David V. Fazio, E.A. provides a wide range of services to individuals and businesses in a variety of industries. I strive to meet each client's specific needs in planning for the future and achieving their goals in an ever-changing financial and regulatory environment. Our professional services include:
As an Enrolled Agent, I specialize in preparing tax returns for individuals and small businesses. My clients range from recent graduates to the self-employed, investors and owners of rental real estate.
There are no "small clients" in my business and no two clients are alike. I don't hand out "tax organizers" for you to fill out. I believe that only through a strong interview can I get a true grasp on a client's tax situation. An interview need not always be a face-to-face meeting. In today's electronic age of e-mail, fax and secure file transfers I have a growing number of clients that are skipping the annual trek to my office and sending their tax data to me electronically. Then, as questions arise we communicate via email or telephone.
For new clients, I offer a complementary review of your 3 most recent returns. If deductions or credits were overlooked, the return may be amended. The fee to correct the return is determined by the amount of time needed to prepare the necessary forms for the IRS and state.
As a tax client, I encourage you to call or email my office throughout the year when you have a tax question or there is a change to your tax situation such as:
- Separation or divorce
- New dependents
- Significant changes in income (winning the lottery, facing unemployment, etc.)
- Purchasing your first home
- Refinancing an existing mortgage
- Purchasing rental property
- Retirement or disability
- Inheriting property
- Starting your own small business
- Children entering college
- Supporting another family member
- Your children or parents move in with you
- Making gifts of more than $13,000 per year
- Facing a short sale, bankruptcy, loan modification or cancellation of a debt
- Withdrawing money from your retirement account before you reach age 59 1/2
- Selling investments
Small Business Consulting
As a small business owner myself, I know that the employment and income tax and payroll rules are complex to say the least. I strongly encourage clients who are thinking about starting their own business to meet with me to discuss the various tax aspects of their new endeavor including:
- Recordkeeping requirements
- Using a vehicle for business purposes
- Setting up an accounting system
- Obtaining a business account
- Choice of entity (sole proprietorship, partnership, corporation or LLC
- Choosing a fiscal or calendar year
- Estimated tax payment requirements
- How your business is taxed
- Registering and collecting sales tax
- Establishing a payroll and choosing a payroll service provider
- Why and when you need to issue 1099-MISC forms
- Insurance and licensing requirements
- Considering a home office deduction
- Depreciating or expensing fixed assets
- What information I will need in order to complete your business tax return
It all starts with a letter. It has the dreaded 'I.R.S.' in the corner. They want something but you don't know how to proceed. Most letter fall into these categories:
- The IRS thinks you made an error on your return. Maybe you did, maybe you didn't. These letters (known as CP-2000 notices) are computer generated and occur when the IRS computers cannot reconcile your tax return to the income documents they have on file (W-2s, 1099s, etc.). Many of these notices are incorrect (perhaps you reported the same income on a different line or the bank used your Social Security Number on someone else's account). Regardless of whether they are correct or not, a response is required.
- The IRS is auditing you. These can be completely random or something on your return got 'flagged' for being outside the norm. You may be asked to mail in documents or attend the audit in person.
- The IRS claims you haven't filed a tax return. If this is the case, the IRS will make one for you. You won't like it since it allows no deductions (other than the standard deduction), no dependents and no tax credits you may qualify for.
- The IRS wants their money. If you can't pay in full there are other alternatives such as a short-term extension of time to pay in full or a monthly payment agreement. Note that these collection letters start out polite and as time goes by they will become more aggressive and threaten to garnish your paycheck, levy your bank accounts and place a tax lien on your property.
As an Enrolled Agent, I can represent you before all administrative levels (Examinations, Collections, Appeals and Office of the Taxpayer Advocate) of the Internal Revenue Service and Massachusetts Department of Revenue. Unless you are issued a summons, you generally do not have to speak with an IRS agent or attend an audit when I represent you.
My IRS representation services include:
- Communication with IRS regarding CP-2000 notices and other letters
- Audit defense
- Filing of back tax returns
- Negotiation with IRS Collections Devision for payment terms
- Ending wage garnishments and rescinding bank levies
- Requesting audit reconsideration with IRS Appeals Division
- Forwarding your case to the IRS Taxpayer Advocate when the IRS doesn't follow their own rules or you are facing and undue financial hardship
IRS letters always come with deadlines; some are as short as 10 days. It is imperative that you contact me as soon as you receive correspondence from the IRS or Department of Revenue if you want to be represented. Note that if you are faxing or emailing IRS notices to me, be sure you send me both the front and back pages of the letter.
Remember that these problems will not go away by themselves. Acting quickly is necessary to preserve your right to appeal a decision the IRS has made that you disagree with.