One of the worst fears of any taxpayer is to receive a notice from the IRS that they are being audited. But having an audit done doesn’t necessarily mean you did something wrong. Plus, only a fraction of taxpayers are chosen for audits each year. For example, in 2022, the IRS audited about four income tax returns out of 1,000.

That said, if you do receive an audit notification, you can take several essential steps to ensure that your audit goes smoothly. The best thing you can do is understand the process and take proactive steps to prepare.

Here is what to do if the IRS audits you.

What Happens When You Get Audited by the IRS?

First things first, don’t panic! It is vital that you understand the audit process and prepare for it.

The most common type of IRS audit is a “correspondence audit,” which means most of the process is done via mail. The IRS will send you a letter detailing why they are auditing you,...

Let's be honest; taxes are confusing. Tax law often changes, and knowing what you're eligible for can be confusing. In most cases, people miss tax deductions simply because they don't know about them.

As a Colorado Springs tax accountant, clients are often surprised at the deductions they can take. At Bennett CPA, I work with clients to ensure they are taking advantage of all the deductions they are eligible for. This is the best way to lower your tax liability and maximize your refund.

Here are a few of the most common deductions that people often overlook.

If you're a Colorado Springs homeowner, you may be asking, "Is home remodeling tax deductible?" The answer can be complex, but here are some things to consider when deciding if your remodel qualifies for a tax deduction. It really depends on the type of repairs you're doing and the way you're tracking your expenses.

As a Colorado Springs CPA, Merrill Bennett is your go-to tax expert. Bennett will help you understand the details of home remodeling tax deductions and how to best track your expenses to maximize your deductions. You never have to feel overwhelmed or stressed about tax season when you have Bennett CPA on your side.

Keep reading to learn more about home remodeling and tax deductions!

Taxes are a complicated issue. For business owners and self-employed individuals, knowing when and how much to pay can be tricky. In the United States, quarterly estimated taxes are due on April 15th, June 15th, September 15th, and January 15th of each year. In short, these quarterly tax payments are required for individuals who will owe more than $1,000 in taxes for the year. But let's take a closer look.

Bennett CPA is your tax expert in Colorado Springs. Merrill Bennett is a certified public accountant who can help you determine if quarterly tax payments are required for your individual or business situation. With years of tax experience for individuals and businesses, Bennett CPA can help you understand the complex world of taxes.

Keep reading to learn more about why quarterly tax payments may be required for you.

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It's that time of year again! The holidays are here and with them come bonus payments. Bonus payments, or bonuses, can be a welcome source of extra income during the holidays. But before you make any plans for what to do with the extra cash, it's important to understand how bonus payments are taxed.

At Bennett CPA, Merrill Bennett has years of experience filing business and individual taxes. As a CPA in Colorado Springs, you can have the confidence that your taxes are completed accurately and on time. Plus, Bennett CPA is here to answer your questions about taxation all year round.

Let's take a look at what bonus payments are and whether they get taxed.

Changing your name with the IRS is an essential step in managing your taxes, especially if you've gone through a legal name change or a legal business name change. If you've gone through a marriage, divorce, or another event that necessitates a name change, you'll want to ensure the IRS is aware of this. Therefore, you may be asking, "How do I change my name with the IRS?" Here is what you need to know about your taxes, updating your name, and how to make the change with the IRS.

At Bennett CPA, Merrill Bennett helps individuals and small to medium-sized businesses with their taxes. As a certified public accountant in Colorado Springs, Bennett has years of experience in the tax industry to help with your needs. By working with Bennett CPA, you can have the peace of mind that your taxes are being handled by a professional who is up to date with the latest tax...

Filing taxes can be a stressful process, especially if you're filing for the first time. You probably have heard people complain about how complicated or overwhelming taxes are to file. But don't worry — it's not that bad! Remember that millions of Americans file taxes each year. So while you may be feeling intimidated, it's actually a much easier process than it may seem. Here are 10 tips for filing taxes for the first time!

At Bennett CPA, Merrill Bennett is a certified public accountant in Colorado Springs with years of tax experience. No matter if you are in need of filing your personal taxes or business taxes, Bennett CPA will file your information accurately and on time. As a resource for all of your tax questions, Bennett is here to help you understand the filing process and become prepared for tax season.

Ready to learn the best tips for filing taxes for the first time? Keep reading...

