Posted by Dina Burgess on May 13, 2015 in Business, Finance, Official Tax Preparation | Comments Off on What to expect in various tax services
Tax preparation is the process of preparing income tax returns for the client. It is often done by a licensed professional such as an attorney, certified public accountant or a tax preparation business that is unlicensed. Tax preparation professionals should provide reliability, value and deep technical knowledge and support. If you need to hire a professional or a firm to handle your tax preparation and returns, below is what you need to look for.
International tax; this is applicable to those who have business establishments abroad. The firm should be able to help you understand the latest transfer pricing regulations, help you manage expatriate workforce taxation and help you develop and implement strategies that will help you enhance savings at home and abroad.
State and local tax; the firm/ professional should be able to help you manage your taxes and should be able to deal with increasing aggressiveness among the tax authorities.
Strategic federal tax; the firm/professional should be able to help you in this area by keeping you updated with the latest tax laws and regulations. This in return helps you develop and come up with better strategies that meet business objectives in your organization.Tax compliance; the firm/professional should be able to help you with tax filing. Other added services in this area include, federal income tax returns, multistate tax returns and tax preparation.
Risk advisory services; this involves the firm/professional advising you on tax accounting and how to identify risk in business. They are also supposed to help you enhance your tax function and manage audits.
Compensation services; with their firm/professional should have a deep knowledge in compensation and benefits plans the firm should be able to help you manage costs, improve business efficiency and meet tax regulations.
In overall view, the firm should be able to provide the client with tax strategy, help in business planning, offer tax advisory services and help in tax compliance. As the business environment grows in the world, so does the governing laws for these business also grow. It is therefore very hard to keep up with the regulations. This is where the tax return professionals and their advice come in handy and help you stay compliant to these laws. You should however look for trusted professionals or firms in this field to avoid being scammed. The top 5 tax services in Northeast Atlanta that have been proven safe to use with no risk of being scammed include; Du Charme McMillen & associates, Charles T Almond tax payers, Colbert tax service, Marvin F Poer & Co and Perimeter tax advisors PC.
Posted by Dina Burgess on May 10, 2015 in Business, Finance, Official Tax Preparation | Comments Off on Managing Sales And Use Tax Audit: Why Your Business Might Be Targeted!
As a business owner, do you know what use and sales taxes are? If not, how do you know when and how to pay them? Most business owners, especially new ones tend to assume that paying sales and use taxes is not a big deal, believe u me, it is!
What is sales
You may assume that, sales tax is an additional cost paid at the register for goods you buy, however for a business it’s a bit more than that. State laws require businesses that sell goods and services (depends on the state), to collect taxes from consumer at the point of sale.
What is use tax
This is a type of excise tax levied by various state authorities. It’s assessed on tangible personal property bought by a resident or business for use, consumption, or storage regardless of where the transaction took place. What the heck does that mean? It means that you might owe use tax if sales tax was not paid at the time of purchase.
Moreover, managing sales and use tax audit can be a challenging process for many businesses. There are certain processes and steps that must be considered before an audit notification arrives at your desk. However, there are options available for you which can influence the outcome of an audit. As a business owner, you will have options to negotiate your assessment after the final audit assessment.
Before sales and use tax audit is conducted, one of the many questions that might run through your mind is why your business or company was selected for an audit. There are many different reasons why a business can be identified. Below are some common reasons for an audit they include;
• Sometimes state jurisdictions might target certain industries for an audit. These industries generally have complex or new taxing processes that might result into high chances of making mistakes along the way. Internet companies and service industries have been recent target of sales and use tax audit.
• If an audit done to one of your clients might result into a review of your business transactions and a determination that you are not charging taxes appropriately. Auditors will follow the trails and breadcrumbs back to you or your business.
• A disgruntled employee that knows you are not charging tax correctly in a jurisdiction may report you to a tip-line.
• A random drive-by past one of your locations, or recognizing a delivery truck or employee at a trade show in their jurisdiction by an auditor could result in an audit.
• Sometimes, unfortunately, audits are as a result of chances.
• State jurisdictions do communicate with one another, which can lead to an audit of your business.
Finally, once your business or company has been identified, you should expect regular audit cycle in future especially, if the initial audit findings were not satisfactory to the auditors. Despite the economic hardships, businesses should not roll over their tax returns and compliance. Do not let the auditors eat your business alive. You can protect your business from audits and non-compliance without breaking a bank.
Posted by Dina Burgess on May 6, 2015 in Finance, Official Tax Preparation | Comments Off on Common problems in Sales and Use Tax Audits
The number of audits on taxpayers has been increasing due to the desire of revenue departments to seize opportunities to revitalize their streams of revenue. Taxpayers have therefore become the target of sales tax audits. Some organizations are put on a sales tax audit rotation more frequently as compared to others due to differences in size and nature of businesses. There are some common issues that are found in these audits. However, it only takes sales tax audit best practices to determine more critical or hidden issues that are not easily noticed.
The first common issue is changes in tax rate. Sales tax audit best practices require an auditor to review sales transactions and determine if the right rate of tax was charged to the customer. It is very difficult for business people who have multiple jurisdictions to update their sales tax rate tables. Auditors examine these tables and determine if they are updated. Most businesses don’t usually have updated tax rates and therefore this is a common issue that is found in these audits. The auditors usually suggest ways of updating the tax rate tables and ensuring that only authorized personnel have access to the tables.
