What are these new 1099-K froms the IRS is requiring?

Bbusinesses, get ready to receive 1099-K forms (Merchant Card and Third Party Network Payments) from credit card networks, i.e.,the companies that process your credit and debit card payments. This form will report the gross amount paid to the taxpayer with no adjustments for fees, chargebacks, returns or sales tax.  For additional informaiton or to find our if this form will apply to your busines, call us at 716.652.9373.

My daughter is 23 and in school full-time, does she still qualify as my dependent?

Your child will still be considered a dependent as long as they are under the age of 24 and have been in school FULL-TIME for at least 6 months of the year.  If your son  or daughter does NOT meet this criteria, then you can no longer claim him or her as a dependent on your return.

I have heard that I can file federal and state extensions this April 15th and not have  to pay my tax liability until October 15th. Is this true?

No. Filing the federal and NYS extensions on April 15th whcih extend the filing of your tax return to o October 15th, only permit an extension to file the actual paper documents. Any tax liability due with the returns must be sent on April 15.  If not, there are penalty and interest charges assessed up until the liability is paid.  Tack that onto a hefty tax bill and you could really be significantly increasing the amount. If you need to extend the mailing of your tax documents until October, it is best to estimate any amount due and mail it on April 15.

Can I drop off my tax return information or should I schedule an appointment with one of your tax preparers?

We usually suggest that first-time clients come in and meet with us to discuss your tax return.  We like to get to know the face that goes with the voice!  We also  suggest this if yours is a complex return with many additional schedules or extenuating circumstances such as a move, marriage, divorce, death  of spouse or business income and expenses.  However, most of our long time clients find it more convenient to mail or drop off their information.  We even have tax information mailed to our office as far away as Florida, New Mexico and Alaska! While we have extended tax hours during the filing season, our East Aurora office has a drop slot if you can’t make it to Philipps and Brooks during that timeframe.  

 What are your fees?

Please know that we pride ourselves on exceptional service at what we believe to be reasonable rates.  Research has determined that our tax preparation fees are comparable to other national chains and franchises.  In certain circumstances, we have found that our rates are even less expensive than the chains.  For services other than tax preparation, the fee is based on accrued time and hourly rates.  We are  always happy to provide you with an estimate before any actual work commences.

Are you accepting new clients?


For various reasons, I haven’t filed a tax return in a few years. What should I do?

Of course, our goal is to have all clients remain current with both the IRS and NYS. However, if it your tax delinquency is what  brings you to Philipps and Brooks, you will meet with a staff member to analyze your situation. This will include the severity of your liability to determine strategy  There have  even  been occasions where the taxpayer is due a refund!  However, if it is more than three years past the date your tax return was due, the statute of limitations  applies and you will no longer receive that refund. 

I was recently married and have not yet contacted the Social Security Administration regarding my name change.  Will this affect my income tax filing?

While it would not have a few years ago, the IRS now will withhold a refund if you have not informed Social Security of your name change.  You will receive a notice from the IRS stating that the taxpayer identification number (SS#) does not match  the reported name of the taxpayer. You will not receive your refund until you make the change.  To save yourself some inconvenience, call for a new Social Security card as soon as you get back from the honeymoon.

I just received a letter from the IRS (or New York State).  Am I in trouble?

There are many reasons taxpayers will receive letters from the IRS/NYS and all of them are not negative.  You may hear from one of the institutions regarding a taxpayer identification number issue (see above) or because a required form became detached from your return.   Often the IRS will propose a “change” to your return thereby revising the final numbers.  These proposed changes are not always correct as the IRS can overlook certain items such as an estimated payment made the prior year.  In all cases, mail, fax or drop off a copy of your notice. We will review and analyze correspondence to determine the proper course of action. Sometimes just a phone call or a letter can rectify the matter.