Frequently Asked Questions

Here are the answers to some of the most Frequently Asked Questions our firm receives.

IMPORTANT NOTE: The information found on this website is general in nature and may not apply to the reader's situation. Therefore, the reader should not rely on the information on this website alone. For specific advise, please call us at Keener Consulting, Inc. Thank you.

Q. What services do you provide?

A. Mary Wilson Keener, PC prepares all tax returns including individual, corporation, LLC and LLP, non-profit, estate and trust, partnership, payroll, sales tax, property tax, and other taxes. We also offer training for using Quickbooks. Mary Wilson Keener, PC offers bookkeeping services along with tax planning. We offer financial planning services in analyzing investments and preparing for retirement.

Q. I would like to know the value of my business. How can I determine this?

A. There are many reasons that business owners need to know the value of their interests. These include the purchase or sale of the business, buy-sell arrangements, succession planning, shareholder disputes, marital dissolution, estate and gift tax planning, to name a few of the most common. We are ready to assist you in determining the value of your business.

Q. Can you help me with my investments?

A. Mary Wilson Keener is affiliated with Money Concepts, a wealth management and financial planning firm. She can set up an appointment to determine your goals and the strategies that you will need to reach those goals. If you are pleased with her recommendations, she will assist you in the process of transferring your accounts to concur with those strategies.

Q. What is all this that I hear from your firm about "wealth accumulation and retention?" Is there really any thing that we can do these days?

A. The answer to your question is an unequivocal "YES". Obviously, the markets have been tough on all of us over the last few years. But we have strategies available to us still that can get you on the road to developing a wealth base, and then in helping you to develop that base and RETAIN IT! Please give us a call and we will set up a time to discuss this.

Q. It seems like everyone and his brother (except me!) has a retirement plan! Can you explain the various plans available?

A. A good retirement plan can be an essential weapon in your arsenal for accumulating wealth. Every business owner with taxable income from some source (whether from the business or not) should have a retirement plan to help defer taxes and to accumulate savings that are tax advantaged! Mary Wilson Keener can help design the PERFECT plan for your business and your circumstances. Give her a call so that you can discuss this!

Q. Do I need to visit your office to have my taxes prepared?

A. It is not necessary to visit our office. Many clients utilize the mail or express services to send their information to us. For new clients, we encourage a meeting so that we can discuss your unique tax situation.

Q. What size clients do you serve?

A. We provide services to individuals, home-based businesses, professionals, and small businesses from start-ups to mid-sized.

Q. Can I deduct student loan interest?

A. Since personal interest is generally non-deductible, you must meet several tests: You must be the person liable on the debt and the loan must be for education only. For 2007, your income can't exceed $140,000 on a joint return or $70,000 on a single return; married couples filing separately can't deduct. You can't deduct if you're claimed as a dependent.

Q. Do we service clients outside of Friscos?

A. Mary Wilson Keener, PC services clients in many other areas. We have clients in Frisco, Plano, McKinney, Dallas, and in other areas of the Dallas-Fort Worth metroplex. We also serve clients outside of Texas and we are able to prepare returns in all states.

Q. How do you charge for your services and how does your cost compare to other tax preparation firms?

A. We charge by the hour. We can give you a quotation of expected costs. When providing services, if we can help you reduce your preparation time, we will tell you how. Our charges are in line with other quality firms that service the same types of clients.

Q. Do you work with Start-up Companies?

A. Yes! Many of my clients are just starting in business. I will lead you through the necessary governmental forms. Through our networking, we can also assist in finding you other necessary professionals to deal with (lawyers, insurance agents, mortgage brokers, etc.) throughout the Dallas-Fort Worth metroplex.

Q. I want to start a new business. Can you tell me which type of business I should form?

A. Yes. When setting up a new business, it is crucial to set up the right type of entity, such as corporation, S corporation, Limited Liability Company, limited liability partnership, partnership, sole proprietorship, etc. Our consulting services will help you form the right type of business based on your unique situation with consideration given to liability issues and tax advantages.

