Albaugh Tax Group LLC

Frequently Asked Questions

As we continue to answer people's questions, this section will change fairly frequently. Please feel free to submit your own questions for us to try to answer.

• Your engagement letter is so long and has such tiny print. What does it really say?


• Will filing an extension make me look bad? Isn't the extension for people who just can't get their act together to file timely?


• How much time does an extension give me to complete my return?


• I have created an LLC for my business. Isn't that enough (and easier than creating a corporation)?


• Is interest deductible under the Tax Cuts and Jobs Act of 2017?


• I made a mistake when I filed my tax return. What do you charge to prepare an amended return?


• My coworker gets a huge refund every year. We work the same job, why is mine so much smaller?


• Can I pay my Albaugh Tax Group LLC bill with cryptocurrency?

Your engagement letter is so long and has such tiny print. What does it really say?

We try to keep the terms of our engagement (what we each are expected to do for ATG to prepare your tax return) clear, but even we can miss the mark sometimes. Here is a quick rundown (meaning, most, but not all) of the terms, following the same order and headings as on the engagement letter (for individuals):

1. Duration and Purpose: You are only hiring us to prepare your 2022 tax return unless you sign another agreement for other services. If you didn't sign the engagement letter but still brought us your stuff, the terms of the engagement letter still apply.
2. Supporting Data: We're not going to make numbers up for you. If you think you earned so much money or deserve a deduction, make sure you have documentation to support it. Also, if you didn't give ATG something, that's on you.
3. Timelines: Personal returns are due April 18, 2023, as are any payments that need to be made. Extensions can be filed (and will be if you don't bring ATG information quickly enough) that will give another 6 months. If we ask for more information, get it to us quickly or we might get annoyed and raise our bill. Also, be patient waiting for us to finish your tax return or we might get annoyed and raise our bill.
4. Client Review: Be sure to look over your tax return before we file it. We're human; we sometimes make mistakes. Better to catch any mistakes before the IRS does.
5. ATG Mission: You are our client, not the IRS. We will do everything within the law and the Internal Revenue Code to minimize your taxes. While we do not audit your information, we will let you know if something doesn't seem right; we will also let you know what risks are involved if we see a way to reduce your taxes so that you can decide what you want to do.
6. Practice Standards: If something is going to cause a penalty, we will let you know about it. If we don't see a realistic way of defending a position on your tax return, we're not going to take it. If you push us to do so anyway, we will likely tell you to find another accountant.
7. Confidentiality: We don't share your information with anyone outside our office without your consent except in limited legal proceedings. We'll let you know when you should be talking to an attorney (doesn't happen very often in the normal course of preparing a tax return).
8. Privacy: Similar to the Confidentiality section. Also, divorces can get messy, so if ATG is preparing the returns for both parties, then both parties are going to sign waivers of conflicts of interest or ATG is not preparing either return. Finally, don't send us private information directly through e-mail; we have a secure portal for that.
9. Document Retention: We hold onto your information for seven years from the date of the last return once a folder fills up or you decide to stop using us. After that, the shredder gets hungry and we feed it. If you want us to mail the folder to you instead, get your wallet out.
10. Payment Terms: Your bill is due when we get your return done. We only charge interest if you're a bum who waits over a year to pay us (don't be that guy). We don't typically refund prepayments.
11. Cost of Service: We charge our fees based on the amount of time it takes us to prepare your return. If your return is simple, it won't cost much for us to do it; if your stock trades take up an entire ream of paper on their own, your return is probably not going to be cheap. Services outside the regular tax preparation will be billed seperately. We like cash, but we accept most forms of payment, though not Venmo or Paypal.
12. Dispute Resolution: The only people who take your money faster than the IRS are attorneys; we try to avoid them when possible. Let's discuss problems first, then move to fisticuffs before we go to the sharks, shall we?

Will filing an extension make me look bad? Isn't the extension for people who just can't get their act together to file timely?

