FAQs Archive - Easy Street Accounting Services

Q: What should I know about taxes when moving to Florida?

Florida does not impose a state individual income tax on natural persons. Moving to Florida, however, does not automatically eliminate filing obligations in the state where the taxpayer previously lived. A taxpayer who moves during the year may need to file a part-year resident return with the former state. That state may also continue taxing certain income earned or sourced there after the move, including income from property, businesses, employment, deferred compensation, or other continuing connections. Changing residency involves more than obtaining a Florida address. The former state may examine where the individual actually lives, works, owns property, registers vehicles, votes, maintains professional relationships, and intends to make a permanent home. Taxpayers moving from a state with an income tax should maintain documentation supporting the date and facts of the move. Federal income tax still applies after moving to Florida. Florida businesses may also have responsibilities involving sales and use tax, payroll and reemployment tax, property tax, annual state filings, and local licensing requirements, depending on their activities. Individuals with significant income, business ownership, investments, or ongoing connections to their former state should consider working with a tax professional familiar with that state's residency and income sourcing rules for the year of the move.

Q: What records should a business provide to its accountant?

The specific records needed depend on the business and the services being performed. In general, the accountant should receive enough documentation to verify income, expenses, assets, debts, payroll, and owner activity. Commonly requested records include: Complete bank and credit card statements Loan statements and financing agreements Payment processor statements from systems such as Stripe, Square, PayPal, or similar providers Payroll reports and payroll tax filings Sales tax and other state tax filings Vehicle and equipment purchase documents Documents for assets that were sold, traded, or disposed of Details of owner contributions, distributions, and personal expenses paid by the business Health insurance and retirement plan information Vendor Forms W-9 and contractor payment information Business mileage records Prior year federal and state tax returns Formation documents and S corporation election records Correspondence or notices from the IRS or state agencies The IRS requires businesses to maintain records that support the income, deductions, and credits reported on their tax returns. Receipts, canceled checks, invoices, statements, payroll records, and other supporting documents should be retained for the applicable recordkeeping period.