22 May How to Find a Personal Tax Service for Entrepreneurs
At a 35% federal annual tax rate, American companies currently bear the most significant burden of taxation globally. This remains the primary reason most American entities opt to move their profitable ventures to countries with lower tax caps. However, for small and medium-sized businesses, their problems with taxation are not only about the total tax obligation but also on how to prepare to file returns.
Finding a reliable personal tax service near you isn’t always easy. You need to find a service provider who can go beyond the role of advisor and help you navigate the complex terrain of filing taxes. Are you looking for personal tax services near you?
Read on to learn how you can find a personal tax service near you.
Why Is Preparation at the Core of Filing Taxes?
You’re responsible for what you submit on your tax returns. If you are liable for falsifying tax information or for misrepresentation of facts, you may end up facing legal consequences. For this reason, the process of filing taxes begins and ends with the preparation stage. About 56% of American taxpayers rely on tax preparers when filing taxes.
Most times, your dentistry practice or construction company is preoccupied with the core of the business. Adding another burden of calculating, signing, and filing taxes may be derailing your focus on the core business. This situation necessitates the need to source for professional tax preparers to handle your personal tax needs.
But how can you ensure you only work with the best when sourcing for personal tax service?
1. Prioritize Licensing
Tax preparation and filing is a delicate process that can land you and your business in the soup if not careful. You need to ensure that you only consult with firms or individuals that are licensed and accredited to perform such a critical role. All Certified Public Accountants who purport to file taxes on behalf of companies must also complete the IRS’ Annual Filing Season program.
On top of being a certified CPA, you must also go for individuals with Accreditation as Business Accountants. Your potential tax preparer should also be an Accredited Tax Preparer. Each of these accreditation and licensing requirements provide unique exposures to tax preparers as they begin the process of managing tax returns.
At, On Target CPA, our professionals are licensed, accredited, and experienced enough to handle all your tax preparation and filing needs.
2. Request for Preparer Tax Identification Number
Your potential personal tax service provider will not be able to guarantee tax refunds for your dentistry or construction business without a Preparer Tax Identification Number. This number must always be used when accessing the federal tax returns system. As such, even if your tax service provider has the requisite licenses and certification, they must still have the PTIN.
Each tax return preparer only has one PTIN. Further, such filing must only be for compensation purposes. Primarily, the PTIN is essential for protecting the privacy of professionals who have the task of preparing tax returns.
3. Compare the Value for Each Tax Service Provider
Tax preparers provide varying degrees of value for their services. Some providers are great at strategy while others are merely transactional. But it would help if you asked such questions beforehand to make a comparison between the various personal tax service providers.
You must also inquire whether such tax services include items such as Form 1040. Your tax provider should also include schedule A and state tax return forms in the final charge. If you work with a quality tax preparer, they should be transparent with what they will pro-actively provide.
A critical red flag you must be keen on relates to tax preparers who want to charge their fees based on the size of your refund. If such individuals or firms promise to get you a higher return, you may be dealing with fraudsters. Once you are aware of the related charge, always endeavor to compare such costs with other providers before making a decision.
4. That Your Tax Service Provider Offers E-Filing
Before engaging a tax preparer, you must understand the requirements set out by the IRS. Under section 6011 (e) (3), the IRS requires that tax preparers must be able to file specific federal income taxes for individuals and trusts electronically. This stipulation is the reason every personal tax service provider must have an EFIN.
While it does not make a tax preparer a fraud if they don’t file electronically, it should, however, be a matter of credibility if they don’t make e-files. Such a status means that the individual or business may have specific steps remaining before completing the registration for their tax preparation venture. Working with On Target CPA guarantees that you associate with representatives who are abreast of the emerging trends in e-filing and the use of tech in accounting.
5. Learn the Lingo
As an entrepreneur, you may end up cheating yourself more than you cheat the government when it comes to filing tax returns. Such vulnerabilities occur because you want to entrust an individual or a firm with all your taxation processes as you focus on other things. While this allows you more time to concentrate on the core business, it would help to have a basic understanding of how taxation works.
For you to get the best personal tax service provider, you need to have a sit down with them. During such a sitting, your mastery of the taxation process and the lingo used by tax preparers is imperative. You not only come out as a well-informed individual but are also able to challenge the tax preparer on their capabilities.
Before hiring a tax preparer for your business, try and learn your way around the process. With such knowledge, it’s highly unlikely that you’ll ever go wrong with the tax returns process.
6. Confirm That They Would Be Willing to Represent You
Sometimes, issues do emerge. If, after filing your tax return through a preparer, you end up in trouble with the IRS, it may be impossible to represent yourself during an appeal. You should confirm that your tax preparer would have your back during such instances and be willing to represent you.
Such matters require availability and commitment from the tax preparer.
With Professionals Who Have Got Your Back, Filing Returns Is Easy
You don’t want to waste a lot of time working around the preparation of taxes. You’ve got patients to attend to or properties to develop. As such, you need trusted personal tax service providers to help you throughout the process.
With these tips on how to get a reliable personal tax service provider, you can never go wrong. Conduct due diligence and the rest shall fall into place.
Are you looking for an accounting firm that surpasses your expectations? Contact us for your tax and other accounting needs.