Did you know that EAs are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS? Consulting an EA about tax matters makes good financial sense for your business.
Have you ever taken a quick look at the IRS Tax Code? It contains about 4 million words, making it almost seven times as long as “War and Peace,” according to experts. When you hire an accountant, you don’t have to worry about keeping track of the yearly changes to the Tax Code.
It’s important to remember that the tax preparers at most tax services won’t be held responsible if they give you incorrect information during your appointment. Working with the same person who’s authorized to represent you with the IRS can help you ensure you’re getting tax advice that we’ll stand by.
One of the biggest myths associated with tax accountants is that they only handle tax returns. Tax accountants can work full time for companies and be responsible for audits, record-keeping and tax planning, based on yearly changes in tax laws, among other duties.
If you or your company is looking for a tax expert, an accountant who also is an enrolled agent is an excellent choice. In order to become an enrolled agent a person must pass a comprehensive test on the IRS Tax Code or have at least five years of experience working for the IRS.
When tax rates changed in 1913, two rates were assigned based on net personal income. Those with net personal incomes under $20,000 were taxed at 1%, while those with net personal incomes more than $500,000 were taxed at 7%.
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.
Infamous gangster Al Capone was captured using evidence gathered by an undercover agent from the IRS Intelligence Unit. He was sent to prison after being convicted of tax evasion.
Tax code allows for companies to depreciate equipment as it ages. Accountants use mathematical models to estimate how much each company should put on their tax return.
A tax accountant generally studies accounting in college and may continue in graduate school to earn a master's degree in accounting or business. For an accountant to be certified, he or she must pass a challenging exam put together by the American Institute of Certified Public Accountants.
Be careful when looking for an accountant, especially if you limit your search to online services. There are many software applications that allow almost anyone to perform certain tasks, but that does not mean the software is taliored to your specific needs. Make sure the accountant you work with is qualified and has the credentials to prove it.
Do you know that investing in the stock market can be a great way to capitalize on your savings? However, there are complicated laws along with it. Best to get tax advice from a professional.
Did you know that the fees you spend having your taxes professionally prepared can generally be deducted on Form 1040 (as long as you itemize)? Your tax preparer will help you figure out if you qualify for the deduction.
The first and most important step in finding the right accountant for you is determining what you want the accountant to do for you.
An Individual Retirement Account, or IRA, allows you to put pre-tax income into an account without incurring any tax repercussions until retirement. If you have an IRA, you will want to bring your IRA statements with you when you visit your accountant.
If you have made upgrades to your home or other structures that have improved their energy efficiency, you may be eligible to take deductions on what was done. In addition, if you have invested in certain energy efficient appliances, deductions may apply for them also.
Fun Fact: International Accounting Day, every November 10, hearkens back to 1494, when Luca Pacioli wrote a book titled "Summa de Arithmetica, Geometria, Proportioni et Proportionalita" (Everything About Arithmetic, Geometry and Proportion). He's known as the Father of Accounting.
Did you know that if there’s been a drop in market value on your business’s inventory, you may be eligible to claim additional deductions, depending on your accounting methods? We can help you explore various ways of easing your tax burden.
Most accounting positions require at least a bachelor’s degree in accounting, however larger firms may prefer or even require people to have a master’s degree before considering them for employment.
Every year new credits and deductions are approved or phased out and no longer available to taxpayers. Part of an accountant’s job is keeping track of the latest changes in tax laws so that clients file for only those credits and deductions they qualify for and that are still on the books.
A Pew Foundation study found that the average American holds a more positive view of small businesses than they do of colleges, and they value their impact on and importance to the local, regional and national economies.
There are distinct differences between a financial planner, accountant and Enrolled Agent. While a financial planner can give you advice on investments, an accountant or Enrolled Agent can advise you on the tax repercussions the investments will bring, and an EA can speak to the IRS on your behalf.
