Ask Billy
Your questions, answered.
Billy Edgemon answers your accounting and tax questions.
Where’s my refund?
Refunds are typically issued within 21 days of e-filing. The IRS has a tool on their website irs.gov. Most states have a similar way to find refund information. With a few pieces of information from your return, you can quickly find the status and projected date for...
I started a business this year. How should I handle my accounting? What are my tax filing requirements?
Congratulations on starting down the path of being your own boss! I can assist you with setting up and maintaining your accounting records in QuickBooks. The backbone of all successful businesses is accurate and timely financial information. This will also allow...
My current tax preparer does an OK job, but I always feel rushed during my tax appointment. Also, he’s difficult to reach when I have a question. I want to change to someone else, but I’m afraid that some information might get lost by going to the new person.
I hear variations of this question frequently. If you have copies of your last 2 years tax returns, I can review them for any items that will impact your current year tax returns. Alternately, we can request transcripts or copies from the IRS. There is no reason to be...
I don’t think I can file my returns by April 15. What should I do?
A 6-month extension is available to everyone. However, if you think that you will owe, you should pay that estimated amount by April 15. This will avoid late-filing and late-paying penalties and interest. Please contact me and I can file the extension for you...
Do you need to file a federal tax return this year?
Maybe. There are multiple factors such as income, filing status, dependents and age to determine your filing requirements. Even if you don’t need to file a tax return, there are times when you should. You may qualify for a tax refund even if you don’t have to file....
I just got a phone call from someone saying they were from the IRS. They wanted some personal information and my credit card number for back taxes that I owe. I don’t know what they are talking about. What should I do?
This is a scam. The IRS never contacts individuals via phone, email, text or social media. Usually, the first IRS contact will be through the U.S. Postal Service. You should report any helpful information to phishing@irs.gov. Per former IRS Acting Commissioner Danny...
I am about to start a new business and I think I want to incorporate or maybe be an LLC. Which should I pick?
There are an array of business entities to choose from such as LLCs, C Corps, Partnerships, and S Corps. There is no easy and clear cut choice that fits every business. Each type has its own positives and negatives. It depends on the type of business and your future...
I just started a small business and have paid some outside sales people. They aren’t employees. What am I required to report to the IRS and give the sales people?
You are required to issue a Form 1099 to each person that earned over $600 in a given year. These should be mailed by Jan. 31. However, there are exceptions to who should be issued a 1099. You also must send a special version to the IRS by Jan. 31. Here’s a tip: When...
I had a part-time summer job and earned $1,000. I was not an employee and they did not withhold any taxes. I thought I would be receiving something from the company that paid me. I haven’t received anything yet. What should I include on my tax return?
The IRS requires that taxpayers include every dollar earned on their returns, even if a 1099 is not received. The company you worked for is required to issue a Form 1099 to each non-employee that earned over $600 in a given year. They are supposed to mail these by...
I’m ready to file my taxes, but I didn’t receive my W-2 from my employer. What should I do?
Employers should send out an employee’s W-2 by Jan. 31 of each year. If you haven’t received it by mid-February, you should contact the employer. Make sure they have your correct mailing address. If your employer won’t provide one, then there are other options...