Hiring A Tax Accountant – Advice From An Expert
June 14, 2010 by Taxcut Editor
Filed under Personal and Business Taxes
There are all sorts of accountants in the world today. Some of them are allowed to work for the IRS itself and are permitted to electronically file your tax return, while some of them have little to no official training and are really just glorified book keepers. A variety of them work on behalf of individuals, others with businesses, still others perform tax returns, while others do not even touch tax returns. It may prove to be a difficulty, locating a reliable tax accountant, although simply tracking down a person to file your tax returns on your behalf is not so difficult. Tracking down a tax accountant who is officially sanctioned by the IRS is the most critical part. Since people who prepare taxes are out there without any official license, busily plying their trades, sometimes it is hard to discover if your accountant is the one in which you should have faith. In order to side step any undesired scrutiny from the IRS, you should seek out an officially sanctioned IRS tax preparer to handle your electronic over the Internet filing. Such tax filers are put through intense criminal background checks by the IRS. It goes so far as to fingerprint them and keep these fingerprints on hand. Furthermore, they investigate such tax preparers’ business history with regional area officials, as well as the tax preparer’s individual tax return. To select a tax accountant, interview several. Set aside an hour to speak with your potential accountant regarding their business history. You will specifically ask them about their audit record. Ask if they have personally been audited or if their clients have ever been audited. This meeting should be a courtesy; no charge should be incurred. Don’t hire someone before you’ve talked to at least three accountants. Make sure the person you hire is comfortable answering all of your questions and seems confident and competent. Anyone can hold it together during a short interview. The accountant you’re interviewing will likely look the part, and can probably talk the talk as well. That doesn’t mean they are as good as they seem. Rather than be fooled, resolve to run your own background check on your potential accountant. Start by Googling their name. Are there client reviews posted? Were people satisfied? Check the Better Business Bureau as well. Has anyone filed a complaint? See what you can find out about their past work record and their standard practices with clients. It may seem like spying, but you’re better safe than sorry in cases like this. Since you will be opening up all of your darkest financial secrets to such a person, you should make certain that you track down a reliable tax accountant on whom you are able to rely. After all, should the IRS come looking to audit you, these are the people who will be your advocates before them. Just because you have complete confidence in such a tax accountant, this does not signify that you ought to simply walk behind them like a sheep, signing off on anything that they put in front of you. Ultimately, you are the only one fully responsible for the data on your own tax return, despite whoever got them ready and filed them on your behalf. Regardless of how strongly you believe in your tax professional, you ought to go through all of the papers which they want you to sign in advance of simply putting down your John Hancock on the bottom line.
If you liked this, try : Sydney Tax Accountants
Related posts
The earlier you file your taxes, the sooner you get your return
February 9, 2010 by Taxcut Editor
Filed under Personal and Business Taxes
Tax time coming soon
One of the easiest ways to find money now is to get a jump on filing income taxes. Many consumers wait until April to start gathering their paperwork together. They bring them to their tax preparer and want a rush job. The problem with waiting is that it opens the door for mistakes and it makes the time to get a refund that much longer. Anyone wanting to get the jump on filing, here are some tips.
Getting the jump on taxes
The first thing taxpayers need to be aware of is Schedule M. Schedule M is a new tax document that is used to account for the “Making Work Pay” credit money received on paychecks. The new payroll tables from last year that put an extra $ 400 in the pockets of single people or $ 800 for married couples filing jointly. For some taxpayers, however, they may have paid too much into the fund. To correct the over taxation, consumers have to file a Schedule M.
Secondly, you have to get your paperwork together. January to mid-February is when W-2s and other tax-related documents start coming in. Consumers should create a special place for all tax documents. The requisite information for these documents and getting it all together at once will make it easier to finish tax paperwork.
Thirdly, you have to double check things like social security numbers. Though it sounds rudimentary, there are a surprising number of tax returns received without the correct numbers. It holds up processing and refunds for thousands of filers. The correct number is critical, because a lot of transactions are directly tied to them. Everything from income statements to retirement plan contributions are recorded based on the social security number.
Fourthly, you need to know what filing package is the best to get. The IRS package is based on the filing history of a taxpayer, but that can change. Many documents are accessible online or at the library of post office. For taxpayers who had a major change, like marriage, it’s important to find the right documentation. Married couples looking for money now have to file with the right documents and in the right way.
Fifthly, think about electronic filing. Studies have shown that last year about two-thirds of all taxpayers filed electronically. The IRS processed E filed tax returns 50% faster than paper returns. Many of the software programs have a review function, where the return is double checked for innaccuracies and errors. The good news for E-filers is that taxpayers may qualify to file for free. Taxpayers this year with adjusted gross income of $ 57,000 or less for 2009, can file for free thanks to a cooperative program between tax software companies and the IRS.
Finally, taxpayers can elect direct deposit. A paper return takes weeks to get to the IRS, get processed, and a check to be cut and then sent. Conversely, it usually takes 10 to 14 days for a direct deposit to get to a bank account. Taxpayers that desire direct deposit have to file Form 8888, but it speeds up the process.
Filing in 2010
Now more than ever, filing tax returns is being made simpler and simpler for taxpayers. Those who want their tax return money now should follow the above tips to speed the process up. There are millions of tax returns that have to be reviewed and consumers looking for quick ways to file should use every advantage available.
