tax planning and preparation

Tax Services for Individuals and Small Businesses

Tax Services

CMD has been providing tax planning and preparation services to customers throughout the US since 2003.  We provide personal one-on-one service and offer answers to your important tax-related questions.  We stay up-to-date on ever-changing tax laws and work with our clients to maximize deductions and minimize tax obligation while remaining in full compliance with IRS statutes.

Our approach is 100% electronic including the digital upload and maintenance of your documentation to a secure cloud-based service where you will have 24/7 access.  This approach allows us to have a more competitive cost structure, while providing you access to your documentation for free and when you need – read more about cloud security here.

For Individuals

Why should you use a CPA to prepare your taxes?  Often times, while marketed tax software may appear to be a cheaper route, we continue to find clients leaving tax deductions on the table.  In addition, don’t dismiss the amount of your personal time it takes to invest in preparing a tax return. CMD offers affordable prices for individuals and the piece of mind that your taxes are filed timely, accurately and with all allowable deductions.

For Small Businesses

Business taxes can be complex and overwhelming to the average business owner.  Let CMD prepare your LLC, partnership and corporate tax returns to ensure there are no errors or omissions leading to interest and penalties, or worse, with the IRS.  In addition, CMD offers controller and bookkeeping services we package together with tax planning and preparation – contact us to learn how we can save you time and money combining these services.

What Tax Documents Should I Provide For My Personal Taxes?

Income documents:

  • W-2s
  • 1099s
  • Gambling Income (W2-G)
  • Jury duty pay or unemployment compensation
  • Alimony received
  • Social Security statement (1099-SSA)
  • Dividend and interest statements (1099-DIV and 1099-INT)
  • Retirement distributions (1099-R)
  • Brokerage statements (1099-B), along with statements showing when investments were bought and sold
  • K-1 statements reporting profits from partnerships, trusts, and small businesses
  • Record of income and expenses for rental properties
  • Record of income and expenses for self-employment

Other tax documents:

  • HUD-1 Escrow statement for property bought or sold
  • Summary of moving expenses
  • Summary of educational expenses (college tuition)
  • Summary of child care, day care, or adult day care expenses, including the recipient’s name, tax ID number and address 
  • IRA contributions (traditional, SEP, or rollovers)
  • Student loan interest paid (1098-E) 

Tax deduction documents:

  • Health care expenses (doctors, dentists, health insurance, eye care, medicine)
  • Real estate taxes
  • Motor vehicle registration
  • Mortgage interest paid (1098)
  • Gifts to charity 
  • Last year’s tax preparation fees
  • Job-related expenses (union dues, job education, uniforms)
  • Loss of property due to casualty or theft
  • Gambling losses
  • Alimony paid, as well as the recipient’s social security number 

Document Retention Guidelines

Business Documents To Keep For One Year

  • Correspondence with Customers and Vendors
  • Duplicate Deposit Slips
  • Purchase Orders (other than Purchasing Department copy)
  • Receiving Sheets 
  • Requisitions
  • Stenographer’s Notebooks
  • Stockroom Withdrawal Forms

Business Documents To Keep For Three Years

  • Employee Personnel Records (after termination)
  • Employment Applications
  • Expired Insurance Policies
  • General Correspondence
  • Internal Audit Reports 
  • Internal Reports
  • Petty Cash Vouchers
  • Physical Inventory Tags
  • Savings Bond Registration Records of Employees
  • Time Cards For Hourly Employees 

Business Documents To Keep For Six Years

  • Accident Reports, Claims
  • Accounts Payable Ledgers and Schedules
  • Accounts Receivable Ledgers and Schedules
  • Bank Statements and Reconciliations
  • Cancelled Checks
  • Cancelled Stock and Bond Certificates
  • Employment Tax Records
  • Expense Analysis and Expense Distribution Schedules
  • Expired Contracts, Leases
  • Expired Option Records
  • Inventories of Products, Materials, Supplies 
  • Invoices to Customers
  • Notes Receivable Ledgers, Schedules
  • Payroll Records and Summaries, including payment to pensioners
  • Plant Cost Ledgers
  • Purchasing Department Copies of Purchase Orders
  • Sales Records
  • Subsidiary Ledgers
  • Time Books
  • Travel and Entertainment Records
  • Vouchers for Payments to Vendors, Employees, etc.
  • Voucher Register, Schedules 

Special Circumstances

  • Car Records (keep until the car is sold)
  • Credit Card Receipts (keep with your credit card statement)
  • Insurance Policies (keep for the life of the policy)
  • Mortgages / Deeds / Leases (keep 6 years beyond the agreement)
  • Pay Stubs (keep until reconciled with your W-2)
  • Property Records / improvement receipts (keep until property sold) 
  • Sales Receipts (keep for life of the warranty)
  • Stock and Bond Records (keep for 6 years beyond selling)
  • Warranties and Instructions (keep for the life of the product)
  • Other Bills (keep until payment is verified on the next bill)
  • Depreciation Schedules and Other Capital Asset Records (keep for 3 years after the tax life of the asset) 

Personal Documents To Keep For One Year

  • Bank Statements
  • Paycheck Stubs (reconcile with W-2) 
  • Canceled checks
  • Monthly and quarterly mutual fund and retirement contribution statements (reconcile with year end statement)

Personal Documents To Keep For Three Years

  • Credit Card Statements
  • Medical Bills (in case of insurance disputes)  
  • Utility Records
  • Expired Insurance Policies  

Personal Documents To Keep For Six Years

  • CPA Audit Reports
  • Legal Records
  • Important Correspondence
  • Income Tax Returns 
  • Income Tax Payment Checks
  • Investment Trade Confirmations
  • Retirement and Pension Records 

Business Records To Keep Forever

While federal guidelines do not require you to keep tax records “forever,” in many cases there will be other reasons you’ll want to retain these documents indefinitely.

  • Audit Reports from CPAs/Accountants
  • Cancelled Checks for Important Payments (especially tax payments)
  • Cash Books, Charts of Accounts
  • Contracts, Leases Currently in Effect
  • Corporate Documents (incorporation, charter, by-laws, etc.)
  • Documents substantiating fixed asset additions
  • Deeds
  • Depreciation Schedules
  • Financial Statements (Year End)
  • General and Private Ledgers, Year End Trial Balances
  • Insurance Records, Current Accident Reports, Claims, Policies
  • Investment Trade Confirmations
  • IRS Revenue Agents’ Reports
  • Journals
  • Legal Records, Correspondence and Other Important Matters
  • Minute Books of Directors and Stockholders
  • Mortgages, Bills of Sale
  • Property Appraisals by Outside Appraisers
  • Property Records
  • Retirement and Pension Records
  • Tax Returns and Worksheets
  • Trademark and Patent Registrations