Frequently Asked Questions

How do I save on my taxes?  Here are some quick thoughts on what may be available:

1. Max out your 401(k) plan versus banking on potential stock market gains.

2. Put more money toward tax-deferred retirement plans. 

3. If you contribute charity, contribute appreciated assets instead of cash.

4. In any one year there may be certain tax credits available.

How can I take advantage of gifting rules?   How Much is the Gift Tax Limit for 2023? The gift tax exclusion for 2023 is $17,000 (it was $16,000 in 2022). As a result, you can give up to $17,000 to as many people you want in 2023 without having to worry about paying the federal gift tax.

What entity should I choose for my business? Here are some websites which explain some of the general choices.  The choice for you will depend on your specific circumstances. Generally, we recommend setting most entities up as an LLC as this type of entity is the most flexible in being changed to be taxed as other entities as your needs change.

1.  https://www.venable.com/insights/publications/2021/06/choice-of-entity-basics-and-other-suggestions

2. https://www.thetaxadviser.com/issues/2015/mar/tax-clinic-02.html

1. https://www.mitaxcpa.com/blog/reasonable-salary-for-s-corp/
2. https://www.collective.com/blog/money-management/freelancers-guide-to-paying-yourself-a-salary-from-an-s-corporation/
3. https://www.hourly.io/post/owners-draw-or-salary-s-corp

1. https://borakoveosman.com/

1. https://www.actec.org/estate-planning/inheritance-estate-settlement-distributions/
2. https://www.unitedway.org/my-smart-money/immediate-needs/a-family-member-has-died/immediate-steps-to-take-when-a-loved-one-dies

1. You can fill out a form on our website.  You can also send an email to office@sorgecpa.com or call 608-221-2253 to have our support staff complete a prospective client form.  You will receive the form and a scheduling link where you can set up a video chat in order to discuss your needs.

Some additional bullet points to address frequently asked questions regarding our services:

1. Our protocol includes a brief video or phone meeting in order to gain an understanding of your needs and answer your questions.
2. After the meeting I will send a welcome letter which includes the steps for getting set up on our system along with colleagues who will provide assistance.
3. The cost varies based on complexity and communication requirements.
4. Our minimum fee is $350.  We complete many returns for $500.  The range is from $350 to $5,000 from straightforward to the most complex. 
5. A $100 retainer is required which we hold while a client.
6. If you require tax planning services these are generally provided separately from tax preparation services at a rate of $280 per hour.
7. Questions are answered and tax planning is done throughout the year.
8. In-person meetings are available before and after tax season.
9. We highly recommend Tax Caddy (free, secure online application and smartphone app) for sharing and keeping documents.  You own and control Tax Caddy, you just give us access to it so that we can use your documents in order to prepare your tax return and answer questions.  All of your documents and tax returns are stored here.
10. We communicate any questions we have as we complete your tax returns.
11. The outline of our services above improves our turn-around time.  Our goal is to have your returns completed within 14 days.  We can generally meet this goal when complete documents are delivered to us by mid-February.
12. As we get later into the tax season, after March 1st, our turn-around time will increase to at least 4 weeks, and could be as many as 10 weeks.  
13. We file extensions automatically, when appropriate, at no additional cost, if we need a bit more time to get returns completed and delivered to you.  For tax information submitted by April 15th we complete the vast majority of returns by April 30th as the number of returns received daily after April 15th declines quite significantly.
14. Notify us if you expect to owe and if you will be providing your complete documents after March 1.  We can send voucher in order to make an estimated tax payment so as to avoid penalties and interest for an extended return.
15. If you are to receive refunds there is no need to be concerned about late filing as we will file an extension on your behalf.
16. We collect and process tax information throughout the year.
17. If you expect to owe significant tax when your tax returns are filed we highly recommend making estimated payments before April 15th in order to cover your estimated tax liability which will result in avoiding penalties and interest.
18. All returns are reviewed by a Certified Public Accountant or Enrolled Agent before finalization.

1. We highly recommend using Tax Caddy.  We will help you get set up on this application once you decide to become a client.  This is a free program which you own and provide us access to.  You can simply upload your electronic documents.  You can take photographs with your cell phone from within the application.  We send all documents to you, including the automated tax organizer, through Tax Caddy.
2. You can also deliver physical documents on paper.