When it comes to finances, it’s important to stay on track, especially with your taxes and more so if you own a business. Since there is a lot to know when it comes to taxes, rules and regulations and maintaining financial records, it can be difficult to remain compliant. This is why it is wise to hire a CPA.
A CPA not only helps you stay organized and up to date with your tax documents, but they also help you set financial goals, maintain compliance with current regulations, cut your costs, reduce your liabilities and so much more.
Everything from budgeting and bookkeeping, to assisting clients in organizing their business are just a few things that will help keep your finances on track.
Another essential task involves keeping clients out of trouble with the IRS, especially if they are facing tax issues such as an audit. Besides helping with tax audits, here are three other things that a CPA may do to help you conduct business and stay in check.
Filing Your Taxes Late
If you have a CPA, failing to file your taxes shouldn’t be an issue. Unfortunately, this does happen. Although CPAs go out of their way to make sure that they request the info they need to process your taxes quickly, mishaps happen. For instance, things they request may not get mailed on time, they can get lost in the transfer process, or customers flat out forget. CPAs can file for an extension on your behalf to get more time for you to file your taxes. However, you have to do your due diligence to help them get your taxes filed in a timely fashion. If you fail to file your taxes on time and you owe the IRS, you could end up paying a tax penalty. This penalty fee can start at five percent and max out at 25 percent.
Failing To File Your Taxes
Another problem that may get you into some trouble is not filing your taxes at all. Refusal to file your taxes within the timeframe allowed by the IRS can make you incur a tax penalty. This penalty can range from 0.05 percent to 25 percent. The interest rate compounds daily, so the excess money that you owe can pile up quickly. If you don’t address this issue right away, a few hundred dollars you may have owed may turn into thousands of dollars due to neglect.
Failing To Pay Your Taxes
If you file your tax returns but fail to pay them in the allotted time, you will start to accumulate penalties on what you owe. However, if you flat out forget to pay or can’t pay because you don’t have the money, the IRS will start to target you with liens on your property. They can even levy your bank account or begin to garnish your wages. If this lack of paying your taxes drags on for a substantial amount of time, you may even face jail time. Tax evasion can get you one to five years in prison.
How A CPA Can Help
If you have massive tax penalties and owe tons of money, you don’t have to lose another night of sleep over them. And, you don’t have to face your troubles alone. Helping you get out of your financial problems with the IRS is one of the other significant tasks that CPAs must deal with when they are not assisting customers in filing taxes. They are experts at the law and know how to keep you from going to jail by formulating a plan to resolve your back taxes. Keep in mind that if you are willing to get on top of the issues, the IRS is willing to work with you.
Not only this, but a CPA can also help you work out arrangements to help you pay and stop the wage garnishments, liens on your home, or levies against your bank account. A CPA can also help you prepare and submit an offer in a compromise application in which you pay the IRS only what you can afford based on your financial situation. They can negotiate with the IRS on your behalf to help you resolve your tax problems so that you can get on the road to a new financial start.
Owing the IRS is scary. If you haven’t been taking care of your financial obligations, the money you owe can increase, causing you to owe even more than you were initially obligated to pay. Hiring a CPA can help you get on top of your financial problems and possibly reduce or eliminate your tax penalties and burdens.
Tax And Accounting Experts in Canton
Don’t let your common mistakes turn into tax liabilities and penalties. Let Tax Avenger in Canton Michigan keep your finances and business on track. We are a full-service tax and accounting firm that specializes in tax problem resolution with more than 20 years of experience. Our expertise ensures competency to resolve your tax issues, as well as clear your name and put together a tax plan so that you don’t have any future tax problems.
We are accounting and tax specialists dedicated and committed to providing exceptional service to our clients. Whether you need tax preparation, business accounting services, bookkeeping services, or help starting your business, we’ve got you covered. Call today and schedule a Free Consultation!