Find answers to some of the most common questions about our tax preparation and accounting services, from personal and business returns to filing and deadlines. We’ve tried to cover the questions our clients ask most, but every tax situation is a little different. If you don’t see your question below, or if you’d like to talk through your specific situation, feel free to contact us directly — we’re happy to help.
Yes, NSO and Company has been preparing individual and business tax returns since 2010 for clients in central Indiana and beyond. We work with individuals, small businesses, and a variety of tax situations to help ensure returns are prepared accurately and efficiently.
NSO and Company combines years of experience with personalized service to help individuals and businesses prepare their taxes accurately and on time. We take the time to understand your situation, answer your questions, and look for opportunities to help you maximize your tax savings, while staying compliant and making the process as smooth as possible. Our clients also value our fair pricing and the confidence that comes from working with a trusted local tax firm near you.
NSO and Company electronically files tax returns for our clients, so in most cases you do not need to mail the return yourself. We handle the filing process for you and let you know if any additional signatures or documents are needed.
NSO and Company can help your business stay organized, compliant, and financially prepared by providing experienced tax, bookkeeping, and payroll support tailored to your needs. We work with business owners on tax planning, entity selection, bookkeeping cleanup, payroll, and year-round tax questions so you can spend less time on accounting tasks and more time running your business. Our clients also appreciate our fair pricing and the confidence that comes from working with a very experienced local firm.
Most individual federal income tax returns are due April 15 each year. If the deadline falls on a weekend or holiday, it moves to the next business day. If you need more time, you can request an extension, which usually gives you until October 15 to file your return. Keep in mind that an extension to file is not an extension to pay, so any tax owed is generally still due by the original deadline.
Indiana residents should also check state filing requirements, since state deadlines and payment rules may differ from federal rules.
You may need to make quarterly estimated tax payments if you expect to owe $1,000 or more in federal tax for the year after subtracting withholding and credits. This often applies to self-employed individuals, 1099 contractors, business owners, and others who do not have enough tax withheld during the year. If you meet certain safe harbor rules, you may not need to make estimated payments.
You can pay your IRS tax bill online directly from a checking or savings account, by debit or credit card, by mail with a check or money order, or through an IRS payment plan if you cannot pay in full. Paying online is usually the fastest and easiest option, and it can help reduce additional penalties and interest if you pay as soon as possible. You can watch this video we put together to create your ID.Me Account.
You can pay your Indiana tax bill online through the Indiana Department of Revenue, by mail, or through other payment options, depending on the type of tax you owe. If you are unable to pay the full amount, it is still a good idea to pay what you can and contact the Indiana Department of Revenue about available payment arrangements. You can watch this video on how to create an INTIME Account.
Most taxpayers should compare both options and choose the one that lowers their taxable income the most. The standard deduction is a set amount, while itemizing allows you to deduct certain eligible expenses if they add up to more than your standard deduction. Common itemized deductions include mortgage interest, charitable gifts, medical expenses, and some state and local taxes.
If you’re self-employed or work as a 1099 contractor, you may be able to deduct ordinary and necessary business expenses related to earning income. Common deductions can include home office expenses, business mileage, supplies, advertising, phone and internet costs used for business, travel, professional fees, insurance, and retirement plan contributions. You may also qualify for the qualified business income deduction, depending on your income and business type. Keep good records, since deductions must be properly documented and used for business purposes.
Your filing status is generally based on your marital status on the last day of the year. Most unmarried taxpayers file as single, but those who support a qualifying dependent and pay more than half the cost of keeping up a home may qualify for head of household. Married couples usually benefit most from filing jointly, though some situations may call for married filing separately.
Business tax deadlines vary based on how your business is structured. Sole proprietorships and single-member LLCs usually file by April 15, partnerships and S corporations usually file by March 15, and C corporations usually file by April 15. Businesses may also have quarterly estimated tax deadlines, payroll tax deadlines, and information return deadlines such as W-2s and 1099s.
Self-employment tax is generally 15.3% of your net earnings from self-employment, made up of 12.4% for Social Security and 2.9% for Medicare. You typically calculate it on 92.35% of your net profit after expenses. If your net self-employment earnings are $400 or more, you generally must file and pay self-employment tax, and some higher earners may also owe the additional Medicare tax.
To file a business tax extension, you generally need to submit IRS Form 7004 by the original due date of your business return. This gives many businesses up to six extra months to file, depending on the entity type. Keep in mind that an extension to file is not an extension to pay, so any tax due should still be paid by the original deadline to help reduce penalties and interest.
Quarterly estimated tax payments are usually due four times a year: April 15, June 15, September 15, and January 15 of the following year. These deadlines apply to the quarter just ended, not the quarter ahead. If a due date falls on a weekend or holiday, the deadline moves to the next business day.
Small business owners have several retirement plan options, including a 401(k), SEP IRA, SIMPLE IRA, and in some cases a solo 401(k) if there are no employees other than a spouse. The best option depends on your business structure, number of employees, and how much you want to contribute each year. NSO and Company and our financial partners can help you compare plan limits, tax benefits, and administrative requirements.
Estate tax is a tax on the deceased person’s estate, and it is paid before assets are distributed to beneficiaries. Inheritance tax is a tax on the person receiving the inheritance, and it is only imposed in certain states. The federal government has an estate tax, but it does not have an inheritance tax.
Generally, no. Money or property you inherit from a family member is usually not considered taxable income for federal tax purposes. However, if the inherited assets later produce income, such as interest, dividends, rent, or retirement account distributions, that income may be taxable.
