Diversified Financial Solutions

Diversified Financial Solutions Diversified Financial Solutions
Keeps Your Finances Secure Diversified Financial Solutions, formerly known as T.J.

Fitzpatrick and Company, was founded in 1949 by Paul Fitzpatrick's father as a traditional CPA firm offering accounting, auditing, and tax services. Since Paul took over in 1984, we have been servicing the surrounding Greater Waterbury, CT, area from our offices in Southbury and Naugatuck. The firm has developed over the years by adding business consulting, Estate and Probate accounting and tax services, and live and after-the-fact bookkeeping services.

Pass-through entities generally don’t owe federal income tax at the entity level, but they still must file federal incom...
01/29/2026

Pass-through entities generally don’t owe federal income tax at the entity level, but they still must file federal income tax returns. These entities include partnerships, limited liability companies treated as partnerships for tax purposes and S corporations. If your pass-through entity uses the calendar year for tax purposes, as most do, the filing deadline for the 2025 tax year is March 16, 2026 (because March 15 is on a Sunday). The deadline can be extended to Sept. 15, 2026, by filing for an extension by March 16. If you do that, you (and any other owners) will also likely also need to file an extension to Oct. 15, 2026, for your individual return. Call us at (203) 264-3131 to get things rolling.

The IRS considers a paper return that’s due April 15 to be timely filed if it’s postmarked by midnight. Sounds straightf...
01/28/2026

The IRS considers a paper return that’s due April 15 to be timely filed if it’s postmarked by midnight. Sounds straightforward, but let’s say you mail your return with a payment on April 15, and the envelope gets lost. You don’t figure this out and refile until a couple of months later. Despite your efforts to timely file and pay, you can still be hit with both failure-to-file and failure-to-pay penalties. One way to minimize this risk is to use certified or registered mail or an IRS-approved private delivery service. A better way is to work with a tax professional who’ll e-file your return and help ensure you claim every break you’re entitled to while staying compliant with tax law. Contact us at (203) 264-3131 to start your 2025 return.

Every year, many taxpayers experience damage to their homes or personal property from storms, floods, wildfires or other...
01/27/2026

Every year, many taxpayers experience damage to their homes or personal property from storms, floods, wildfires or other disasters. For 2025 income tax returns due April 15, 2026, personal casualty loss deductions are generally limited to those due to federally declared disasters. But, effective for losses occurring on or after Jan. 1, 2026, eligible disasters also include certain state-declared disasters. Even when the cause of a loss qualifies you for the deduction, additional limits apply. For example, your deduction is reduced by insurance proceeds received, a 10% of adjusted gross income floor applies, and you must itemize deductions. Contact us at (203) 264-3131 for help determining if you’re eligible.

Bookkeeping software helps small businesses track income, reconcile accounts and generate reports. But technology can’t ...
01/26/2026

Bookkeeping software helps small businesses track income, reconcile accounts and generate reports. But technology can’t replace professional judgment or real-world experience. An outside bookkeeping or accounting professional adds context and clarity to your company’s financial data. We can help you interpret results, stay compliant with changing tax laws, manage cash flow and make smarter business decisions. Contact us at (203) 264-3131 to turn your financial data into a strategic plan that drives growth.

With 2025 in the rear view mirror and the tax filing deadline on the road ahead, it’s a good time for businesses to star...
01/22/2026

With 2025 in the rear view mirror and the tax filing deadline on the road ahead, it’s a good time for businesses to start gathering information about their deductible expenses for 2025. But what’s deductible (and what’s not) might not be as clear-cut as you think. Most business deductions aren’t specifically listed in the Internal Revenue Code (IRC). The general rule is what’s stated in the first sentence of IRC Section 162, that you can write off “all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.” In addition, you must be able to substantiate the expenses. We can help you determine what you can deduct on your 2025 tax return. Contact us at (203) 264-3131.

