Tax Department FAQs
When is my federal tax return due?
As an individual, your federal income tax return, Form 1040, is due April 15th (or the next business day if the 15th falls on a weekend or holiday). If you require more time to file, you can request a six-month extension. This is an extension only for filing; any tax is still due on the original due date.
When is my Wisconsin state tax return due?
For most individuals, your Wisconsin state income tax return is due on the same date as your federal return, typically April 15th (or the next business day if April 15th falls on a weekend or holiday).
When is my Illinois state tax return due?
For most individuals, your Illinois state income tax return is due on the same date as your federal return, typically April 15th (or the next business day if April 15th falls on a weekend or holiday).
When are my estimated taxes due?
For an individual taxpayer, your payments are due on the following dates (or the next business day if the due date falls on a weekend or holiday).
1st quarter – April 15th
2nd quarter – June 15th
3rd quarter – September 15th
4th quarter – January 15th
Note, these are for Federal payments only; each state can have varying due dates
What are some tax considerations for selling my business?
There are many tax items to consider, but here are some key places to start
- Will it be structured as an asset purchase or a stock purchase?
- Do you hold qualified small business stock in a C-corp that could qualify for a gain exclusion?
- Should you consider an Employee Stock Ownership Plan (ESOP)?
- How should the purchase price be allocated between fixed assets, intangible assets, goodwill, or other assets?
- What states were your business operating in, and where will any gains be taxed for state purposes?
What are the differences between my Federal and state income for tax purposes?
While there are many potential differences in income between Federal and state levels, some of the most common we see are state taxes, depreciation, interest (including municipal bond interest), and exclusions for certain retirement income.
Audit/Accounting Department FAQs
If you are an auditor and don’t do taxes, why do you have a “busy season”?
Many of our clients require their audit reports to be completed within 60 or 90 days of year-end. Many of our clients have a 12/31 year-end, so most of our audit work must be completed within 60-90 days of 12/31. This leads to our typical “busy season” in January, February, and March. In addition, auditors often need to complete their audits before tax accountants can begin their work, and tax returns must be filed by March 15 or April 15.
What is the difference between an independent financial statement audit and a review?
An audit provides the highest level of assurance (reasonable assurance) that financial statements are free from material misstatement. The auditor expresses a positive opinion by saying “In our opinion, the financial statements present fairly…”. A Review provides limited assurance (moderate level). The accountant issues a negative assurance statement: “We are not aware of any material modifications…”. An audit includes an understanding of internal controls, whereas a review does not. An audit is more time-consuming due to the depth of procedures and compliance requirements, and therefore more costly.
Why do we need an independent financial statement audit if our books are accurate?
An audit provides independent assurance that your financial statements are free from material misstatement and comply with applicable accounting standards. It enhances the credibility of your financials with users, including investors, lenders, and regulators. Even if your books are accurate, an audit adds trust and transparency, which is often required by law or contractual agreements.
How long does an independent financial statement audit take?
The audit timeline can vary widely depending on the company’s size and complexity, but one week is typically the minimum. There are ways that a client can help the audit go more smoothly, which could also potentially speed up the audit process, including:
- Ensuring all records and reconciliations are complete and accurate.
- Responding promptly to auditor requests.
- Using a secure portal for document sharing.
- Conducting an internal pre-audit readiness review to identify potential issues early.
How often should we have an independent audit or review performed?
The frequency depends on the Company’s size, industry, and regulatory requirements. Public companies and certain nonprofits are required to have annual audits. Private companies may opt for annual or periodic audits or reviews, depending on lender requirements, investor expectations, or internal governance policies.
Client Accounting & Advisory Services (CAAS) Department FAQs
What are Client Accounting & Advisory Services (CAAS), and how are they different from traditional bookkeeping?
CAAS (Client Accounting and Advisory Services) combines traditional bookkeeping with strategic financial advice. It helps small business owners keep accurate records, manage cash flow, and make informed decisions—so you can focus on growing your business instead of worrying about the numbers.
How can CAAS help me save time and money?
By outsourcing accounting and advisory tasks, you reduce overhead costs and free up valuable time. CAAS provides expert financial guidance without the expense of hiring full-time staff, helping you streamline operations and improve profitability.
What types of businesses benefit from CAAS?
Any small business seeking greater financial clarity and planning can benefit from client accounting & advisory services. Whether you’re a startup, a growing company, or an established business without an in-house finance team, CAAS offers scalable solutions tailored to your needs.
Will CAAS help me plan for growth?
Absolutely. CAAS goes beyond day-to-day accounting by offering forecasting, budgeting, and strategic insights. These tools help you make smart decisions about expansion, investments, and long-term success.
What is the difference between CAS and CAAS?
CAS (Client Accounting Services) and CAAS (Client Accounting and Advisory Services) are often used interchangeably, but they reflect different levels of support. CAS typically focuses on transactional accounting tasks like bookkeeping and reporting, while CAAS includes advisory services that help businesses interpret financial data and plan forward.
Why do some firms use CAS while others use CAAS?
