Accolade Accounting is a full-service CPA firm based in Decatur and Atlanta, GA. Below are answers to the tax and accounting questions we hear most from individuals, small business owners, real estate investors, and 1099 healthcare professionals. If you don’t see your question here, schedule a consultation, and we’ll walk through it directly.
A bookkeeper records day-to-day financial transactions: income, expenses, invoices, payroll entries. A CPA (Certified Public Accountant) has passed a state licensing exam and can do everything a bookkeeper does, plus tax planning, tax filing, audit representation, and advisory work like tax planning. Many businesses use both: a bookkeeper for ongoing recordkeeping, and a CPA for filing, strategy, and anything that touches the IRS directly.
The federal deadline to file individual returns (Form 1040) and C-Corp returns (Form 1120) is April 15. S-Corp returns (Form 1120S) and partnership returns (Form 1065) are due March 15. If either date falls on a weekend or federal holiday, the IRS moves the deadline to the next business day.
Estimated taxes are due four times a year:
If a due date falls on a weekend or federal holiday, the deadline moves to the next business day. The January payment isn’t required if you file your return and pay the full balance due by February 1.
Possibly. Your W-2 withholding covers your wage income, but it doesn’t account for income from a side business. If your side business generates enough profit, you may owe estimated taxes on top of your regular paycheck withholding to avoid an underpayment penalty. This is especially common for married couples in which one spouse has W-2 income and the other runs a business. See our post on tax filing when one spouse has a W-2, and the other runs a business for how the two income types interact.
The IRS can charge an underpayment penalty, calculated based on how much you owed, how late the payment was, and the current interest rate the IRS applies to underpayments. Paying as soon as possible reduces how much interest accrues. If you’re consistently behind on estimated payments, our Tax Relief Strategies team can help you get current and set up a payment structure going forward.
Yes. You can file an extension up until the April tax deadline. This gives you an additional six months to file your taxes. However, doing so does not extend the deadline to pay. If you expect to owe taxes, pay them by the original April deadline to avoid interest. For a full walkthrough of your options, see our Individual Tax Planning and Advising services.
The general rule is three years from the date you filed, since that’s how long the IRS typically has to audit a return. There are exceptions: keep records for six years if you underreported income by 25% or more, seven years if you’re claiming a loss from a bad debt or worthless securities, and indefinitely if you never filed a return or filed a fraudulent one. Keep records tied to an asset, like a home or investment property, until the statute of limitations closes on the year you sell it.
There’s no single trigger, but common flags include income that doesn’t match what employers or clients reported to the IRS, deductions that are unusually large relative to your income, consistent business losses year after year, large cash transactions, and simple math or reporting errors. Most audits are resolved by mail and don’t require an in-person meeting. If you’ve received an audit notice, our Individual Tax Relief or Tax Relief Strategies team can help you respond.
An LLC is a legal structure that determines your liability protection and how your business is treated by the state. An S-Corp is a tax election, and an LLC can elect to be taxed as an S-Corp once it meets certain conditions. The decision usually comes down to how much profit your business generates: an S-Corp election can reduce self-employment tax on part of your income, but it adds payroll and filing requirements an LLC alone doesn’t have. This is a numbers-specific decision. Our Business Tax Planning and Advising team can model both scenarios against your actual income.
To qualify, you have to use part of your home both regularly and exclusively for business. Regular use means it’s not occasional or incidental. Exclusive use means that space isn’t also used for personal purposes, even if it’s not a separate room. If you meet both tests, you may be able to deduct a portion of expenses like rent, utilities, and insurance based on the percentage of your home used for business. Our Small Business Tax Accountant team can help you determine which calculation method gets you the better deduction.
Estimated taxes are taxes that need to be paid in advance of filing a tax return. They should be paid by anyone who earns income that is not subject to withholding. This includes but is not limited to people who expect to owe more tax than is taken out of their paychecks. People who have self-employment income, investment income, or other income should also pay estimated taxes.
The IRS typically starts accepting tax returns in the later part of January. This means you can file your taxes as soon as you get the necessary documents that you need to file. For example, you will need your W-2 from your employer, contribution documents from charitable gifts or 1099s from any freelance work.
The procedure for filing a deceased person’s tax return can be time-consuming and challenging, depending on the deceased’s specific situation. Depending on the estate representative’s authority, the legal representative of the deceased’s estate is often responsible for submitting the final tax return.
The executor typically has the legal authority to access the deceased individual’s financial records and accounts, and to take the necessary steps to fulfill their tax obligations. The personal representative is also responsible for filing any tax returns for prior years, if necessary. Depending on the deceased person’s financial situation, tax returns may need to be filed.