Related posts
The Lesson in Tax Practices, Part 6: Tax Law and The End of the Roman Empire
December 17, 2009 by Taxcut Editor
Filed under Personal and Business Taxes
W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
Mithridates the Great ruled a small country near what is currently known as Turkey. He had an extraordinary ability to rouse discontent with unhappy taxpayers. In 88 BC he organized a rebellion against the Romans. By promising 5 years of tax exemption to each city that joined his rebellion, he gathered substantial help.
The Roman Senate quickly took swift action and told General Sulla to raise an army and restore Roman rule in the rebellious area. Sulla was victorious in suppressing the rebels, but only following a four year struggle. When the revolt was crushed, Sulla told the leaders of the disgruntled cities to meet him at Ephesus. At that place the citizens were to denounce the five years of back taxes and pay the general for his war debt.
To make sure the tax was collected, Sulla instituted “special agents.” These special agents were given the ability to scourge and kill, which was enough to cause most taxpayers fall in line. Up until this time there had been self-assessment tax collections, private tax collection, military tax collection and the traditional government tax collectors. However, these new “special agents” were very skilled specialized men with the ignorance of bureaucrats and the power of military executioners. Taxpayers lost any hope to evade. If you are feeling the pressure with today’s taxes, call a Tax Preparer in Cary, NC for all your tax-related needs!
Special Agents have emerged time and again in the course of history, surviving in the modern age as “fiscal police” or simply “special agents”, using the title first given by Sulla over two thousand years ago. As the practice of Sulla’s special agents was put in to place in other provinces, soldiers came to realize that the rich spoils of war came from their commander, not the Roman Senate. Roman generals returned to Rome with the blind loyalty of their soldiers. Great civil wars started as rivalling legions fought. With these semiprivate armies, establishment of a military dictator was inevitable. So, the Roman Republic dissolved. Kings, dictators, and generals would now rule for the next 2000 years. Democratically designed governments and republics wouldn’t see a large role in civilization again until the 1800s. Go here if you want help with modern-day Tax Preparation in Raleigh, NC.
Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Taxes and the American Revolution.
http://www.marccpa.com/
Related posts
Tax Deductions for Home Based Businesses
December 7, 2009 by Taxcut Editor
Filed under Personal and Business Taxes
Economic recession has forced many people who have been laid of to go in business for themselves. New home based small business owners ar not aware of all the tax deductions that apply to them. Your business can be located in an apartment, condo, mobile home or a boat and still qualify for the home based tax deductions.
There are certain requirements that a home based business should meet.
- You should dedicate a part of the home exclusively as a place of business.
- The part of the home has to be identifiable.
- You should be using your home for business regularly.
- You should be meeting your clients in that part of the house.
- You can have other places of business but your house should be the primary place.
If you are following the above requirements, you qualify for a home business tax deduction. As with every deduction listed in the Internal Revenue Code, there is a deduction limitation for home based businesses.
Deductions can only be taken for the percentage of home used for business. For e.g. If you use one room in your 2 bedroom apartment, the business use of your home is 50%.
There are few misconceptions about home business deductions that are floating around. The most common one is:
- Non-deductible personal living expenses can be deducted as business expenses.
Not true, IRS says that non-deductible living expenses are never deductible. For e.g. Having a coffee in your room that you primarily use for business.
Rule of thumb is to save all your receipts for at least 5 years. Home based businesses have a higher probability of being selected for an audit and you should always be able to substantiate your claims. Please consult with your tax preparer for more information.
Related posts
A History of Tax Practices, Chapter 5: Tax and Romans
December 4, 2009 by Taxcut Editor
Filed under Personal and Business Taxes
W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
Now that we’re getting away from Greece, we finally are at the Roman Empire. Scholars usually refer to Roman taxation as “more or less legal robbery” and Roman tax collectors as “a bunch of thugs.” However, Roman tax law was not always bad. There was a two hundred year period at the zenith of the Roman Empire when taxes were modest. Actually, every kind of tax, as well as no taxation, marked the Roman period. Taxation was as vital but as unpredictable in the Roman Empire as were the legions, the Senate and the Caesars. The arguably insane emperor Nero once advised to get rid of every indirect tax and make a “beautiful present to the human race.” If you’re feeling the pressure with today’s taxes, call a Tax Preparer in Durham, NC for all your tax-related needs!
Romans – The Early Years
The early Roman Republic required little taxation because it operated with free labor. The army, which is arguably the most expensive operation in every society, was a citizen’s military, composed of land-owners who served for one year without pay. They even brought their own uniforms and gear. This level of volunteer free public service extended to most government offices. Even the judges worked for the government for free. It is difficult to understand the validity of this ancient practice, especially in our individualistic society, where nobody seems to want to lift a finger for the government without a fat paycheck. Go here if you want help with modern-day Tax Preparation in Cary, NC.
The best way to reduce heavy taxation is to instil in all citizens a spirit of selfless service for the greater good. It isn’t needed to curtail public programs and services; what is necessary is the curtailment of the spirit of gain and profit that infests public figures and contractors.
The Romans, similar to other ancient civilizations, used the great men of their civilization to deal with tax law. Taxpayers loved and admired these men, and no doubt the integrity of these important men rubbed off on the taxpayers. In contrast, modern tax practices use professional public relations officers to manipulate taxpayers with advertising campaigns that play on fear more than integrity. Trouble began, however, when Roman armies lived off of the people and collected tribute in block form called “stipendium”.
Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Taxes and the American Revolution.
http://www.marccpa.com/
Better Business Award GOLD Star to New Century Tax Consultants, our team of Expert Attorneys, CPA's, and Tax Practitioners.
The Taxcut Editor recently visited the Green Festival in Denver, see what he had to say.
