Tax Preparation and Planning

Monfalcone & Garris Company’s tax preparation and planning Tax Preparation and Planningservices are the cornerstone of our practice.

We take great pride in the care and due diligence each and every tax engagement receives. Over the years we have built long lasting relationships with our clients due to our focus on customer service and taking a proactive approach to tax preparation and planning.


Our services provided to individual taxpayers include tax compliance and planning to assist in minimizing tax liabilities and accumulating wealth.

  • Federal and State Income Tax Return Preparation and Planning
  • Household Employee Tax Compliance and Reporting
    • Assist with the household employment tax requirements
    • Assist in obtaining a federal identification number and a Virginia unemployment account number as required
    • Prepare year-end payroll tax reports
  • Gift Tax Planning and Reporting
    • Assist in determining what qualifies as a gift and if that gift is taxable
    • Prepare gift tax returns
  • Foreign Income Tax Exclusion and other International Tax Issues
    • Determine if the foreign income qualifies for exclusion under the physical presence test or the bona fide residence test
  • Federal and State Tax Credit Programs
    • Assist in determining if certain expenditures meet the criteria for federal or state tax credit programs
  • Tax Planning and Consultation for Sole-Proprietors
    • Assist with small business planning, cash flow management, payroll and bookkeeping needs
    • Assist in determining the most advantageous allowable tax deductions
  • Tax Projections and Preparation of Estimated Taxes
    • Assist in determining projected income and expenses. Use these calculations to estimate total taxes due for the year and prepare estimated tax vouchers.
  • Representation and Assistance with IRS and State Notices or Audits
    • Review notices from tax authorities, determine the appropriate course of action and assist with responses
    • Review returns under audit and represent you during the audit to assist in coming to the most taxpayer-friendly outcome possible
  • Roth IRA Conversion Analysis
    • Assist in determining whether converting funds from a traditional IRA to a Roth IRA is advisable
    • Advise on Roth segregation conversion strategy and recharacterization back to a traditional IRA if desirable
  • Analysis and Tax Preparation and Planning for Real Estate transactions:
    • Like-kind exchanges
    • Installment sales
    • Mixed-use properties – vacation homes, rental properties, office in home
    • Sale of principal residence

Businesses ::

Our services provided to business owners go beyond income tax compliance and include Management and Consulting services and a full-service Bookkeeping and Payroll department. The entities that we serve include:

  • S Corporations
    • Advise on eligibility requirements for S Corporation status
    • Assist with timely S-election
    • Assist in determining reasonable compensation for employees who are also shareholders
    • Assist in determining distribution amounts to cover tax liability resulting from S corporation ownership
    • Assist with a C to S Corporation conversion
  • C Corporations
    • Assist with inventory valuation for manufactured materials (including indirect costs)
    • Calculate domestic production activities deduction
    • Personal Service Corporations – Compute year-end profit which should be taken as wages by owners to avoid the higher PSC tax rate
    • Monitor accumulated earnings and advise on when a dividend is needed to avoid the accumulated earnings tax
  • Partnerships
    • Review and advise on content of Operating Agreements
    • Maintain client capital account balances
  • Limited Liability Companies (LLC)
    • Help determine which tax entity best suits the business activity
  • Sole-Proprietorships or Single-Member LLCs
    • Maximize business deductions available
    • Assist with quarterly estimated tax requirements
    • Assist with home office deductions
    • Advise on accounting system and record keeping requirements
  • Limited Liability Partnerships (LLP)
    • Review and advise on the content of Operating Agreements
    • Maintain client capital account balances
    • Allocate income and loss based on partnership agreement
    • Calculate self-employment earnings for appropriate individuals based on material participation
  • Limited Liability Limited Partnerships (LLLP)
    • Review and advise on the content of Operating Agreements
    • Maintain client capital account balances
    • Allocate income and loss based on partnership agreement
    • Calculate self-employment earnings for appropriate individuals based on material participation

Not-for-Profits ::

  • Preparation of Applications for Tax Exempt Status
  • Form 990 Preparation
  • Recommend best business practices and internal controls, and assist with developing guidelines
  • State Registrations to Solicit Contributions
    • Research and advise on reporting requirements for each state in which charitable contributions are solicited
  • Advise on Compliance with IRS Recommendations and Requirements
  • Unrelated Business Income Tax Return Preparation
    • Advise on business activities that will generate unrelated business taxable income and related tax liability
    • Prepare appropriate tax returns to report unrelated business income tax

Estate and Trust Tax Preparation and Administration ::

  • Form 1041 Preparation
  • Form 706 Preparation
    • Advise on the responsibilities of an executor, personal representative, or administrator of an estate, or of a fiduciary of a trust
    • Determine taxable effects of a distribution from an estate or trust to an heir, beneficiary, or other entity
    • Assist the executor in preparation of probate reports required by the Commissioner of Accounts for estates, including inventory and accountings
    • Advise the executor in determining whether to make the election to include a qualified revocable trust as part of the estate for income tax purposes
    • Assist the fiduciary in preparation of reports required for trusts to the Commissioner of Accounts

Homeowner’s Associations ::

  • Form 1120-H Preparation

Employee Benefit Plan Selection Assistance and ERISA Compliance ::

  • Form 5500 Preparation
  • Pension and Profit-Sharing Plans (including 401(k) plans)
  • Simplified Employee Pension Plans (SEP)
  • SIMPLE IRA Plans
  • Cafeteria Plans, Flexible Benefits Plans