Tax time is just around the corner, and some people have already started their Income Tax Planning in Melbourne FL. Someone filing a 1040EZ form may not need to do much planning. In fact, until they get their W2s there’s really not much for them to do.
However, anyone with more complex tax implications will need to plan as early as possible. In addition, they may need to hire an accountant to ensure that everything is done properly. Here are some things to consider for professional tax preparation.
CPA vs. an Accountant
Many people believe that a CPA and an accountant are the same thing, but they aren’t. A CPA is licensed in the state in which they work. This means that that part of their training focuses on income tax planning in Melbourne FL, rather than general taxes. For a business, this ensures that local taxes are appropriately paid, in addition to the federal taxes, which an accountant will be more familiar with.
A CPA office is usually open year around as well, while accountants usually only work through the tax season. Not only do CPA’s provide tax services, but they are open for business to audit books, provide support and advice through an IRS audit and to help a new business set up all of their tax and payroll affairs to be compliant with local laws.
Properly File Taxes
It is important for someone to file their taxes according to the law. But, the tax laws are so complex, particularly for businesses, that it’s easy to make a mistake. The IRS doesn’t make a distinction between mistakes and purposeful fraud when a tax return is filed, the same fines apply either way. Working with a professional can eliminate mistakes, which ensures that no fines are levied against the filer.
There are quite a few allowances in the tax code for deductions, but the complexities often preclude the average person from taking advantage of them. A CPA can point out where a deduction should be taken, and when one shouldn’t. This could mean lower tax fees or even a tax return.
If you have taxes that are beyond spending 20 minutes on the computer filling out a form, then you might want to speak with a CPA. Schedule an appointment today to determine whether or not a CPA is right for your upcoming tax filing.