Patience MG CPA

Welcome to MG Patience CPA. Monika Patience is a CPA and MST (Master of Science in Taxation). She has been in the tax and accounting business since 1973. We have extended hours, are open for business all year round and offer a"free initial consultation". Monika is also a certified"Quick Books"Pro Advisor (2008-2012).Reasons to file on timeFailure to file penaltyThe failure to file penalty is 5% of each month the tax is owed, up to a maximum penalty of 25%. compare that to the failure to pay penalty which is .5% of each month. Even if you do not have the money to pay, at least file by the deadline. In this case, you will be made to pay a late payment fee and not a late filing fee. This will save you some moneyCarryover of Net Operating losses.(NOL)A net operating loss is carried back 2 years and forward 20 years. A net operating loss offsets taxable income to the year(s) it is carried. And if the year is still open the taxpayer gets a refund, sometimes substantial refunds. However if the return that generated the net operating loss was not filed on time, one or both of the carryback years might be closed. In that case you still have to carry back the loss and if the loss gets absorbed in the closed carryback years you will not get the refund you otherwise would have received.Elections to not carryback a Net Operating Loss (NOL)You can choose not to carryback a NOL, but this election has to be made on a timely filed return. One reason for waiving carrying an NOL back to the two prior years is that the taxpayer in those years sold something and incurred a large capital gain or had qualified dividends that were taxed at lower rates and the NOL would be absorbed against those lower rates income. A better way would be to carry the NOL forward to years where the taxpayer anticipates no sale of capital assets and less of lower rates income, like qualified dividendsMember of:American Institute of Certified Public AccountantsBisbee Chamber of Commerce