Frequently Asked Questions

This page provides answers to common questions about our services and processes when working with us.
It can be helpful for clients and non-clients alike. 

Table of Contents

Our Processes

At Donnelly Tax Law, we have an effective process for preparing your return. By following it, we can prepare your return on time. 

If you are a non-crypto client:

  1. Pay your first, initial deposit for work to begin. 
  2. Our client manager then contacts you with a welcome email and instructions on how to provide us with the tax documents that we need. 
  3. At the same time, we will create a ShareFile account for you and you will receive an email with a link to activate your ShareFile account. This is where you will upload your documents for us.   
  4. Once all the necessary documents are provided, your return will be assigned to one of our tax preparers. If they have any additional questions, they will contact you at that time.
  5. After your return has been prepared, it will then be reviewed by the Tax Manager before the final steps to finalize the return. 
  6. Upon completed review, the Tax Manager will send you an email to let you know that your return is ready for your review and will also send a secure link through ShareFile that will allow you to download and review your return.  
  7. Your return will also be sent to you (and your spouse if married filing jointly) through DocuSign, which will allow us to collect your electronic signatures, which will allow us to file your return for you.
  8. In conjunction with the final steps to getting you filed, you will also receive an email with your final invoice for paying the remaining balance on your account. 
  9. Once you complete the final payment, we will then file the return and monitor for the acceptance. For e-filed returns, you will receive an email once the return(s) are accepted.
  10. If you provided us your bank information during the process (preferred), we set up for your tax payment due or refund to be automatically debited/deposited into your bank account. You can also pay balances by using a payment voucher to accompany a check or go to the IRS/state website to make direct payments (see below for further instructions).  
  11. If we do amended returns for you, those cannot be filed electronically and we cannot set up automatic payment. Amended returns must be mailed in and paid by you, which can be done online at the IRS website: https://www.irs.gov/payments.

If you are a crypto client whose crypto taxes we are calculating: 

  1. Pay your first, initial deposit for work to begin. 
  2. Our client manager then contacts you with a welcome email and instructions on how to provide us with the tax documents that we need. If we are calculating your crypto taxes, you will receive specific instructions for how to get us your raw crypto data in the acceptable formats that we need.  
  3. At the same time, we will create a ShareFile account for you and you will receive an email with a link to activate your ShareFile account. This is where you will upload your documents for us.   
  4. Once all the necessary documents are provided and your crypto data, you will be moved ahead in the process to our crypto specialist. If you are a 1st-time client, we schedule a kickoff meeting with you to review your data with our crypto specialist before they finalize the data and results. If you are a returning client, we do not schedule a kickoff meeting. However, our crypto specialist is in direct contact and will schedule a meeting with you if needed. 
  5. Once your crypto calculations are done, Clinton will review the results with you to make sure they are in line with your expectations. 
  6. A second invoice is then emailed to you for a second deposit towards your balance. 
  7. Once your second deposit is paid, your return is assigned to one of our tax preparers. 
  8. After your return has been prepared, it will then be reviewed by the Tax Manager before the final steps to finalize the return. 
  9. Upon completed review, the Tax Manager will send you an email to let you know that your return is ready for your review and will also send a secure link through ShareFile that will allow you to download and review your return.  
  10. Your return will also be sent to you (and your spouse if married filing joint) through DocuSign which will allow us to collect your electronic signatures which will allow us to file your return for you.
  11. In conjunction with the final steps to getting you filed, you will also receive an email with your final invoice for paying the remaining balance on your account.
  12. Once you complete the final payment, we will then file the return and monitor for the acceptance. For e-filed returns, you will receive an email once the return(s) are accepted.
  13. If you provided us your bank information during the process (preferred), we set up for your tax payment due or refund to be automatically debited/deposited into your bank account. You can also pay balances by using a payment voucher to accompany a check or go to the IRS/state website to make direct payments. 

If you are not yet a client, please click here to schedule a consultation

If you are already an existing client, please be in touch with our client manager regarding options for scheduling a call. 

Tax Payments & Refunds

Payment of both Federal and State taxes are due by April 15th to avoid possible penalties and interest.

Because we specialize in doing complex tax returns, we automatically file extensions of the filing deadline for our clients. That gives us an extra six months to finish. This is an extension of time to file, not for payment of taxes due. So, we won’t know if you will owe taxes or exactly how much your taxes owed will be, until after April 15th.

For more information regarding how to make your tax payment and estimated taxes, scroll below to see our other questions.

As a client of Donnelly Tax Law, we have you complete our tax prep questionnaire to gather important information for preparing and filing your return. When completing our tax prep questionnaire for the tax year, we ask you to provide us with your bank information. This way, automatic payment can be set up for any taxes due or refund of taxes to be deposited directly into your bank account. During the DocuSign process, you will sign off on the banking details to ensure a smooth transaction.

