In 1953, the United States' tax agency underwent a name change. The Bureau of Internal Revenue became the Internal Revenue Service, as it is still known today.
While many businesses turn to CPAs for their tax preparation and planning work, they aren’t the only option. Let’s talk about how working with an EA (enrolled agent) might be a better option for you.
Do you know that any income which a Non-resident happens to earn from outside the United States is not considered as taxable income? All sources of income for residents are taxable as per the existing Federal Laws.
By starting to gather your tax documents early, you give yourself and your tax accountant much more time to catch potential mistakes. If there are no complications, then you will end up filing early, which means that you will get your refund back much faster.
Do you enjoy watching the Academy Awards? If so, you can thank an accountant. Every year a team of CPAs spends more than 1500 hours hand-tallying the secret ballots of the members of the Academy of Motion Picture Arts and Sciences to bring you that big night.
There is a very good chance that you will be too busy with your business to remember to do your tax paperwork. This is where hiring an accountant will come in handy!
When it comes to your tax situation, an EA accountant is able to provide valuable guidance in a wide range of situations. This includes starting a business, renting a home for additional income, and selling or buying a home.
Did you know? An asset is any item this is owned by an individual or business entity, especially those that can be sold or liquidated into cash. Examples: cash, securities, cars, real estate, inventory or other property. Assets are equal to liabilities on a balance sheet.
There are many important documents you will need when it comes time to do your taxes. Make sure you hold on to anything pertaining to job-related moving costs, property taxes, donations, medical bills, childcare, and mortgage interest payments.
College graduates need not apply! Yep, that's right. While many accountants do have four-year degrees, training and certification, leading to an accounting career, it's possible without a formal degree.
An accountant with tax expertise can handle your company’s tax return and stay on top of any changes to the IRS Tax Code. The code is extraordinarily complicated and is changed frequently. In a 12-year span beginning in 2001, Congress approved nearly 5,000 different changes to the Tax Code.
So what exactly does the term enrolled agent mean? “Enrolled” means to be licensed to practice by the federal government and “agent” means authorized to appear in place of the taxpayer at an IRS hearing and represent them.
Considering two aspects, the sales forecasts and expense estimates makes cash-flow projections. The total revenue minus the total expenses ultimately determines cash flow.
Any time you get income from a long-term investment or selling capital, you have to deal with capital gains tax, but there are a variety of ways this can be minimized, which is why it's important to make sure you consult with your tax accountant.
The role of the EA accountant is to handle individual and business tax matters and represent their clients with the IRS should the need arise. The concept of the “enrolled agent” was first established in 1884.
Why work with a small business accountant? In 2016, new tax expensing and depreciation rules will take effect. These rules affect your options for deducting or depreciating equipment and machinery, and set new limits on both.
While you may be more than qualified to handle your own tax return for your family, it may not always be in your best interest. If you’ve experienced a major life event since the last time you filed, you may not be aware of the deductions and credits available to you.
Big tax-preparation franchises may spend a lot of money on advertising, but the truth is that they are generally ill-equipped to handle any level of complexity in your tax return. It's a better idea to seek the services of an enrolled agent if you have more complex taxes so you can be sure they're done correctly.
Buy a house this year. While the first-time homebuyer credit is no longer available, owning a home still offers many good tax breaks. Property taxes and points paid to get a lower home loan interest rate are deductible, as is interest on home equity loans up to $100,000.
If you’re not the kind of person who’s known for their ability to make fast and accurate mathematical calculations, you may approach tax preparation with a sense of dread. Rather than stressing out for a month or more, you can simply turn the process over to us.
In the early 20th century, it took between 20 and 30 days for the average American worker to earn enough to pay in full their annual federal, state and local tax bills. In 2016, it took 114 days to accomplish the same.
Are you aware of the difference between cash and accrual accounting? Under an accrual method, you generally report income in the tax year you earn it, even though you may receive payment in a later year. You deduct or capitalize expenses in the tax year you incur them, whether or not you pay them that year.
One of the benefits of hiring a business accounting service is that they can put you in touch with other similar small businesses! This can help you to expand your business; by getting in touch with still more clientele you can increase revenue through greater sales.
