Facing an IRS audit
Respond quickly, stay polite, and request a short extension if you need time to gather receipts. Organize bank statements, proof of income, and any correspondence before you meet with an examiner.
Tax FAQs
Answers for the tax questions North Texans ask the most.
Use this modern guide to understand IRS audits, capital gains, Roth IRA planning, mortgage deductions, alimony reporting, and everyday bookkeeping habits that keep stress low.
IRS audit preparation
Small-business recordkeeping
Capital gains decisions
Mortgage and refinance deductions
Top questions
Quick guidance for FAQs we hear every season
Pulled from our archived FAQ page and refreshed for today’s rules, these highlights show what the IRS expects and how Tax Master DFW keeps you compliant.
Records that keep the IRS happy
Keep receipts for every business purchase, log income and expenses when they happen, and store backup copies safely. Organized books reduce audit risk and make quarterly planning easier.
Capital gains essentials
Know whether a sale is short-term (under one year) or long-term—rates and reporting differ. Track original purchase prices, improvements, and related fees to reduce taxable gain.
Roth IRA advantages
Contributions are made with after-tax dollars, but future qualified withdrawals come out tax-free. Starting accounts for working teens can build decades of tax-free growth and teach smart saving habits.
Mortgage interest & refinances
Interest and property taxes on your primary home can still be deductible when you itemize. Points paid on a refinance are amortized over the loan term, but remaining points become deductible if you refinance again.
Alimony tax rules
Payments ordered in pre-2019 agreements remain deductible for the payer and taxable to the recipient when they are in cash, stop at death, and are not child support. Later agreements follow the Tax Cuts and Jobs Act rules—ask us to review yours.
Readiness checklist
Stay organized before the IRS asks
Follow these steps to prevent scrambling when an IRS letter arrives or when you need numbers for a loan application.
Audit preparation basics
- Respond to every IRS notice by the printed deadline and record the CP or LTR number.
- Group receipts by category and month so the examiner can review totals quickly.
- Bring copies, not originals, and take notes on what the agent requests during any meeting.
Small-business recordkeeping
- Separate business and personal transactions with dedicated bank accounts and credit cards.
- Document mileage, home office usage, and inventory in writing—verbal estimates rarely hold up.
- Use spreadsheets or accounting software to log income and expenses as they occur.
Investments and retirement
- Keep brokerage statements showing cost basis, reinvested dividends, and sale proceeds.
- Maintain Roth IRA contribution records so distributions remain tax-free later.
- Track refinance closing disclosures and 1098 mortgage statements for itemized deductions.
When to call Tax Master DFW
- You need help decoding an IRS notice or want us to speak with the Service on your behalf.
- You plan to sell investments, rental property, or a business and want to forecast taxable gains.
- You are finalizing a divorce agreement and must confirm how alimony or child support is treated.
Deep dive guidance
Context from the original FAQ, modernized for 2025
These points summarize the most relevant lessons from our legacy FAQ archive so you can make confident decisions right now.
Partnership mindset
IRS agents are people, too. Staying calm, courteous, and transparent helps secure reasonable timelines and keeps the conversation focused on facts, not emotions.
Documentation wins
Audit adjustments usually stem from missing proof. Save every invoice, bank confirmation, and contract—especially if you claim home office, vehicle, or startup deductions.
Long-term planning
Roth IRAs, college savings, and home equity decisions are easier when you model the tax impact over many years. We help you stress-test each option before you sign.
Know the limits
Capital losses offset gains dollar for dollar, with only $3,000 of excess losses deductible annually. Plan sales accordingly or carry losses forward strategically.
Mortgage math
Refinancing twice in a year can accelerate the deduction for points paid on the earlier loan. Track each Form 1098 to capture the deduction the year the loan is paid off.
Alimony vs. child support
Labeling matters. Only payments defined as alimony in court documents qualify for deductions under legacy agreements. Confirm wording before finalizing paperwork.
Let’s talk
Bring your questions—we will map out the next move
Whether you received a letter, plan to refinance, or want a second opinion on retirement choices, we are ready to help.
Visit or call
Phone
Office
150 W Main St. Suite 2A
Lewisville, Texas 75057
Email
Weekday, evening, and virtual appointments are available during peak season. Se Habla Español.
Checklist to bring
- IRS notices and letters, including CP or LTR numbers
- Expense logs, mileage trackers, or bookkeeping exports
- Closing disclosures, brokerage statements, or retirement summaries
- Signed court orders for alimony or support arrangements