CAS is widely recognized as shorthand and is frequently used by business owners searching for accounting support. CAAS is the more formal industry term that reflects a broader, advisory-focused approach. Many firms formally offer CAAS while acknowledging that clients may still use CAS terminology.
We explain why the terms overlap and when the distinction matters in our CAS vs CAAS article.
How do I start using CAAS services?
Getting started is simple. We’ll review your current financial setup, discuss your goals, and create a customized plan that fits your business. From there, you’ll have ongoing support and regular check-ins to keep your finances on track.
EBP-Specific FAQs
Do I need a 401K audit?
In general, a 401(k) plan is required to have an independent audit if it has more than 120 participant account balances as of the first day of the plan year and has previously filed a Form 5500. This audit must be completed and included with the Form 5500 filing. Certain plans may qualify for an exemption or a delayed audit requirement, depending on their structure and filing history. We recommend reviewing your plan’s participant count and prior filings with a qualified advisor to determine whether an audit is required.
What is the purpose of an employee benefit plan (401K or ESOP) audit?
An audit provides independent assurance that your financial statements are accurate and comply with applicable accounting standards. It helps stakeholders, such as lenders, investors and regulators, trust the integrity of your financial reporting.
What’s the difference between an audit, review, and compilation for financial statements?
An audit provides the highest level of assurance. Auditors perform detailed testing, verify information with third parties and evaluate internal controls. A review provides limited assurance based solely on analytical procedures and inquiries. A compilation provides no assurance, but organizes financial statement information into a standard financial statement format
Businesses typically need an audit or review when required by lenders, trustees, investors or internal governance.
What can you do to prepare for a smooth and efficient audit?
The best way to ensure an efficient audit is to provide complete information early in the process. Typical items include the trial balance, general ledger detail, bank reconciliations, payroll reports, significant contracts and supporting documents for major transactions. Clear communication, timely responses and strong internal recordkeeping help keep the audit on schedule and minimize follow-up questions.
Do ESOP companies need audited financial statements?
Not automatically. ESOP companies are required to have audited financial statements only when lenders or trustees require them. However, the ESOP valuation process relies on accurate and complete financial information. Many ESOP companies choose an audit or review because it strengthens the valuation, supports trustee responsibilities and aligns corporate and plan-level reporting.
When does an ESOP require an audit?
An Employee Stock Ownership Plan (ESOP) generally requires an independent audit if the plan has previously filed a Form 5500 and has more than 120 participant account balances as of the first day of the plan year. In these cases, the audit must be completed and submitted with the Form 5500 filing. Certain ESOPs may qualify for exemptions or special filing considerations depending on plan structure and circumstances, so it’s important to review your specific situation with an experienced advisor.
What are the most common errors identified during benefit plan audits?
Eligibility and entry date errors, late remittance of employee contributions, incorrect matching contribution calculations, and misapplication of compensation definitions.
What is the Work Opportunity Tax Credit (WOTC)?
The Work Opportunity Tax Credit is a federal tax incentive for employers who hire individuals from certain targeted groups, such as veterans or long-term unemployed workers. It can significantly reduce your business’s federal tax liability.
How can business owners plan for succession effectively?
Succession planning ensures a smooth transition of leadership and ownership while protecting business value and continuity. It often includes tax planning, valuation, and estate considerations.
What’s changing for HSA and HRA contribution limits in 2026?
Each year, the IRS adjusts the Health Savings Account (HSA) and Health Reimbursement Arrangement (HRA) limits to account for inflation. Knowing the new thresholds helps employers and individuals plan their contributions effectively.
How do I update sales tax rates in QuickBooks Online?
To stay compliant with state and local tax laws, you should regularly review and update your QuickBooks Online settings for accurate sales tax collection.
How can investors defer or exclude capital gains under Opportunity Zone investments?
Investors can defer paying taxes on capital gains by reinvesting them in Qualified Opportunity Funds. If held for a long enough period, a portion of the gains may even be excluded from taxation entirely.
What major tax changes were introduced in the latest tax reform bill?
Recent legislation has introduced key updates that impact individuals and businesses, including changes to deductions, credits, and corporate tax provisions.
When should a business consider when switching CPA firms?
Many businesses consider switching CPAs when their current firm no longer aligns with their growth, complexity, or advisory needs. Common triggers include rapid expansion, multi-state operations, new ownership structures, or a desire for more proactive tax and strategic guidance. A smooth transition typically involves careful planning, document transfer, and coordination to avoid disruption.
What tax planning strategies help business owners reduce year-end surprises?
Effective tax planning looks beyond filing deadlines and focuses on forecasting, entity structure, compensation planning, timing of income and expenses, and available credits. By reviewing projections throughout the year, business owners can make informed decisions that reduce unexpected tax liabilities and improve cash flow.
How does Vrakas support multi-state tax compliance?
Businesses operating in multiple states may face complex nexus rules, varying filing requirements, and differing tax rates. Vrakas helps clients assess their filing obligations, manage registrations, and stay compliant with state and local tax laws while minimizing unnecessary exposure.