You can expect to receive current year tax returns, an electronic tax organizer, amended tax returns, tax elections, and IRS and state representation if necessary.
Communications and deliveries
We will discuss your tax needs by phone, e-mail, Skype, or GoToMeeting. We will tell you exactly what to send us via either a secure and encrypted upload to ShareFile, e-mail, fax, mail or courier. We acknowledge your communications right away, so you are never left wondering.
Current-year tax returns
We will prepare your entire federal and state income tax returns using all available trader tax status benefits. It’s not a problem if you and your spouse have other significant activity. We are also general tax experts with many ideas for saving money. We have been successfully servicing non-trader clients since our company was founded in 1983.
You will receive an electronic tax organizer via email. If requested, we can also email returning clients an organizer with prior year tax information and input areas for current year information. When you e-mail it back to us, we can import your data directly into our tax software. Do not enter trades into the e-organizer, as that is inefficient. (We recommend a trade accounting solution our accounting service for securities traders.)
Prior tax returns and amended returns
We will also review up to two years of previous tax returns to see if we can get you a tax refund retroactively by filing an amended tax return (a simple form 1040X). We will also look for errors. For example, we often find that traders omitted ordinary tax deductions for many types of allowable expenses that traders with trader tax status report on Schedule C. This discovery usually generates thousands of dollars in tax refunds.
If you want to elect Section 475 mark-to-market (MTM) accounting for the current year, you must do so by April 15 (individuals) or March 15 (existing calendar year corporations). Most likely, we will be working on your tax preparation before those deadlines and can consult with you on this matter as well. We can prepare the elections for you. (Read Chapter 2 of Green’s Trader Tax Guide for more on MTM.)
We will consult with you on how to qualify for trader tax status. (See our page on trader tax status for more information.)
If you trade forex, consider a Section 988 “capital gains election” on a contemporaneous “good to cancel” basis to opt out of Section 988 ordinary gain or loss treatment and potentially into lower 60/40 tax rates of Section 1256(g). (Read Tax Treatment: Forex.)
IRS and state representation
Rest assured, if you receive an exam notice, we’ll take care of everything. Our representation usually eliminates the need for a personal meeting between you and the IRS agent, and that helps to narrow the focus of your exam. Our greatest strength is in preventing IRS controversy and winning exams quickly when they do occur. (Read Dealing with the IRS and States and consider our IRS and State Tax Exam Services). With our firm’s name listed on your tax returns, you will have peace of mind knowing that the IRS will not have a field day challenging your return or denying trader tax status. Even if we didn’t prepare your tax returns, consider us for help with your exam at any time — exam, appeals, or tax court.