Use tax is another common issue found in these audits. Sales tax audit best practices requires auditors to review sales transactions of a business, review the purchases of the business and determine if they are subject to use tax. Most business usually purchase items for use in their activities and most of the time they purchase these form vendors who don’t charge them tax. Any item that is not qualified for exemption from tax is subject to use tax. The auditors ensure that they examine all the purchase items and whether they were taxed. If not taxed then the issues of use tax are identified.
Exemption and resale certificates are also common issues in sales tax audits. Some items are usually exempt from tax and a business must have a valid exemption or resale certificate to be exempted from tax. Auditors usually review the exemption and resale certificates of a business to determine if they are valid and if the process for obtaining the certificates was legal. Some auditors usually allow taxpayers to show a document stating that the item was exempted in case the exemption certificate is not on the file. The exemption certificate could also have expired and these are the common issues found by auditors.
Posted by Dina Burgess on May 3, 2015 in Business, Finance, Official Tax Preparation | Comments Off on Business taxation
Generally, the tax paid out depends on the form of business operation. Record keeping basically forms a basis for taxation. The tax law requires business to keep proper records explaining all the business transactions carried out as it operates. The following are the general types of business taxes:
Tax law requires that all business except partnerships to file an annual income tax. Partnerships usually file an information return. The form used purely depends on how the business is organized. The federal income tax states that you pay as you go; it means paying taxes as you earn or receive income during the financial year. It is calculated on assessable income less any allowable deductions. The assessable income refers to the income the business earns. It usually does not include Goods and Service Tax payable on sales made or on credits. The allowable deductions refer to certain expenses which are necessarily incurred in relation to the business.
A business is usually run by employees, and when you have employees, the employer has some certain employment tax responsibilities that he/she must pay and the relevant forms which are required to be filed. The common employment taxes include; social security and Medicare taxes, federal unemployment tax, and federal income tax withholding.
Value added tax (VAT)
This is a tax which is levied on consumer spending. It is collected via VAT-registration traders on their supplies of goods and services effected within the state for consideration to their customers. Each trader in the chain of supply through a retailer charges the tax on the sales and is also entitled to deduct from this amount the VAT paid on the purchases.
This is the tax which is charged on specific goods, or the tax on goods produced for sale which are particularly sold within a country or licensed for specific activities. It is considered as an indirect tax meaning that the seller or the producer who pays the tax to the government is expected to try to recover the tax paid by increasing the price at which the buyer gets the goods.
This is a type of tax which is charged on goods when they are transported across international borders. Custom duty helps authorities of a country to raise the state revenue and also protect their domestic industries from more efficient competitors from other countries. The custom duty is normally in a percentage form and is determined based on value of goods or upon the weight, dimensions, size, and some other criteria.
This is the tax charged on all the profits of business resident in a country, with some exceptions, and the non residents businesses that trade in the state through a branch of agency. The tax is charged on the company’s profits which usually include both chargeable gains and income. The business income for tax purposes is calculated based on the income tax rules and principles. The chargeable gains are calculated in accordance with the capital gains tax rules.
Posted by Dina Burgess on Apr 30, 2015 in Business, Finance, Official Tax Preparation | Comments Off on 3 Tax Audit Tips Every Business Owner Should Know to be ready for the taxman
When most business owners imagine going through a tax audit they panic and stress out. They fear that the taxman is going ti find a mistake that may be costly or they may end up in jail.
there is nothing to worry about if your records are clean and and tax payments are up to date. An audit is an thorough look at the records and receipts of a business.records. That should always be done and letting the taxman look at them shouldn’t be an issue.
Several businesses carry out audits yearly to ensure that the records are updated and everything is accounted for and to make sure there isn’t any internal theft.
Some 3 Tax Audit Tips Every Business Owner should know before being audited. These tips will help the tax audit process run smoothly but they wont prevent your business from being audited.
1. Have your accountant carry out internal audits yearly
Depending on your accountant’s method, ask them to carry out a thorough audit of the records and receipts. Ask them to make sure that everything is in order and tax submissions are up to date and recorded. This is a quick look at your records to clear out any errors and update any payments. A government audit will however, be more thorough.
2. Be consistent in your books
This is where it’s very crucial. If you’ve there is a small error and you can explain why it is that way, the government official might be lenient but if your tax submissions are not up to date, it might not be that simple.
3. Organization is key to audits
If your records are in order and well organized, it is easy to trace everything and will save you a lot of time of searching for everything that is required. If you don’t have an all-in-one system to track your money and clients it is highly recommended you purchase one. This will make the audit process simpler, faster and less stressful.
If you get a letter from the government or tax authority read it keenly and follow the instructions. Respond on time to make things easier and less stressful during the audit. Get in touch with your accountant and inform them. They may have some advice for you before the taxman arrives. It is also recommended that you become familiar with your business and its finances.
With these 3 Tax Audit Tips Every Business Owner Should Know, you should not panic and the taxman will always find you prepared to check your books.