If you might be subject to the Alternative Minimum Tax (AMT), then your best bet is to hire a tax attorney. In general, paying the AMT makes your taxes significantly more complicated, necessitating a professional eye.
Do you have a home business or do work for your company at home a significant portion of the time? That could qualify you for a deduction for the expenses of maintaining a home office. An accountant can ensure you correctly file for this deduction.
We can handle your business needs. If you need performance evaluation, cost management, asset management, strategic planning, or any combination of these, we have the professionals that can deliver a superior product.
If you were unable to afford your full tax liability last year, thinking about your next tax deadline may be the last thing you want to do. Let’s talk about what went wrong with your last return and what changes you can put into action to avoid a repeat next time you file.
Avoid empty spaces on tax preparations like the plague to reduce audit risks. Even if a space does not apply to your return, mark it with a zero, a dash or an NA when applicable – filling every space is one technique of the trade that professionals use to eliminate risks for incorrect assumptions.
Do you file your taxes online for free with the IRS? This is a handy service if you have a very simple, straightforward tax return to file. To make sure you've got it all right, and to make sure you get all of the deductions you're entitled to, you might want to have a professional tax preparer review your return before you file.
Not all tax-deductible contributions need to be made by December 31 of a given year. There are some contributions that can be made up until April 15. Your tax accountant will be able to tell you if the window of opportunity is still open.
Since an enrolled agent specializes in tax law and has to pass stringent IRS exams, you might think they would be more expensive to work with than other types of accountants. Actually, depending on the complexity of your situation, it can often be cheaper to have an EA prepare your tax return.
It may seem cost-effective to do accounting tasks yourself – but include your own time in that equation. How long would it take to do your own business taxes? How much are you worth per hour – and is your time better spent elsewhere?
They say you should never take spiritual, medical, or financial advice from an unqualified source. What's the worst accounting advice you ever received from someone who didn't know better?
What does an EA accountant do? An EA accountant is authorized to prepare tax returns for any person or entity with tax-reporting requirements and represent taxpayers before the IRS in situations related to tax audits, collections and appeals.
A tax accountant can explain the audit powers of the federal government and the consequences of not paying your taxes. In 2010, the total amount owed in back taxes was $330 billion, according to the U.S. Government Accountability Office.
While CPAs are licensed by the individual states, EAs are certified by the IRS. EAs must therefore successfully complete the Special Enrollment Exam (SEE) administered by the IRS and all EAs must also pass a thorough IRS background check.
Double-entry bookkeeping is the accounting system where each entry to an account must have an equal and opposite entry to a different account – credits must equal debits, or it indicates an error.
Why would you need an Enrolled Agent? Because we are tax specialists, if you have a non-criminal tax matter, we can provide expert assistance to you. No tax questions are easy, but we take the time to analyze each client's situation and propose a workable solution.
Should you be working with an EA accountant? Yes, if you’re involved in any type of IRS audit or appeal. The role of the EA is to represent you, the client, to ensure you’re treated fairly and the IRS adheres to laws that protect taxpayers.
Do you know that the small business health care tax credit is a refundable entity? This means that you are entitled to a refund even if you have no taxable income.
Did you know that a tax accountant not only focuses on completing the previous year’s returns but also helps you to prepare for the future? They will be able to give you advice and guidance on how to reduce your tax burden for the coming year.
Did you know that ongoing education requirements are necessary to maintain Enrolled Agent certifications? Enrolled Agents are not only tax specialists, but with EA services you can be assured that all the info and advice you receive is based on the latest tax codes and regulations.
If you’ve recently moved to a new state or started a business, you may have a more complicated tax situation than you’ve ever faced before. Working with a qualified tax accountant can help you ensure that you understand the nuances of your tax reality.
The Enrolled Agent designation is given to tax professionals who have passed an exam given by the Internal Revenue Service as well as an IRS background check. The two-day exam covers all aspects of taxation. EAs are able to handle any tax matter and represent you before the IRS.
Do you plan ahead for major expenses? This is a good idea for bookkeeping purposes. You’ll be less likely to miss business opportunities, or have to scramble for a loan, if the expenses become unavoidable.
Every year, the tax laws are adjusted and changed, which can make it really hard to keep track of everything. Fortunately, tax accountants make it their job to keep on top of everything to help you find the maximum amount of deductions.