Form 1041 is the federal income tax return used to report income, deductions, gains, and losses for estates and trusts. It is usually filed by the fiduciary of the estate or trust if the entity has taxable income or gross income of $600 or more during the tax year, or if other filing requirements apply.
Yes. In most cases, an estate needs its own EIN so it can be treated as a separate tax entity from the deceased person. The estate’s EIN is used to open an estate bank account and file estate income tax returns, such as Form 1041, when required.
The estate’s personal representative, usually the executor or administrator, is responsible for filing the estate’s tax return. If there is no personal representative, the person in possession of the decedent’s property may have to file the return.
An executor is usually responsible for filing the deceased person’s final individual income tax return, the estate’s income tax return if the estate earns income, and, in some cases, a federal estate tax return. The exact filings depend on the decedent’s income, the value of the estate, and whether state tax returns are also required.
If you discover an error after filing, you may need to file an amended return to correct your income, deductions, credits, filing status, or other information. Contact NSO and Company to file an amended return. If the IRS already made a correction or sent you a notice, you may not need to amend unless you still need to change something else.
Yes, the IRS can select some returns at random, but most audits are triggered by computer screening, matching issues, or other selection methods. Being audited does not always mean there was an error, and the IRS may review returns filed within the last three years, with some situations going back farther.
IRS audits usually take anywhere from a few months to more than a year, depending on the type of audit and how quickly information is provided. Simple correspondence audits may be resolved relatively quickly, while more complex office or field audits can take much longer, especially if there are questions, missing documents, or an appeal.
Yes. If you disagree with the results of an IRS audit, you may be able to appeal the findings and request further review. The appeal process is designed to resolve disputes without going to court, and it is important to respond by the deadline listed in your IRS notice.
If your tax bill is more than you can pay right away, you should still file on time and make a partial payment if possible. The IRS may allow you to set up a payment plan so you can pay the balance over time. NSO and Company can help you review your options and choose the best approach for your situation.
If you can’t pay your tax bill in full, you may be able to set up an IRS payment plan. Many taxpayers can apply online through their IRS account and get an immediate decision, while others may need to apply by phone or mail using Form 9465. You generally need to be current on your tax filings, and interest and penalties will usually continue until the balance is paid off.
IRS interest starts accruing on unpaid taxes from the original due date of the return and continues until the balance is paid in full. The IRS calculates interest on a daily compounding basis, and the rate is adjusted quarterly. If you also owe penalties, interest may continue to grow on the remaining balance until everything is paid.
If you receive an IRS or state tax notice in the mail, do not ignore it. Read the notice carefully, check the tax year and amount involved, and follow the instructions for responding by the deadline listed. If you agree with the notice, you may only need to pay the amount due or take the requested action. If you disagree, gather your records and respond with supporting documentation. If you are unsure how to respond, NSO and Company can help review the notice and advise you on the next step.
NSO and Company can often clean up records going back several months or even several years, depending on how complete your supporting documents are. In many cases, the cleanup starts with the oldest unreconciled period and works forward until the books are current. The more bank statements, receipts, invoices, and prior reports you have, the farther back the cleanup can usually go.
The best way to keep bookkeeping records is to use a consistent system that tracks all income and expenses, keeps business and personal finances separate, and stores receipts, invoices, bank statements, and other supporting documents in an organized way. NSO and Company uses QuickBooks Online and ADP because of the ease of use to record transactions, reconcile accounts, and find records when needed for our business clients.
A profit and loss statement, also called an income statement, shows your business’s revenue, expenses, and net profit or loss over a specific period of time. It helps you see whether your business is making money, identify spending trends, and make better financial decisions.
A balance sheet shows what a business owns and owes at a specific point in time, while an income statement shows the business’s income and expenses over a period of time. Together, they give a fuller picture of financial health and performance.
If you are a sole proprietor or independent contractor and do not have employees, you typically do not run payroll for yourself. Instead, you may take an owner’s draw and pay estimated taxes during the year. If your business is taxed as an S corporation, you usually must run payroll for your salary, and the pay frequency can be weekly, biweekly, semi-monthly, or monthly, depending on your business needs and state requirements.
Employees and independent contractors require different tax forms. For employees, businesses generally collect Form W-4 at hiring, complete Form I-9 to verify work eligibility, and issue Form W-2 at year-end. For contractors, businesses usually collect Form W-9 before paying them and issue Form 1099-NEC if payments meet the reporting threshold. If you are unsure whether a worker should be treated as an employee or contractor, it is important to classify them correctly before issuing tax forms.
Employers generally must withhold federal income tax, Social Security tax, and Medicare tax from employee wages. In some cases, employers must also withhold Additional Medicare tax and state or local income taxes, depending on where the employee works and lives. Employers are also responsible for paying unemployment taxes, including FUTA and any applicable state unemployment tax, but those are usually not withheld from employee wages.
FUTA is the federal unemployment tax, and SUTA is the state unemployment tax. Employers generally pay both taxes to fund unemployment benefits for workers who lose their jobs. These taxes are usually not deducted from employee wages, though the exact rules and rates can vary by state.
Using a payroll provider can save time, reduce errors, and help ensure payroll taxes and filings are handled correctly. Payroll can be complex, especially when you have employees, multiple tax deadlines, or state and federal withholding requirements. NSO and Company is experienced in payroll services and offers fair pricing, making it easier for business owners to stay compliant without spending hours managing payroll themselves.
8950 Fitness Lane, Suite 100
Fishers, IN 46037
Tel: 317-588-3131
Fax: 317-588-3134
Business Hours: Monday-
Friday: 8 am – 5 pm