FAQs
Janes & Co. exists to serve our clients with integrity and wisdom, providing guidance that brings peace of mind and helps others faithfully steward the resources God has entrusted to them.
Frequently Asked Questions
Straight answers for what you need to know.
When should I file my taxes?
Tax deadlines vary depending on the type of entity that is filing.
Individuals file by April 15th
S-Corporations file by March 15th
Partnerships file by March 15th
Non-profits file by May 15th
C-Corporations file by April 15th
Should I get a refund every year and when can I expect it?
A tax refund is money the government owes you back if you overpay your taxes during the year. Many refunds happen when you over withhold on your W-2 or pay in too much in estimated quarterly payments for a business. Refundable credits like the Child Tax Credit and the Earned Income Tax Credit can also create a refund.
Expect your refund within 3 to 6 weeks after e-filing. To check the status, log into the IRS website and click the “Where’s my refund” link. You will need your SSN, filing status, and the exact refund amount.
When would I need to file an extension and how does it work?
File an extension if you are missing information, dealing with personal circumstances, or have a complex issue that needs more time. You are required to make a reasonable estimate of what you owe based on the information you have.
An extension gives you more time to file the paperwork, but not more time to pay what you owe. Extensions must be filed by the original deadline. Failure to file penalties run 5% of unpaid taxes per month, up to 25%, and filing an extension avoids that penalty. Once filed, you have 6 additional months to file the return.
How can I legally reduce my taxes?
Reducing your taxes begins with proactive planning, not last minute tax preparation. The most common tax saving strategies involve:
Taking advantage of available tax credits
Maximizing your business expenses
Contributing to retirement accounts
Utilizing depreciation
Making estimated tax payments to avoid penalties
Timing income and expenses strategically
Our tax planning process focuses on finding opportunities throughout the year, not just during tax season. By meeting proactively, we help you make informed decisions that reduce your tax liability and keep more of your hard earned money.
What should I do if I receive a letter from the IRS or State?
After you have reviewed the letter, contact our office and provide a copy along with any additional information needed. We will review it, explain what it means, and help determine an appropriate response. Tax notices are issued for a variety of reasons including:
Missing information
Changes the IRS or state have made to a filed return
Balance due notices
Estimated penalties
Identity verification requests
Responding incorrectly, or not at all, can result in additional penalties, interest, or collection actions. Our goal is to take the stress out of the process by helping you understand the situation, communicating with the taxing authority, and working toward a resolution as quickly as possible.
What are the benefits of forming an LLC?
The primary benefit is the limited liability protection granted when the LLC is formed correctly. Personal assets like your house, car, and personal savings are generally protected from business debts or lawsuits.
The second major benefit is tax flexibility. By default, LLCs are pass through entities, meaning profits and losses pass through to your personal tax return, which shields you from the double taxation C-corps face. LLCs are also relatively simple to maintain and easy to operate.
Should my LLC be an S-Corp, Partnership, or other entity?
It depends on your goals, the number of members managing your LLC, and your liability concerns. There is no one size fits all answer to this question.
Each entity has its own advantages and disadvantages. At Janes & Co., we evaluate all the factors to help you choose a structure that protects your business, minimizes taxes where appropriate, and supports your long term goals.
How do I pay myself if I run a business?
The best way to pay yourself depends on how your business is structured. If you operate as a single member LLC or a partnership, you typically pay yourself through owner draws or dividends from the company’s profits.
If your business is taxed as an S-Corp, owners who actively work in the business are generally required to pay themselves a reasonable salary through payroll. Remaining profits can then be distributed as owner draws, which can provide large tax savings. Paying yourself incorrectly can lead to tax issues, penalties, and missed savings, so the method matters.
What accounting software do you recommend?
For most business owners we recommend QuickBooks Online. It is reliable, connects directly to your business bank account so no transactions are missed, and it produces clean financial reports, automated payroll, and easy collaboration with your accountant.
The best software still depends on your size and specific needs. Wave and Xero are both solid alternatives.
What information do you need from me to get started?
It depends on the services you are looking for, but most new clients can begin by providing details about themselves and their business. For individual tax services we typically request prior year tax returns, government issued IDs, income documents such as W-2s and 1099s, and information about deductions, credits, and major life changes.
For business services we typically request business formation documents, prior year business tax returns, recent financial statements such as a profit and loss and balance sheet, and payroll information if applicable.
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