• Will Filing an extension increase my likelihood of an audit by the IRS?

No.  As long as you file a complete and accurate return (including extensions), you will not increase your likelihood of an audit.
It's the information included in the return, not the time that it is filed that has audit potential.

• Will my return be audited if I amend a prior year?

No.  If the tax law requires the inclusion of something or allows the deduction to be claimed, the filing of an amended return is appropriate.

• I usually don't turn in my tax material to my accountant until the filing deadline.  Will my return still be filed timely?

Probably not.  Even though you have provided us with your information by the filing deadline, there might not be enough time to prepare
the return, especially in the event that any additional information from you would be necessary.  If a return cannot be filed by the deadlines,
we will automatically file an extension for the client.  It is extremely important, however, that you provide us with your tax information at
least two weeks prior to the final deadline; otherwise, we cannot guarantee that your returns for the year will be filed by the final deadlines.

• What is the difference between cash basis and accrual basis accounting?

Cash Basis accounting records transactions when cash (or other form of currency) changes hands.  That is when the customer pays for
the product.  Accrual accounting records the transaction when the buyer and seller agree that a sale has occurred, i.e., when an order is
placed or a contract is signed which is usually before the cash is actually received.  For tax purposes, the cash basis results in lower
taxes when a business usually gets paid after they have paid for their expenses related to the sale.  When the company usually is paid
up front, and then incurs expenses, the accrual basis produces a lower tax.

• If I sell my residence at a loss may I deduct it on my income tax return?

No.  You must report the gain, but you cannot deduct the loss on the sale of your residence.  However, under the 1997 Tax Act, qualifying
taxpayers may be able to exclude up to $250,000 of the gain, $500,000 of the gain on a jointly filed income tax return.

• Do I have to pay tax to the IRS on child support payments I received?

No; you don't have to report child support payments received on your IRS tax return.  Child support payments are neither taxable to the
recipient on his/her IRS tax return, nor tax deductible by the payer on his/her IRS tax return.  Any alimony payments that include an
element of child support payments are not taxable on your IRS tax return as to the child support payments element.  If tax deductible
alimony payments include an element of child support payments and partial payments are made the payments must be credited first to
the non tax deductible child support payments.

• Do I have to pay tax to the IRS on my gambling winnings?

Gambling winnings are fully taxable and must be reported to the IRS.  If you are not a professional gambler, it is important to keep and
accurate diary or similar record of your gambling winnings and gambling losses.

Hiring an accountant, tax preparer or bookkeeper or buying software to prepare your tax return should be treated like any other business
decision using cost-benefit analysis.  How much will you have to pay vs how much time, aggravation and money will you save.  If you
have a simple return and do not mind spending the time and doing the math, prepare your return by hand.  As your return becomes more
complicated, software or a tax service can save you time.  Taxpayers with returns that include large un-reimbursed employee expenses,
rental property, small businesses, farms, children under 14 with over $1,400 investment income, questions about retirement contributions
or questions about classifying expenses between forms should definitely hire an accountant to help with the return preparation.  Expect
more expensive preparers to include tax saving's tips for the future as well.  Remember, don't be afraid to interview your accountant.  He/she
is working for you.  Ask him or her questions about what is going into your return.  If he/she doesn't answer your questions or is unwilling to
communicate with you about your concerns, you should seek accounting advice elsewhere.

- Office Address -
9437 Double Diamond Parkway, Suite 17  .  Reno, NV 89521
Tel: 775 345-7255   .   Fax 775-348-7335