Q. How are Limited Liability Companies (LLC) taxed?

A. A single-owner LLC defaults to being taxed as Sole Proprietorship. Income/loss from the LLC is reported on the owner's personal income tax return. A multi-member LLC defaults to being taxed as a Partnership. A Partnership tax return must be filed. The profit or loss is then reported on the owner’s personal tax return. Any LLC can elect to be taxed as a corporation, either C-Corporation or S-Corporation. To do so, one must file an election within 75 days of creating the LLC.

Q. Should I keep my old tax returns? If so, for how long?

A. Yes, you should keep your old tax returns for at least 7 years. When a return contains information pertaining to the basis of property owned, it should be kept until that property is sold. One of the benefits of keeping your tax returns from year to year is that you can look at last year's return while preparing this year's. If you do throw out an old return you may fill out form 4506, Request for Copy or Transcript of Tax Form, and send it to the IRS service center where you filed your return.

Q. What pieces of paper do I need to keep in order to do my taxes?

A. Keep detailed records of your income, expenses, and any other information you report on your tax return. A good set of records can help you save money when you do your taxes and will be a trusty ally in case you are audited.

Q. What is the standard mileage rate?

A. The standard rate is 58.5 cents/mile beginning July 1, 2008.

Q. What is the annual gift tax exclusion?

A. The annual exclusion is $12,000 for 2008 per donee, with an annual maximum of $24,000 per donee applicable to spouses who utilize gift splitting. Additionally, there is an unlimited exclusion for payments of tuition and medical expenses.

Q. When should I give you my tax information?

A. You should bring all your information in as soon as you have it all together. We will make appointments beginning February 1 each year.

Q. What do I need to do to start a new business?

A. Typically, most people will go to their lawyer first, get the business set up and then contact an accountant. I would rather that you contact us at the beginning. There are many different kinds of companies and we can help you select the best one for the kind of company that you will be setting up. Then we will continue to help you with payroll, tax returns, monthly accounting, and financial statements to whatever degree you need.

Q. Should I use a lawyer or an accountant to incorporate my business?

A. Although lawyers can get the paperwork together to make your incorporation happen, they might not know all the different tax laws that can apply to the different kinds of incorporations. Therefore, we suggest you see an accountant first to find out exactly which kind of incorporation you should choose. Then have your lawyer finish the paperwork.

Q. Are QuickBooks or Peachtree good products?

A. QuickBooks and Peachtree can help you with your small business accounting, but they cannot think for you. The software has to be set up properly from the beginning or you will have problems. Wefind that by setting it up yourself, it can cost you more in accounting fees because it takes longer for us to resolve any errors that might occur. We advise that if you are going to use one of these products you have us set it up and train you on how to use it for your particular business..

Q. By using QuickBooks, can I reduce my fees?

A. Our experience shows us that if you know something about accounting AND your computer software is set up properly from the beginning, it is possible that we won't need to spend as much time on your accounting. If the initial set up is not done properly, we end up spending more time 'cleaning up' the errors than if we had just entered the detail from the beginning.

Q. Do I need a Certified Public Accountant or is an accountant okay?

A. When searching for bookkeeping and tax services, it is of prime importance that the professional who works with you directly has the experience and knowledge to perform the tasks required. A CPA certificate does not guarantee familiarity with tax issues and does not indicate skill with operating Quickbooks. That is the reason each CPA must update their knowledge each year with 40 hours of continuing professional education in their particular area of expertise. A bookkeeper without CPA certification is not held to this standard. Therefore, when you use the services of a CPA you have some guarantee that they have passed certain levels of knowledge and that they are continually studying. Many CPA firms do not specialize in bookkeeping and tax services, but Keener Consulting CPAs do and we have a certified Quickbooks ProAdvisor on staff.

Q. Where can I get additional information about IRS e-file?

A. You can visit the IRS website at www.irs.gov - or feel free to call our offices to ask us questions as well.

Q. What do I gain by using IRS e-file?

A. Accuracy! Security! Electronic Signatures! Proof of Acceptance! Fast refunds with direct deposit! Electronic Payment Options! Federal/State e-file! Only IRS e-file offers these advantages.

