Categories
Tax

13 Tips to Finding the Right Tax Preparer Miami Team

13 Tips to Finding the Right Tax Preparer Miami Team

How do you find an Income Tax Preparer Miami Team that is right for you? First, income Tax Preparer Miami are not all the same.

First, not all Tax Preparer Miami are the same.

I previously wrote an article about this last year titled: “Tax Preparer Miami – Are they really all created equal”, and you may be as surprised as other readers about just how much tax return preparation can vary.
In fact, I calculated the average savings I typically find from annual tax savings, reducing professional fees and audit assessments. In total, the average savings are:
– $23,750 Annual tax savings
– $5,000 Audit defense savings
– $10,000 Reduced audit assessment savings
– $50,000 Reduced legal fees
– $3,000 Reduced tax return preparation Miami (average) fees
This is a total average potential savings of $91,750! Your tax preparer does make a difference! How much more could you do with these savings?
Second, the right tax preparer for you depends on what is important to you. Take a minute to answer this question:

WHAT MAKES YOUR INCOME TAX PREPARER MIAMI SUCCESSFUL?

How you answer this question will impact what type of Tax Preparer Miami team you need. I’ve asked these questions to clients, prospects and colleagues. I have compiled the most popular answers and what it means to you as you find the Income tax preparer Miami for your team.

ANSWER #1: Paying the least amount of tax legally
Your Income Tax Preparer Miami team needs to:
– Know the tax law very well and know how to be creative legally.
– Ask you a lot of questions about your situation in order to understand your situation and goals.
– Have a review process where at least one other person reviews your return solely for the purpose of how to reduce your taxes legally.
HERE ARE SEVEN (7) QUESTIONS YOU SHOULD ASK YOUR INCOME TAX PREPARER MIAMI TEAM TO DETERMINE IF IT’S A GOOD FIT:
Q1: Can you tell me about the other (your industry) you service?
A: Your Tax Preparer Miami needs to know how the tax law applies to your situation. Having other clients in your industry or with similar investments indicates that the tax preparer is likely to be familiar with the tax laws that impact you.
Q2: Who will be working on my income tax return?
A: It’s very common (and a good business practice) for income tax preparers in Miami to have staff prepare your tax return. You want to make sure the other people working on your return have the same level of expertise.
Q3: What is your tax return review process?
A: Tax Preparer Miami who are focused on reducing your taxes will have this built into their review process. Usually it involves having another experienced tax preparer review the return solely for the purpose of finding ways to reduce your taxes.
Q4: What would you have done differently on my past tax return?

A: Show the income tax preparer Miami you are interviewing your prior year tax return. Creative income Tax Preparer Miami will be able to give you at least one idea of what you can do to reduce your taxes by looking at your tax return for just a few minutes. If it’s creativity you are after, this is a great question to ask! But don’t expect the income tax preparer Miami to give you all the details right then and there – that’s why you pay them!
Q5: How much can you save me in taxes?
A: While it’s difficult for any income Tax Preparer Miami to answer this in just a few minutes of looking at your past tax return, it is possible for them to know if they can save you taxes after spending 30 minutes with you.

Q6: What deadlines do you impose on clients?
A: This may seem like an odd question for minimizing your taxes but it has a direct impact. If your income tax preparer in Miami allows you to provide your information a week before the tax return is due, it’s very unlikely that the income tax preparer Miami will have the time to focus on your return to truly minimize your taxes. Income Tax preparers in Miami that want to reduce your taxes want your tax return information early and will communicate that to you.
Q7: What recent tax law changes should I be aware of?  A: To minimize your taxes, your tax preparer needs to know the tax law inside and out, which includes the latest changes? Your tax preparer needs to be able to answer this question without hesitation.
ANSWER #2: Minimizing tax return preparation fees your tax preparer needs to:
– Focus on the tax work and recommend someone else for the non-tax work (such as bookkeeping).
– Request tax information in a certain format.
– Require you to input your information online.

