Common Questions
"How can I reduce my tax liability?"
At Foothills Accountants, we are skilled in identifying relevant deductions, credits, and tax planning strategies tailored to your specific financial situation. We offer advice on various aspects such as investment decisions, business structure, and expense tracking to help minimize your tax liability.
"When is the best time to start tax planning?"
The best time to start tax planning is now. At Foothills Accountants, we believe in proactive tax planning throughout the year to help you to take full advantage of tax laws and regulations, avoid surprises, and efficiently manage your tax obligation.
"What should I bring for my tax preparation appointment?"
You should bring relevant financial documents including W-2s, 1099s, expense receipts, a record of income sources, deduction information, social security numbers for yourself and dependents, last year's tax return, and any other documentation that may affect your tax situation.
"How long should I keep my tax records?"
The IRS recommends keeping records for at least 3 years from the date you filed your original return, or 2 years from the date you paid the tax. However, if any irregularities are detected, they may go back further, so we suggest holding onto your tax documents for seven years to be safe.
"Do I need to report cryptocurrency transactions on my taxes?"
Yes, the IRS treats cryptocurrency as property for tax purposes. This means that you are required to report all cryptocurrency transactions, including buying, selling, trading, and mining activities. Our Cryptocurrency Tax Support can help you navigate this complex process.