Going through the tax woods can be daunting for some, especially if they do not have full grasp on the concept. Here are the top reasons why hiring a professional to take care of your Kissimmee tax return works to your advantage.
A Software Is Not As Good As A Tax Pro
DIY tax software’s are only designed to take care of half of your Kissimmee tax return. And that too for returns that do not come with some out of the ordinary financial situation. A software program cannot view all of your choices and which will help you reduce your tax liability. You need a Kissimmee tax return professional to help you with that; someone who can review the situation with you and answer any of your questions.
On A Personal Front
Any time that you are faced with an unusual situation like getting an inheritance, having to buy or sell major property like real estate, or royalty income. In all these cases it is very much likely that even if you use ace tactics on DIY taxes, you will need guidance from Kissimmee tax return service in an area or another.
If You Own A Business
If you own a business or are in a partnership with someone. It is imperative that you do not merely rely on your DIY skills or a computer software. This is because in a business, getting done with your Kissimmee tax return is not all that you might be facing. There are many queries that can come up during a financial year and you may not be able to solve them.
You need a Kissimmee tax return professional relationship with someone you can consult on this matter. Rather than running the risk of making errors. Plus accounting and handling Kissimmee tax return can bite a chunk of your time. As a business man, it distracts you from doing other important tasks for the well being of the business. If you are pondering over your accounts thinking where you made an error, you are wasting your time. Might as well just hire a Kissimmee tax return professional.
Nothing beats this. Not even a computer. Think about it, not everyone stands in the same situation as everyone else when it comes to their tax return situation. Therefore, anything can come up in your financial stance which you may not be able to solve. A Kissimmee tax return professional can not only guide you but also warn you of any possible repercussions that your actions (regarding tax returns in Kissimmee) may cause. Not everyone has the background experience and the skills of a CPA or an enrolled agent who has worked at the IRS.
Your Attitude Towards Numbers
If you are one of those people who cringe at the mention of lots and lots of numbers and figures. Handling Kissimmee tax return and being answerable o the IRS can stress out many people. People like that should not even bother with doing their taxes themselves. It would give them the peace of mind if someone else did their taxes.
How To Find The Perfect Tax Return Professional In Kissimmee
Hiring someone to handle your or your business’s finances is a major task that needs to be done with utmost professionalism. There is no reason for you to rush things. Here is everything you need to know when it comes to finding a professional for Kissimmee tax return.
You have the choice between a CPA and an enrolled agent. It is entirely up to you which you choose. CPA’s are professionals who have passed the state exam. However not all professionals with this qualification are good at working on income tax. Therefore if you are looking for a CPA who needs to handle your Kissimmee tax return, you might want to question him or her about their professional experience.
Enrolled agents or more commonly known as EA’s in Kissimmee are Kissimmee tax return professionals licensed by the IRS through a specific exam. Plus individuals can only take this exam if they have worked for the IRS. EA’s mostly specialize in a certain tax area. Remember to inquire what it is before you shortlist them.
Start with referrals. You don’t necessarily have to ask people from your close circle. If you ask your colleagues they will most likely refer you to someone who they have had a good experience with. If that does not work out then look up review sites online for a Kissimmee tax return professional.
You may have a list of shortlisted agents by your side make sure that you ask a few things before you hire a Kissimmee tax return professional.
Do a Background Check
Check the company background for which the Kissimmee tax return professional is working for. This includes licensing issues as well. The IRS suggests that a tax preparer has PTIN. This is a number that the government issues all tax preparers to have.
Ask for the professional’s education background. Also ask for the references, use these to make sure whether the individual is reliable or not.
Look for Compatibility
Besides someone being a qualified Kissimmee tax return professional with tons of credentials. One would want to work with someone they are comfortable with. You can ask for references on what it is like working with a particular Kissimmee tax return professional. Another trick is to ask hypothetical questions about your situation, and see how the professional responds.
Other than that, to get an idea of what kind of person would be handling your taxes, you can ask questions like
When and how can the person be reached? How much do they charge, and how exactly do they calculate their fee? What other services they offer? What would happen if your returns are audited? What would they need from you (receipts, records etc)?
Finding someone who would prepare your taxes for you is an important task. When you hire a Kissimmee tax return professional keep in mind that you should not do things like signing a blank tax return slip without discussing the matter with your tax preparer. It does not matter how small a task is, if you do not understand it you should not make a move based solely on intuition.
Do You Have To File Tax Return In Kissimmee if Your Business Did Not Make Any Money?
The internal Revenue Service clearly states that all corporations in the Kissimmee, FL need to file an Kissimmee tax return, regardless of them having or not having taxable income. The exact same rule is meant to be followed by partnerships and LLCs. It is only charities and NGO’s that are exempted, even though they do have to file Kissimmee tax return if they are earning any sort of income through it.
The IRS makes an exception for people who are who are self employed, and making less than $400 annually. Neither do they have to pay the self employment tax.
On the other hand if you are self employed and had any withholding from an employment in the current year then you must file to regain that amount. If you incurred a loss from your business then that would have counterbalanced your employment income and you will have to pay your taxes at a lower rate.
You have to file the Kissimmee tax return if you qualify for the EITC (earned income tax credit). This tax credit is a federal subsidy for workers with low incomes. It favors families because the maximum credit allowed here rises according to the amount of your family members. As your income increases the EITC diminishes. However any excess that goes over your tax liability is given out as refund.
You Don’t Have To File If Your Expenses Cover Your Income
It is important that you show the costs that will offset your income. Otherwise the IRS will assume that you owe taxes on all the money that you earned. To be exempted you need to file a schedule C.
If Your Business Has Workers
If your business has not made any money but has employees then it is legally obligated to pay Social Security Medicare and unemployment taxes. Because federal taxes are all about paying as you go, businesses require that you withhold federal income taxes from each employees check and deposit that sum.
Even if you were exempted by law from filing for Kissimmee tax return when you make no sales, it is still recommended that you do. This is because filing each year leaves a paper trail for the IRS. If you filed Kissimmee tax return which showed revenue each year and then all of a sudden you stopped (even though it is not illegal) you can be subjected to a lot of scrutiny. If you are just starting off your business, filing a Kissimmee tax return can help you establish a paper trail.
Just because your business made no sales it does not mean that it has no financial activity to report for that year. Showing the net loss on your Kissimmee tax return will let you carry these losses forward to the following years, or to the previous years. Therefore counterbalancing your income in all the years and cutting down on the tax that you are entitled to pay.
If you need more information about our Kissimmee, FL accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.