As a small business owner, you're always looking for ways to save money. And when it comes to taxes, there are a number of hacks that can help you lower your tax bill. For example, did you know that you can deduct the cost of business lunches? Or that you can write off the cost of new equipment? In this blog post, we'll share some of our favorite small business tax hacks. Whether you're a sole proprietor or a corporation, read on to learn how to save on your taxes.

Merrill Bennet is a certified tax professional serving the Colorado Springs community. He founded Bennett CPA to provide quality and affordable accounting services to small and medium-sized businesses. With Bennett CPA, you never have to face the complexities of small business taxes alone.

1. Review your expenses and see where you can cut back.

When it comes to deductions, small business owners have a lot of options. But that...

Tax season is stressful. However, if you are getting a refund back, you may be looking forward to filing your taxes. Each year, one of the very first questions you have after filing your taxes is, “how long do tax refunds take after being accepted?” The Internal Revenue Service, or IRS, says taxpayers usually get their refunds within 21 days of filing. However, the answer to this question is not so simple. To answer the question, “how long do tax refunds take to process?”, take a look at some of the factors that will impact how long it takes for you to get your tax refund back.

At Bennett CPA, Merrill Bennett is on a mission to provide affordable, accessible, and quality tax services in Colorado Springs and beyond. From individual tax preparation to business tax planning, Merrill Bennett provides customized tax solutions. At Bennett CPA, you will receive comprehensive...

If you are like most people, you may be wondering, “how do I maximize my tax return?” While filing your taxes is a tedious process, it is crucial to pay attention to the way you file your return. How you file your taxes plays a large role in how much you receive back as a refund. It is important to pay attention to what you report on your tax return, such as tax credits, deductions, and dependents. Make sure you take advantage of every available tax strategy to reduce your tax liability, as this is the best way to boost your tax refund.

At Bennett CPA, a certified public accountant in Colorado Springs, Merrill Bennett has extensive experience working with individuals and small businesses to file their tax returns. With a thorough understanding of tax preparation, planning, and consulting, Bennett provides affordable, accessible, and quality tax services across southern Colorado. With individual or business tax...

Running a business is challenging. On top of running day-to-day operations, managing employees, keeping track of inventory, and communicating with customers, you also have to file business taxes. For any small business owner, this can be extremely overwhelming. Keeping up with your business’ tax records requires constant maintenance. By staying on top of your taxes, you have the best chance to simplify your tax filing and save money.

At Bennett CPA, Merrill Bennett has extensive experience simplifying business taxes for small and medium-sized businesses. As a certified tax professional in Colorado Springs, Bennett CPA offers tax preparation, planning, and consulting services aimed at reducing your business tax liability. Merrill Bennett can provide your small business with tax expertise so you can better understand the financials of your business.

Business taxes are complicated, but with these tax tips for small business owners, you will know how to reduce your tax liability to make filing taxes...

While the Employee Retention Credit (ERC) was ended in 2021 by the Infrastructure Investment and Jobs Act, businesses can still retroactively claim the tax credit on their 2021 tax returns. As a business owner, it is crucial to be aware of these changing tax laws, but it can be difficult to keep track of the ever-changing tax regulations on top of running your business from day to day. At Bennett CPA, Merrill Bennett is a professional tax preparer located in Colorado Springs. As an experienced certified public accountant, Bennett can provide you with tax knowledge so you can better understand the particulars of your business taxes. When it comes to filing your taxes this year, here is what you need to know about the Employee Retention Tax Credit.

What is the Employee Retention Credit?

The ERC is a refundable tax credit for a percentage of qualified wages that businesses or tax-exempt organizations paid to employees.

The ERC was first introduced by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. The CARES Act was...

The IRS has started to accept and process 2021 tax returns as of January 24th, 2022, for individual tax return filers. If the thought of filing your taxes leaves you feeling uneasy and stressed, do not worry because many other people feel the same way. Tax season is a stressful time for many people. Taxes can often be complicated and time consuming, but you do not have to struggle through your tax return alone.

At Bennett CPA, Merrill Bennett is on a mission to provide affordable, accessible, and quality tax services to individuals and small to medium-sized businesses across southern Colorado. With years of experience as a certified public accountant, Bennett understands how frustrating it can be to file taxes. His goal is to alleviate the confusion, the struggle, and the doubt surrounding tax season. This is why Bennett CPA has put together a list of important tax information for the 2022 tax filing season,...