Q. What is an Authorized IRS e-file Provider?

A. An Authorized IRS e-file Provider is a tax professional or firm who is accepted into the IRS electronic filing program. One type of Authorized IRS e-file Provider is an Electronic Return Originator (ERO). An ERO is a person or firm that taxpayers entrust with tax information for the purpose of filing income tax returns electronically to the IRS. Keener Consulting is an ERO.

Q. What is the Personal Identification Number (PIN)?

A. The PIN allows you to personally sign your electronic tax return using a five-digit number. The PIN serves as your signature on your tax returns. I will have this form all filled out for you when you come to pick up your returns or they are mailed to you. All you need to do is sign the form for our files and then I am able to e-file your return.

Q. Do I really get my refund faster?

A. With IRS e-file you get it back in half the usual time. It's even faster and safer if you have your refund deposited directly to your bank account in as few as 10 days. Ask the Authorized IRS e-file Provider for the estimated date of deposit.

Q. Do I have a greater chance of getting audited by the IRS if I use IRS e-file?

A. No. The chance of an audit of an e-filed return is no greater than with a paper return.

Q. How do I know that the IRS really has my return?

A. The IRS notifies your Authorized IRS e-file Provider within 48 hours of transmission that your return information was received. If the IRS detects any errors, it sends a message back to our firm indicating the error. Our firm will correct the error and notify you to let you know what the error was. We will then retransmit your returns to the IRS. The IRS sends a notice that the return has been accepted. We then mail you a letter showing the date it was accepted and you can keep this as confirmation that the return was filed and when.

Q. If my return is electronic, how do I sign it?

A. The most convenient way for you to sign your electronic return is to use a Personal Identification Number (PIN). It's completely paperless! I have you sign a document that shows that you agree with the numbers in the return and is allowing us to e-file your return for you. The signed forms stay at my firm for four years.

Q. Do you offer free business consultations?

A. Yes, Mary Wilson-Keener offers a free thirty minute consultation for businesses. The consultation is to gather information about you and your business, while you find out more about our firm. You can usually get answers to a few questions at that time and determine if our services match your needs. We request that you bring last year's income tax return (if applicable) and anything else that is of concern.

Q. I prepare my own tax return, why use your services?

A. Many times you are correct and you can prepare and file a return. But did you take all the deductions? Did you take the available tax credit? Did you go to a tax course in the past 12 months? We find that many returns can be self-prepared but many are lacking in all the deductions that can be taken.

Q. How long should I keep my tax records?

A. We recommend keeping your tax records for seven years. However, documents in support of the purchase of a depreciable asset should be kept until the asset is disposed of and documents in support of loans and mortgages should be kept until the loan or mortgage is liquidated

Q. How can I contact the IRS about my tax return?

A. You can call the IRS at its toll-free line at 800-829-1040. To be ready to respond, you should have your Social Security number, your filing status and your refund or payment due amounts. For tracking your refund, allow between 4 to 6 weeks before you contact the IRS.

Q. How can I obtain a copy of my tax return?

A. Of course, we will supply you with a copy and if you lose it, we will furnish you with another copy. If we did not prepare the return, and for some reason you do not have a copy in your possession, you need to file form 4506, Request for Copy or Transcript of Tax Forms, with the IRS service center where you filed your missing return.

Q. In a divorce who is entitled to the child dependency exemption?

A. The parent who had custody of the child for the greater part of the year is generally treated as the parent who provided over one-half of the child's support and will claim the exemption if other tests are met. Custody is usually determined by the amount of time spent at the home of the parent.

Q. What is the most tax efficient way to save for my children's education?

A. The educational savings area is very complicated. I recommend that taxpayers seek professional assistance. Although a Section 529 plan, under the 2001 Tax Act, is an extremely flexible and tax effective plan, there are other plans to be considered. Also when considering any educational savings plan, consideration should be given to the impact on financial aid qualification requirements.