Taxation is an exceptional area in a business or organization where there should be no room for errors. Taxation errors can be very costly because they attract penalties, interests, or even extra tax. Lack of proper record-keeping practices can result in an audit, which is a more expensive and tedious exercise as it involves gathering records and preparations.

Finding a tax attorney is necessary if you are to understand what the Internal Revenue Service involves and state tax obligations. Let’s look at some of the reasons why a business should hire a tax attorney.

Business income

Businesses can generate income in several ways. The IRS is all about gross income, which may be derived from goods, property, sales, services, and bartering. You have to be well-informed about what is considered as gross income by IRS because omission of something which falls under the category will attract penalties, additional taxes as well as interest. By hiring a tax attorney, you will get to learn what falls under the gross income, and he/she can further explain to you the roles you need to play when it comes to income reporting.

Employee taxes

It’s a responsibility for every business to meet the tax obligations, whether it has employees or not. For instance, a business with no employees is required to file tax returns for a self-employed individual, which may comprise of quarterly approximated tax payments. As per the law, sole proprietors are not expected to pay business taxes, but they are considered as both employers and employees, and the tax implications can be very tricky for this dual role.

Business deductions

One of the motivations behind starting a business is the availability of business deductions to balance out the income. On the other hand, you have to know what they are and what are the requirements to use them, if you are to take advantage of such deductions. You can approach a tax attorney at dallolawgroup.com for advice if you intend to optimize your deductions.

Tax Year

In the field of business, there is something called tax years. A business can set its tax year at times, but there are times when the government sets the tax years for businesses. Approaching an attorney in such a scenario is very crucial since he or she can guide you to choose the most appropriate tax year. He/she can help you to abide by government requirements … Read the rest

Financial planning can be a confusing topic for many. Faced with a multitude of different options to select from, most simply do not know what to do when it comes to their finances. The vast majority of us do not have years of economic training and it shows. Luckily, there is a solution to this problem in the form of a public accountant. Public accountants possess the knowledge needed to tackle confusing financial situations and explain them in an easy format in which the average person can understand.

When should I visit a financial planner?

As noted above, financial planners and public accountants have undergone the education necessary to understand pretty much all there is to know about finances. There isn’t any particular time period in which you should pay one a visit, but rather at any time that you would like. It isn’t necessary that you are currently undergoing financial issues at the time of the appointment. After all, even people that are considered to be healthy have an annual physical with their physician on a regular basis. You may think that your financial health is sound, but the truth is that it may not be as great as you think it is. Luckily, a financial planner can take a look and point out any potential causes for concern and implement a plan of action as needed.

When it comes to a regular appointment with the accountant you will be asked a variety of different questions. The questions will have to deal with you finances, gross income, expenses, assets, and any debt incurred. the answers given to the question will allow the accountant to get a pretty accurate idea as to what assements and test will need to be ran in order to offer you the best recommendations for your needs. This is great as it ensures that you aren’t getting the same vague advice as everyone else, but rather information that directly applies to your situation. If you are for some reason convinced that the financial planner does not have your best interest in mind you can seek out a second opinion with one of the many cpa firms in Los Angeles.

There is so much more that goes into a financial screening than many seem to realize. There are many different details involved with each case and it is important that those details are not haphazardly … Read the rest