College is expensive, which means you’re probably like most students who use financial aid to finance their degree. There are many types of financial aid for students to use for their education, and how you use your financial aid may have an impact on what is reported on your federal tax return. As such, you may be wondering if your financial aid is taxable.

At Bennett CPA, Merrill Bennett is a certified public accountant in Colorado Springs with years of tax experience and knowledge. While taxes can be complex and confusing, Bennett strives for clarity, efficiency, and simplicity. This is why Bennett CPA is here to help clarify whether financial aid is taxable and what this means for your taxes.

What is Financial Aid?

Financial aid refers to the money that helps you pay for your higher education. Specifically, this money can come from federal, state, institutional, and private sources to finance your education. Some types of financial aid include:

• Educational...

At Bennett CPA, Merrill Bennett is an expert tax professional in Colorado Springs with the goal of providing affordable, accessible, and quality tax services. With years of experience, Bennett navigates the complexities of tax compliance to make filing taxes as easy as possible. If you are filing taxes after marriage or filing jointly for the first time, Bennett CPA is able to clarify any questions and help you and your spouse with the tax preparation process.

If you are planning on getting married or just tied the knot, now is the time to start thinking about your taxes. While in the midst of planning a married life with your partner, it is important to be aware of the financial changes that come with saying “I do”. Your marital status is determined by your status on December 31st, so as tax season approaches, here are some important tips to know as you prepare to file taxes.

Change of Name and Address

Once married, your name may change. In this case, it is very important to...

Tax season can be extremely stressful for both individuals and businesses, and tax regulations seem to be convoluted and change often. As such, it is sometimes difficult and overwhelming to keep up with the requirements for filing taxes, such as the form you should use to file. At Bennett CPA, Merrill Bennett is on a mission to provide affordable, accessible, and quality tax services to individuals and businesses across Southern Colorado. With years of experience, Bennett is an expert tax professional here to help clarify the differences between the following tax forms: 1040 and 1040-SR.

Starting in the 2018 tax year, 1040-A and 1040-EZ forms are no longer used. Rather, the only forms that remain in use are Form 1040 and Form 1040-SR, but you are still able to use the 1040-A and 1040-EZ forms to file taxes in the years previous to 2018. For current taxes, the following forms are available.

1. Form 1040

Form 1040 is a tax form used for personal federal income tax returns. This form...

Recently, Congress passed the Build Back Better Act, which includes a range of budget provisions, including tax changes. It is important to be aware of changing tax laws, but it can be difficult to stay on top of ever-changing regulations. At Bennett CPA, Merrill Bennett is an experienced and expert tax professional in Colorado Springs who understands these amended laws well. Bennett is able to provide you with the knowledge so you can stay informed and better understand the particulars of your taxes. Here are three of the recent tax changes included in the Build Back Better plan to be mindful of when it comes time to file.

1. Child Tax Credit

Under the Build Back Better plan, the child tax credit enacted under the...

At Bennett CPA, I am dedicated to providing premier tax services to individuals and businesses throughout Colorado Springs. As an experienced CPA, I understand how the complexities of taxes can oftentimes be overwhelming. In order to relieve the stress that taxes often evoke, I founded Bennett CPA with the mission of offering clear, efficient, and honest tax help. With my combined expertise and experience, my goal is to ensure that my clients feel peace of mind when it comes to their taxes..

If you have ever tried doing taxes on your own, then you are most likely aware of how frustrating it can be. The complex tax laws and policies can oftentimes feel like another language with the different terminology used. While many individuals and businesses attempt to take on filing taxes on their own, hiring a tax professional poses many benefits. As a CPA, I have both the experience and accreditation to ensure that your taxes are completed...

Are you getting ready to file your taxes? If so, you may be wondering what all of those tax terms mean. Don't worry! You're not alone. Each tax season, many people get confused by tax jargon. After all, tax law isn't exactly the easiest to understand. Luckily, I'm here to help make understanding your taxes easy! In this blog post, we will explore 10 common tax terms in easy-to-understand language. By understanding these terms, you will be able to file your taxes with confidence!

Without understanding these terms, filing for taxes may feel like an impossible task. As a certified public accountant in Colorado Springs, I know firsthand how confusing taxes can be. That is why at Bennett CPA, simplicity is one of my core values. I am committed to simplifying the complexities of taxes to help you better understand and be prepared for filing. With my personalized tax services, I will partner with you to ease any confusion and file your taxes correctly and on...