We prefer you provide your banking info during the tax prep process, but even if you did not, you will have the opportunity to do so when our tax preparation team sends you your return for your review and signature. You can also let our team know if you prefer to pay on your own by check or directly on the IRS website.

  1. Go to https://www.irs.gov/payments and select if you want to pay with Bank Account (Direct Pay) or with Debit Card or Credit Card (this charges a fee). 
  2. On the next page click on ‘Make A Payment’. 
  3. Then select the following: Reason for Payment: Tax Return or Notice
  4. For the next field, Apply Payment To, select: 1040, 1040A, 1040EZ. 
  5. For the next field, Tax Period for Payment, type in the tax year that you are making a payment for.
  6. Click continue to proceed to verify your identity by entering information from your last 1040 that was filed with the IRS. 
  7. In the Liability Estimation box, enter the amount that you are going to pay.

For information on how to make an estimated tax payment when an extension is filed for your return, scroll to the next question.

If you think you may owe taxes for the tax year and are not filing by the April 15th deadline, you still need to make an estimated tax payment. Any estimated taxes to the IRS or state are due by April 15th to avoid possible penalties and interest (even if an extension is being filed for you). 

  1. Go to https://www.irs.gov/payments and select if you want to pay with Bank Account (Direct Pay) or with Debit Card or Credit Card (this charges a fee). 
  2. On the next page click on ‘Make A Payment’. 
  3. Then select the following: Reason for Payment: Extension
  4. The next two fields should automatically populate with Apply Payment To: 4868 (for 1040, 1040A, 1040EZ) and Tax Period for Payment: [Prior Tax Year]
  5. Click continue to proceed to verify your identity by entering information from your last 1040 that was filed with the IRS. 
  6. In the Liability Estimation box, enter the amount that you are going to pay.

Because we specialize in doing complex tax returns, we automatically file extensions of the filing deadline for our clients. That gives us an extra six months to finish. This is not an extension of when taxes must be paid. So, we won’t know if you will owe taxes or exactly how much your taxes owed will be, until after April 15th.

For information on how to make your yearly tax return payment to the IRS online (for a return that has been filed), scroll above to the prior question.

The IRS wants you to pay estimated taxes for the previous year if:

  1. You expect to owe at least $1000 in tax after subtracting your withholding.
  2. You expect your withholding to be less than the smaller of 90% of your final tax bill or 100% of the tax shown on the previous year’s tax return.

For some bedtime reading, try Tax Withholding and Estimated Tax. It’s a 55-page IRS document. The length should be a clue that estimating taxes can be complicated!

Any estimated taxes to the IRS or state are due by April 15th to avoid possible penalties and interest. Because we specialize in doing complex tax returns, we automatically file extensions of the filing deadline for our clients. That gives us an extra six months to finish. This is not an extension of when taxes must be paid. So, we won’t know if you will owe taxes or exactly how much your taxes owed will be, until after April 15th.

For how to make an estimated tax payment to the IRS online, scroll above to other questions. 

We offer a year-end estimating service for clients. We use a sophisticated planning tool to estimate both federal and state taxes. The fee is $180. This service must be engaged with us and the necessary information provided no later than February 1st. 

To get started, send us an email to info@DonnellyTaxLaw.com stating what income came from wages, business, and investments. If there are business expenses associated with the income, please provide the total expense. It might be helpful to look at your prior year’s tax return.

For some bedtime reading, try Tax Withholding and Estimated Tax. It’s a 55-page IRS document. The length should be a clue that estimating taxes can be complicated and requires time!

Security Of Information

At Donnelly Tax Law, security is a top priority and of the utmost importance. So we insist that any sensitive information you provide us is uploaded to your personalized ShareFile folders that we create for you. 

ShareFile is a remote, secure data sharing site we utilize to ensure documents provided by clients stay safe. When you sign on with us and receive your welcome email, you will also receive an email to activate your ShareFile account that we create for you. If you are a returning client, you most likely still have access to your ShareFile account from the previous year. 

Sensitive information includes documents that have your social security number, bank account information, etc. Do not email information such as this. If you do, we will upload it to your ShareFile folders for you, but you are entirely liable and responsible for the security of your information. 

At Donnelly Tax Law, we also use 2-factor authorization for logging into systems we use, and our emails are encrypted. These are steps to ensure the safety of your personal information.

This deadly crypto mistake could cost you $10K!

 

Get our exclusive free download that can save you from making this costly mistake with your crypto taxes.

Thank you for joining us and taking the first step toward protecting your crypto tax return from an IRS audit. Your download has just been emailed to you. To ensure our emails don't end up in your spam folder, add info@donnellytaxlaw.com to your safe sender's list.

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