Business & Financial Solutions offers experienced business & personal tax advisory. Certainly, we can help with tax planning, return preparation, & IRS representation. Our tax preparers cover a wide range of consultation for individuals and businesses. Further, Washington DC tax preparers should be more versatile than most. And this is largely because of the tri-state area of coverage for firms in the DC area. And this is also one of the areas where Business & Financial Solutions excels.
Business & Financial Solutions covers tax preparation for 28 states. But we also prepare tax returns for a wide range of industries. Some include non-profits, hotels, restaurants suppliers, real estate, restaurants, retail and construction. But we also provide services for eldercare planning, attorney firms & consultants. And our offerings are provided in the Washington, DC Metro Area, including Fairfax, Frederick and Montgomery Counties. Again, we include and nationwide.
If you are domiciled in a state that has an income tax, that state has a claim on you for taxes even when you are absent from the state. And you may also owe income tax to another state. Because, you have a temporary residence there (place of abode). If so, reciprocal agreements often determine which state gets your money. Or the agreement may determine what proportion of it each state gets. But your tax preparer may have to file returns in both states and claim a credit for taxes paid to one of them. (Note, however, that a state may relinquish its right to collect state income tax from one of its residents.) In any case, tax experts should be sought when it involves any multiple state problems.
Foreign Service families assigned overseas or to Washington, DC for the first time need to think carefully. Because these will not be run of the mill tax returns. And careful consideration should be made about state and local income taxes from the beginning. If you are assigned overseas, most, but not all, states continue to tax your income. Of course, this is assuming you maintain your domicile in that state, even if you are not physically present there. Because a tour of duty overseas does not constitute a change of domicile to the overseas location. (See AFSA’s annual guide for a list of those jurisdictions that in certain circumstances do not tax income of non-resident domiciliaries.)
Any person assigned to the Washington DC Metro area, including Montgomery County MD and Northern Virginia needs to be careful. Because if you decide to make it a permanent move — i.e. give up your previous domicile and make Maryland, Northern Virginia, or the District of Columbia your permanent home—you can expect to pay income tax in your new jurisdiction. And you will be taxed from the time you moved there. (and also later when you go overseas).
However, you can keep your domicile in your home state while temporarily residing in the Washington area. Of course, this is assuming you view this as a temporary assignment. And you will continue to owe income taxes to your home state. But this is unless it is among those states that do not tax non-resident domiciliaries in certain circumstances.
Your income liability to a local jurisdiction in these circumstances will depend on how long you have a place of abode there in any particular year. Generally, if you reside for more than six months in a local jurisdiction, you will owe income taxes to that jurisdiction for that year even if you are not domiciled there. Again, a credit is usually allowed to prevent double taxation. Additional tax planning is available for all our clients. Why not have all your tax services under the same roof.
Inevitably, BFS acquires clients who already have IRS and state problems in Washington DC, Northern VA, Montgomery County MD, Prince Georges County MD. One of the complaints we hear most is that IRS Agents and Revenue Officers use their knowledge of tax law to take unfair advantage of taxpayers to maximize revenue collection. It can get to the point that it is nearly mathematically impossible to pay the total liability with all the added penalties, fees, and constantly accruing interest.
Knowing more about the most common IRS tax problems is one way for you to understand more about how the IRS sees you. Knowing exactly where you are in the IRS collections process helps you decide what action to take to resolve your IRS problems.
The CPAs and consultants in our Rockville office can help sort through these complicated issues, or provide advanced tax planning. Call (855) 557-2222. Our preparers are knowledgeable on temporary residence tax matters for the District of Columbia.
Serving local areas in: Northern Virginia, McLean VA, Centreville, Fairfax, South Riding, Chantilly
Visit our offices in Vienna VA, Rockville or Frederick MD (Washington DC Metro Area)