Have you considered an employee stock ownership plan (ESOP) for your business? An ESOP is a form of qualified retirement...
01/21/2026

Have you considered an employee stock ownership plan (ESOP) for your business? An ESOP is a form of qualified retirement plan. More specifically, it’s a profit-sharing plan that allows employees to own shares of their employer’s company and cash in those shares when they retire or otherwise leave their jobs. Many small to midsize businesses have implemented ESOPs because of their exciting advantages. But ESOPs do present some hurdles to clear. Please contact us at (203) 264-3131 to learn more about whether an ESOP might be right for you.

There are many personal rewards for taking care of an elderly relative. You could also be eligible for tax breaks. For e...
01/20/2026

There are many personal rewards for taking care of an elderly relative. You could also be eligible for tax breaks. For example, if the person qualifies as your dependent and you itemize deductions on your return, you can include any medical expenses you incur for him or her along with your own when determining your medical deduction. If you aren’t married, you may qualify for head-of-household status, which has a higher standard deduction and in come cases lower tax rates than single filer status. You may also qualify for the Credit for Other Dependents or the dependent care credit for costs you incur for the individual’s care to enable you (and your spouse, if applicable) to go to work. Contact us at (203) 264-3131 with questions.

For small business owners, investing in new equipment, expanding facilities or launching a new product can be a big deci...
01/19/2026

For small business owners, investing in new equipment, expanding facilities or launching a new product can be a big decision. With limited funds, it’s essential to pinpoint the opportunities that deliver the most value. Financial models like accounting payback, net present value and internal rate of return offer a disciplined, data-driven approach to evaluating your options. We can help you apply these models to make confident, informed capital-budgeting decisions that fuel long-term success. Call us at (203) 264-3131 to get started.

It’s not unusual for a partner to incur expenses related to the partnership’s business. This is especially likely to occ...
01/15/2026

It’s not unusual for a partner to incur expenses related to the partnership’s business. This is especially likely to occur in service partnerships such as an architecture or law firm. When a partner can be reimbursed for business expenses under a partnership agreement or standard operating procedures, the partner should turn them in for reimbursement. Otherwise, the partner can’t deduct the expenses on his or her tax return. On the partnership side, the business should have a written firm policy that clearly states what will and won’t be reimbursed, including home office expenses if applicable. (This applies to members of LLCs that are treated as partnerships for federal tax purposes.) Contact us at (203) 264-3131 if you have questions.

If you’re a nonresident alien (that is, you’re neither a U.S. citizen nor a U.S. resident) but you live part of the year...
01/14/2026

If you’re a nonresident alien (that is, you’re neither a U.S. citizen nor a U.S. resident) but you live part of the year in the U.S. and own property here, there’s good news and bad news in regard to estate tax law. The good news is that you’re subject to U.S. gift and estate taxes only on property that’s “situated” in the U.S. Also, you can take advantage of the $19,000 gift tax annual exclusion. The bad news is that your estate tax exemption drops from $13.99 million to a minuscule $60,000. So substantial U.S. property holdings can result in a big estate tax bill. Contact us at (203) 264-3131 for more information.

Are you a taxpayer age 62 or older who needs income and owns a home that has appreciated greatly? A reverse mortgage may...
01/13/2026

Are you a taxpayer age 62 or older who needs income and owns a home that has appreciated greatly? A reverse mortgage may be a solution. With one, you can raise needed cash without selling the home and also take advantage of the tax-saving basis “step-up” rule. The federal tax basis of a capital gain asset owned by a person who dies, including a personal residence, is stepped up to fair market value as of the date of the owner’s death. If your home’s value stays about the same between your date of death and the date your heirs sell it, there will be little or no taxable gain because the sale proceeds will be nearly or fully offset by the stepped-up basis. Call us at (203) 264-3131 with questions.

Address

100 Main Street North, Suite 204
Southbury, CT
06488

Opening Hours

Monday 8:30am - 5pm
Tuesday 8:30am - 5pm
Wednesday 8:30am - 5pm
Thursday 8:30am - 5pm
Friday 8:30am - 5pm

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