CPA will solve your Tax calculation problem for small business
Due to the needs of government, as well as of businesses, tax laws have become complicated through the years. Nowadays, if you run a business, it may be necessary for you to seek help in preparing tax returns.
Types of Tax Professionals
There are several types of tax professionals. These include lawyers, actuaries, enrolled agents, Certified Public Accountants (CPA), financial planners, and accountants. Tax preparers including CPA Westchester are regulated but not licensed by the IRS. Certification for tax preparers is not required, however, the IRS has requirements for some preparers. That means that tax preparers can be penalized for not disclosing who prepared the tax return, for not being able to give the taxpayer a copy of the tax return, and for any negligence during the preparation of the return.
A Certified Public Accountant
A CPA is someone who has passed a state qualifying examinations, or certification. Not all CPAs are qualified as tax preparers. In addition to the CPA exams, he should have some tax training to enable him to handle individual and corporate tax filings. Before getting the services of a CPA, you should need to ask about his qualifications as well as a client reference. Besides tax preparation, a CPA can handle your bookkeeping, accounting, estate and financial planning.
Hiring good CPA
A good CPA is not hard to find. What is hard to find is the right CPA for your business. Among the qualifications you would want for your CPA is someone who has worked or prepared tax filings for the same line of business that you are in. This would be particularly true for some industries and businesses with lots of regulations, exceptions, or possible tax exemptions. For the rare company which has multiple holdings or multiple companies, which would mean multiple sources of income, the CPA should be familiar with the pertinent IRS guidelines and tax rulings.
For single proprietorships, or entrepreneurs with small office/home office setups, they can have friends or colleagues in the same line of business refer an accountant to them. Referrals would be an easier way of finding the right accountant.
One other consideration is how aggressive the accountant is when it comes to deductions. The IRS might see an aggressive nature in deductions as a red flag to audit your company. On the other hand, a CPA who is not aggressive enough might not be finding the right deductions and exemptions which can help you better run your company.
Another important question to ask an accountant is the availability. A tax preparer does not need to be present the whole year, however, meetings should be held, as well as consultations. There would be some questions in treating expenses or other possible tax deductions. These do not happen very often, however, when they do, the company owner should be able to ask for assistance from the CPA Westchester at any time.
How IRS solve your tax problem
The IRS has made efforts to simplify filing, and in so doing enable better tax collection. One of their initiatives is the electronic filing of tax returns for qualified taxpayers. The electronic filing was an initiative of the Free File Alliance, in partnership with the IRS. There have been other attempts at electronic filing, including sending qualified tax payers a draft of their filings. Not all of these proposals have gone beyond the proposal and testing stage.