4 Scenarios Where You May Want Assistance with Your Taxes

Tax Act

Let’s face it: taxation laws can be complicated. The average person has limited knowledge of things like mergers & acquisition, San Diego tax laws, management consulting, San Diego business formations and much, much more. Even if you have filed your own taxes before and have never sought assistance, there are some scenarios in life where you may want to find a consultant to help you transition and prepare your taxes accurately.

1) You’ve started your own business.

If you have recently started your own business, congratulations! This is a huge accomplishment that can reap big rewards. However, there are a lot of ins and outs to owning your own company, especially in terms of finances and taxation. In regards to advisory management, San Diego financial and legal firms are ready to assist you in creating a workable business budget, managing your financial assets and finding write-offs for expenditures that you are making for the company. America’s tax codes were originally written in support of small businesses, so a skilled tax and accounting specialist can help you learn how to use laws to your advantage as a new business owner.

2) You’re pressed for time.

Maybe you work for someone else, and your taxes aren’t very complicated. However, you simply don’t have the time to file your own forms and figure everything out. With the go, go, go rush of Southern California and/or the business world, accountants can come in handy. Find a certified accountant with a track record of success (check on the Better Business Bureau website) and a tax preparer identification number to get you started. With your W-2s, records of expenditures and any receipts you may be able to write off, an experienced professional can take much of the tax-filing burden off your back.

3) Frankly, you’re bad at math.

If formulas and equations get your head in a spin, there’s no shame in hiring an accountant. When it comes to the IRS and taxes, it’s better to be safe than sorry—hire someone who can help you understand your return or who can just do it accurately for you the first time.

4) Your finances have significantly changed in the past year.

If you own a company that bought out another in a merger/acquisition, this can change your tax responsibility. Or, if you have purchased new real estate or sold previously owned property, your tax codes may be different than last year. Even in the case of a new addition to the family, or the death of a loved one, you may be surprised to see that your tax liability could have changed significantly from the previous year. If you suspect that a major life change will affect your finances, call a taxation/finance specialist.

Jessica writes about a wide variety of topics.  She especially enjoys writing about taxes. You can learn more about mergers & acquisition san diego at http://www.allenbarron.com/

 

Tax Problem Resolution

Tax Act

There is that old adage that goes ‘two things in life are for certain, death and taxes.’ However, sometimes we run into difficulty and need some sort of resolution. There are several avenues available, notably, seeking advice from an enrolled agent, getting a tax attorney or hiring a debt counseling/resolution firm, to handle your tax situation.

It can be argued that tax law is not the easiest to comprehend, especially for the average citizen and one is not always able to decide which avenue to take to address a given tax issue. It is almost a surety that a tax matter involving the courts will force a citizen to go to a tax attorney. It must be noted that an enrolled agent is not able to give assistance at the level of the law courts but in other matters, agents can prove to be a cheaper option than the tax attorney. One should not be apprehensive when considering hiring an agent because these individuals are  tax resolution experts who must be licensed to practice.

Enrolled agents, like other professionals, must pass an exam to be able to practice. It must be understood that there is a limit on the number of individuals who can become agents. This is so because the Internal Revenue Service marks the test using a bell curve analysis method. Those who pass the test and find themselves in the upper quartile are considered. The Internal Revenue Service then allows these successful individuals to represent their clients before the Internal Revenue Service.

It should not be assumed that these agents are free to practice without some sort of rule book. There is a code of ethics that each agent must follow as laid down in Circular 230; a document that provides guidelines for those enrolled agents who wish to practice.

These enrolled agents are implored to defend their clients with zeal and sincerity and it should be mentioned that most of them do try to execute their jobs in a professional manner. There is still one difference between enrolled agents and tax attorneys. It is important to know the difference or differences when making a decision pertaining to who is best placed to assist you with your tax problem.

The enrolled agent is trained to do anything a tax attorney would do. The major difference is that the enrolled agent cannot go to court and defend a client. Fortunately, the law court is not the only institution where tax issues are solved and the norm is for only severe tax cases to be referred to the law courts. It should be clear that in severe cases involving criminal investigation, one should seek the services of an experienced tax attorney.

There are also some differences between enrolled agents and credit resolution firms as well. In general, credit resolution firms do not find resolutions to your tax problem. These firms are concerned with matters of credit. The enrolled agent is the one you need to solve your tax problems.

Do You Need to File a Tax Return?

Tax Act

Do You Need to File a Tax Return?

Most American citizens need to file a tax return but there are some individuals due to age, filing status and income that are not required to do so. An example is a married couple filing jointly that earned less than $17,900 during 2008. The exception to the rule is if one of the individuals is self employed. Self employed individuals always need to file a return if they earned over $400 for the tax year.

Choose to File

If you contact a tax specialist or call the IRS and determine that you … Read more at 2009 Taxes

Tax Act

Do You Need to File a Tax Return?

Most American citizens need to file a tax return but there are some individuals due to age, filing status and income that are not required to do so. An example is a married couple filing jointly that earned less than $17,900 during 2008. The exception to the rule is if one of the individuals is self employed. Self employed individuals always need to file a return if they earned over $400 for the tax year.

Choose to File

If you contact a tax specialist or call the IRS and determine that you do not need to file a return there are cases where you would want to file a return anyway. For instance, if you paid taxes to the federal government through payroll deductions and are expecting a refund. Other cases include if you are eligible for the Recovery Rebate Credit, if you can claim the Earned Income Credit, or you are a first time home buyer and eligible for a tax credit.

2 Important Changes in the Tax Law this Tax Season

Tax Act

2 Important Changes in the Tax Law this Tax Season

The Standard Mileage Rates for travel in 2008 have improved to help compensate for higher gas prices experienced during the year. While the Kiddie Tax has been adjusted to include more children.

1. Standard Mileage Rates Change

The only standard mileage rate to not change is the mileage rate for volunteer travel. But all other forms including business and medical travel have increased. The mileage rate for business travel increases to 50.5 cents a mile for the first half of the year while the second half of the year gets … Read more at 2009 Taxes

Tax Act

2 Important Changes in the Tax Law this Tax Season

The Standard Mileage Rates for travel in 2008 have improved to help compensate for higher gas prices experienced during the year. While the Kiddie Tax has been adjusted to include more children.

1. Standard Mileage Rates Change

The only standard mileage rate to not change is the mileage rate for volunteer travel. But all other forms including business and medical travel have increased. The mileage rate for business travel increases to 50.5 cents a mile for the first half of the year while the second half of the year gets a very favorable 58.5 cents a mile. The medical travel rates have similar increases with the first half of the year being 19 cents a mile while the second half of 2008 increases to 27 cents a mile.

2. The Children Investment Tax Have Been Changed

The so called “Kiddie Tax” has expanded to include older children and not just children younger than 18 years old. If your child is 18 years old and did not provide for at least 50% of their support during the year they will now have to have their investment income taxed at the parents tax rate. Or if you child is 18 to 24, a student, and did not support themselves above 50% of needed funds they will also have investment earnings taxed at the higher parental rate.

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