Frequently Asked Questions
How do I make an estimated payment?
Please review your tax return instructions for estimated payment requirements. Estimates are generally due April 15, June 15, Sept 15 and Jan 15. It is your responsibility to make these payments either by check or the IRS Direct Pay webpage unless your tax return instructions indicate that payment was already scheduled to auto-debit. If you would like a walkthrough on how to make a payment on the IRS website, please click here for a short video. State agencies often have electronic payment methods available.
Note: Please upload a copy of your receipt to your Liscio client portal.
When do I need to issue Form 1099-NEC?
The basic rule is that you must file a 1099-NEC whenever you pay an unincorporated independent contractor- that is, an independent contractor who is a sole proprietor or member of a partnership or LLC – $600 or more in a year for work done in the course of your trade or business by direct deposit or cash. Payments for rent expense also require filing Form 1099. (You have no duty to report payments you make electronically as described below.)
Some business-related payments do not have to be reported on Form 1099-MISC, although they may be taxable to the recipient. These include:
- payments to corporations (except for incorporated lawyers and payments to doctors for professional services to a business)
- payments for merchandise, inventory, telephone, freight, storage, and similar items, and
- payments made through credit card (the credit card company reports these payments already)
Where is my refund?
How long will it take to process my refund?
Here are common refund times:
Direct Deposit: 1-3 weeks
Check in Mail: 1 month
Direct Deposit: 3 weeks
Check in Mail: 2 months
What does filing an "extension" mean?
• An extension is a form filed with the IRS to request additional time to file your federal tax return. The extension period is six months, which extends the due date for submitting your final returns from April 15 to Oct. 15. In some states, filing an extension with the IRS will automatically extend the time to complete a state income tax return.
• Filing an extension grants you additional time to submit your complete and accurate return, but we still need to estimate whether you will owe any taxes and pay that estimated balance by April 15.
• Extending your return allows us more time to prepare your tax return to ensure the filing of an accurate tax return. In many cases, you may still be waiting for additional information (e.g., Schedule K-1, corrected 1099s, etc.) to complete your return.
Am I more likely to be audited if I extend?
• Extending will NOT increase your likelihood of being audited by the IRS.
• It is better to file an extension rather than to file a return that is incomplete or that you have not had time to review carefully before signing.
Should I do anything differently if I am filing an extension or “going on extension”?
• No, you still should give us whatever information you have as early as possible or as soon as it becomes available.
• Expect to pay any anticipated taxes owed by April 15. You still need to submit all available tax information to us promptly so we can determine if you will have a balance due or if you can expect a refund.
• If you are required to make quarterly estimated tax payments, your first quarter estimated tax payment is due April 15. We may recommend that you pay the balance due for last year and your first quarter estimated tax payment for this year with your extension.
• If you are anticipating a large refund, we will likely try to get your extended return completed as soon as possible once all tax information is available. We may also want to discuss tax planning opportunities with you so that in future years, you don’t
give the IRS an interest-free loan!
Is there anything I can do to avoid filing an extension if I know I am missing some information now?
• If you know you will be waiting until the last minute for one or two documents, you may be able to minimize the chance of having to file an extension by providing all other available documents to us as soon as you receive them. By doing so, we can prepare a draft return for you to review and discuss in advance. And we may be able to add the missing piece of data or last-minute information and complete your returns by April 15.
How do I adjust my withholding (W-4)?
The IRS provides a withholding calculator on their website. We would also be happy to assist our clients with withholding adjustments after the busy April 15th tax filing deadline.
IRS sent me a notice, what do I do?
Please visit the IRS Ten Things to Know about IRS Notices and Letters webpage. All our client packages include up to six hours of audit assistance. Please upload your notice (all pages) to your Liscio client portal so we can assist.