Yes, small business taxes can typically be filed separately from personal income taxes. A business, regardless of size, is a separate legal entity and must pay taxes on its income according to the applicable taxation laws. However, there are a few nuances to consider. Depending on the type of entity and the state in which the business is registered, a business may be subject to different tax regulations than those governing personal income taxes.
To file taxes separately, small business owners must first identify which tax category they fall into, as this will determine the type of taxes they will need to pay. Additionally, different kinds of income, such as self-employment income, may be subject to different tax rates. Therefore, it is important for small business owners to have a third party assist them in the process. Our Small Business Tax Accountant team handles this daily.
Small businesses must file individual income tax returns, depending on their business entity. Sole proprietors, partners, and LLCs and corporations must file an annual tax return
In addition, small companies must file employment and payroll taxes, based on the number of employees the company has and the range of services it provides. In addition, federal and state taxes will have to be filed, depending on the structure of your legal entity and the revenue accrued. Ultimately, you want to understand all the various regulations that apply to your company.
The process for filing your small business taxes largely depends on the type of business that you are registered as.
If you are a sole proprietor or single member LLC, you will need to fill out a Schedule C form. To do that, you will need to fill out a Schedule C form and attach it to your 1040 form. You can view a copy of the Schedule C here: https://www.irs.gov/pub/irs-pdf/f1040sc.pdf.
If you are a Partner LLC, you will need to file a Form 1065. In addition, you will need to provide each partner with a Schedule K-1. More information on Schedule K-1 can be found here: https://www.irs.gov/charities-non-profits/exempt-organizations-annual-reporting-requirements-reporting-joint-ventures-partnership-income-expenses-and-assets-based-on-form-1065-schedule-k-1
Small businesses that are organized as a C-Corp are required to file a Form 1120. The corporation must file taxes on profits and shareholders must file taxes on any dividends that were received during the tax year in question.
Businesses registered as S Corporations must file a 1120S. Interest to shareholders should be reported with a Schedule K-1.
To file an extension for your business, submit Form 7004 by your original filing deadline. The type of entity you’re registered as determines which part of the form you’ll file.
To fill out Form 7004 you’ll need your EIN and legal business name on hand, along with the type of extension you’re filing for.
Filing an extension does not extend your deadline to pay. If you anticipate owing taxes, pay by the original deadline to avoid interest. Our Small Business Tax Accountant team can confirm which deadline applies to your entity.
Yes. As a 1099 contractor, no one withholds taxes from your pay, so you’re responsible for estimating and paying your own income tax and self-employment tax four times a year. This applies to locum tenens physicians, anesthesiologists, cardiologists, and CRNAs working on a 1099 basis. See our full guide on 2025 tax year filing for 1099 healthcare workers for deadlines and what to set aside.
It depends on your income level and how many states you work in. An S-Corp election can lower your self-employment tax, but it adds payroll requirements and, for locum tenens providers working multiple assignments, more moving parts to manage across state lines. Our post on 1099 anesthesiologist tax strategy breaks down how the S-Corp decision, estimated taxes, and multi-state filing interact. Our Locum Tenens accounting team can review your specific assignments before you make the election.
Your tax home is generally based on where you’re domiciled, not on which states your assignments take you to. But taking assignments in multiple states can still create state filing obligations in each state where you worked, separate from your home state return. Our post on Georgia tax residency rules for 1099 healthcare professionals working multi-state assignments covers how domicile and multi-state assignments interact.
If you have a real estate business, you’ll have to file taxes as a self-employed person. It’s important to note that renting property alone is not considered a business.
However, if you do enough real estate-related activities to be considered a business, the IRS treats you as a business, and you won’t be taxed as an individual. How you report income and expenses depends on the type of property you own and how you use it. Learn more about Real Estate Tax Accounting.
If you lease out a property, most related expenses are deductible, including property taxes, insurance, maintenance, repairs, mortgage interest, utilities, and depreciation. Whether a specific expense is deductible right away or has to be depreciated over time depends on whether it counts as a repair or a capital improvement. See our post on rental property repairs vs. improvements for how the IRS draws that line. Our Real Estate Tax Accounting team can review your specific property expenses.
A repair keeps the property in its normal working condition and is typically deductible in the year you pay for it. An improvement adds value, restores the property to a new condition, or adapts it to a new use, and generally has to be depreciated over several years instead of deducted all at once. Our full breakdown is in rental property repairs vs. improvements: what the IRS requires.
Preparing taxes for real estate investments can be complicated. Here are some basic guidelines that you should consider when filing your taxes as a real estate investor: If you leased out a property, then almost every expense is deductible. This includes property taxes, insurance, maintenance, repairs, interest, utilities, and depreciation.
Conversely, if you are simply buying and holding a property, then you can only deduct mortgage interest and property taxes. You cannot deduct other expenses like repairs, utilities, insurance, etc. Be sure to keep track of all your expenses!