While many people view extensions this way, the opposite is actually closer to the truth. Several reasons exist for filing an extension, ranging anywhere from getting your information to your tax return preparer too late for him or her to complete it timely to owning a business that needs more time to get information collected to wanting to wait for certain things (like stimulus checks) to go through before filing.

Filing an extension actually brings several benefits. For one, it typically removes you from the audit cycle (the random drawing of tax returns the IRS does every year for quality control, not to be confused with audits that happen as a result of something that gets flagged on your return). Also, having the extra time to prepare the return helps to insure accuracy and avoids having to work through letter audits.

How much time does an extension give me to complete my return?

An extension typically gives you 6 months or until the normal deadline (not extended deadlines due to things like COVID-19) plus 6 months. For pass-through entities (partnerships and S-Corporations), this usually means until September 15th. For individuals, trusts, estates, and C-Corporations running on a calendar year, this is typically October 15th. If your entity operates on a fiscal year, please contact us so we can help determine when your deadlines are.

I have created an LLC for my business. Isn't that enough (and easier than creating a corporation)?

Many people get confused over terms used by accountants and the IRS. LLC is one of those, especially because it is usually partnered with the term "S-Corporation."

An LLC (Limited Liability Company) does not save you on your taxes. The primary purpose of having an LLC is to protect your personal assets from those of your business (please contact an attorney for an explanation of what this means). As far as the IRS is concerned, your LLC is an ignored entity unless you tell them you intend to do something specific with your LLC (such as having it taxed like an S-Corporation). Until you make such an election, the IRS will expect your information to be reported on either a Schedule C (in the case of an LLC owned by a single person) or a partnership return (Form 1065).

Please be aware that ATG does not employ any attorneys, so we cannot recommend what type of entity to form, but creating an LLC with an S-Corporation election for any active sources of income is often a way to reduce a person's overall tax burden. Creating a second LLC (no election) for any passive sources of income is a strategy often employed to reduce personal liability while being invested in such activities.

This can be a tricky discussion, so if you have any questions, please set up an appointment for us to discuss the tax implications of your particular situation with you, or contact an attorney for legal recommendations.

Is interest deductible under the Tax Cuts and Jobs Act of 2017?

The TCJA changed many things about what is and is not deductible. With regard to interest, most of the rules have remained the same. Mortgage interest is a deductible expense if your direct expenses exceed the standard deduction. Businesses can continue to deduct interest.

A limitation does exist on deducting interest in businesses, but most small businesses are excluded from these provisions. As always, we would love to talk to you about your particular situation.

I made a mistake when I filed my tax return. What do you charge to prepare an amended return?

If Albaugh Tax Group LLC prepared your original tax return for you, we generally do not charge for preparing an amended return as long as ATG was made aware of all pertinent information during the tax process. If someone else prepared your return, or if the amendment needs to be made because of information previously not disclosed to ATG, we charge our usual rates for tax preparation.

My coworker gets a huge refund every year. We work the same job; why is mine so much smaller?

Every person's situation is different. We have found that any number of things could be happening on your coworker's return that you are not seeing or that s/he is not telling you about, anywhere from dependents you don't know about, extra jobs being taken on the side, having a W-4 set so that more money is taken through the year, or even idle boasting among friends.

While we understand that some people enjoy seeing a large refund or use the refund as their vacation or savings funds, our typical goal is to try to get taxpayers to as close to a $0 return as possible since this means that a) they have control over the majority of their money through most of the year and b) withholdings are matching actual taxes owed.

Can I pay my Albaugh Tax Group LLC bill with cryptocurrency?

We now offer the ability to pay our bill using cryptocurrency. Please let us know if you would like to and we will send you an invoice allowing you to do so. Please note that this is only for our bill, not for any taxes that need to be paid. We currently accept Bitcoin, Bitcoin Cash, Dai, Ethereum, Litecoin, and USD Coin.