrive )
^^^ W2 deadline is January 21st but 1099 deadline is the end of February !!!
Re: when should i go see my accountant? ( waiting for 1099s to arrive )
You guys are so helpful thank you:)
Re: when should i go see my accountant? ( waiting for 1099s to arrive )
I always wait until the beginning of March. The deadline for you to be served with IRS reportables like 1099's is the end of February.
Re: when should i go see my accountant? ( waiting for 1099s to arrive )
Quote:
Originally Posted by
Melonie
^^^ W2 deadline is January 21st but 1099 deadline is the end of February !!!
Ooops ! Didn't see that until after I posted. What she said. :-[