HERE ARE TWO (2) QUESTIONS YOU SHOULD ASK YOUR TAX PREPARER MIAMI REGARDING MINIMIZING RETURN PREPARATION FEES TO DETERMINE IF IT’S A GOOD FIT:

Q1: What can I do to reduce my tax return preparation fees?
A: To minimize your tax return preparation fees, your tax preparer always needs to have your fees in mind. Ask your tax preparer what you can do to reduce your fees. If you don’t get at least 2 suggestions, your tax preparer probably isn’t thinking about how to keep your fees low.
Common suggestions include:
– Have someone other than the tax preparer do your bookkeeping. I am always skeptical when a tax preparer does the bookkeeping. First, they either charge an arm and leg or if they reduce their rates to accommodate you, it means they don’t spend their time entirely on tax issues, which could indicate their tax skills aren’t up to par.
– Organize your information. Don’t bring your tax preparer a shoebox! A tax preparer that is really focused on keeping your fees down will have forms, spreadsheets and other tools available for you to use to organize your tax return information.
– Enter your information online. Many tax preparers now require clients to input their information online. Accurately entered information can help reduce fees. Caution: Information that is entered inaccurately can increase your fees!
Q2: What is your fee structure?
A: Your tax preparer needs to be able to answer this question with confidence. Any wavering could indicate that the tax preparer knows the fees are too high for you but just doesn’t want to tell you. Unfortunately in these situations, you find out too late!
ANSWER #3: Reducing audit risk your tax preparer needs to:
– Know the tax law very well and how to properly report your activity.
– Understand the IRS’s current “hot buttons” or “red flags.”
– Offer an audit defense plan.

HERE ARE FOUR (4) QUESTIONS YOU SHOULD ASK YOUR TAX PREPARER MIAMI IN REGARDS TO REDUCING AUDIT RISK TO DETERMINE IF IT’S A GOOD FIT:

Q1: How many audits have you been through and what triggered the audit?
A: The most important part of this question is what triggered the audit. If it was triggered by how something was reported, then that may be something the tax preparer had control over (and may be a bad sign for you).
Q2: What was the outcome of the audits you have been through?
A: A return can be randomly selected for audit or selected because of a certain activity (even though it was reported correctly). So it’s important to understand the outcome of the audits. Was additional tax assessed or were there no changes? Additional tax may indicate that something was not reported properly.
Q3: Do you offer an audit defense plan?
A: Tax preparers that are confident in their work will offer an “insurance” program that covers their professional fees to handle your audit if your return is selected for audit.
Q4: What is your tax return review process?
A: Although tax returns can be selected randomly for audit, many are selected due to how items are reported on the tax return. Tax preparers who are focused on reducing audit risk will have a review process that includes another tax preparer reviewing your return solely for accuracy of reporting.
Be selective with the tax preparer you put on your team. The average savings I find for my clients is over $90,000! Your tax preparer makes a difference!

 

Categories
Tax

What Can I Deduct

What can I deduct?

As I Tax Accountant in Miami I often asked, “What can I deduct? To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary. Tax Return Preparation Miami can help with your questions.

What Can I Deduct as a business expenses from the following expenses:

The expenses used to figure the cost of goods sold,

  • Capital Expenses, and
  • Personal Expenses.
  • Cost of Goods Sold

During your Tax Preparation, if your business manufactures products or purchases them for resale, you generally must value inventory at the beginning and end of each tax year to determine your cost of goods sold. Some of your expenses may be included in figuring the cost of goods sold. Cost of goods sold is deducted from your gross receipts to figure your gross profit for the year. If you include an expense in the cost of goods sold, you cannot deduct it again as a business expense.

What Can I Deduct as cost of goods sold.

  • The cost of products or raw materials, including freight
  • Storage
  • Direct labor costs (including contributions to pensions or annuity plans) for workers who produce the products
  • Factory overhead

Capital Expenses

You must capitalize, rather than deduct, some costs. These costs are a part of your investment in your business and are called capital expenses. Capital expenses are considered assets in your business. There are, in general, three types of costs you capitalize.

  • Business start-up cost (See the note below)
  • Business assets
  • Improvements

Personal versus Business Expenses

Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part.

For example, if you borrow money and use 70% of it for business and the other 30% for a family vacation, you can deduct 70% of the interest as a business expense. The remaining 30% is personal interest and is not deductible. Refer to chapter 4 of Publication 535, Business Expenses, for information on deducting interest and the allocation rules.

Business Use of Your Home

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. Refer to Home Office Deduction and Publication 587, Business Use of Your Home, for more information.

Business Use of Your Car

If you use your car in your business, you can deduct car expenses. If you use your car for both business and personal purposes, you must divide your expenses based on actual mileage. Refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses.

Other Types of Business Expenses

  • Employees’ Pay – You can generally deduct the pay you give your employees for the services they perform for your business.
  • Retirement Plans – Retirement plans are savings plans that offer you tax advantages to set aside money for your own, and your employees’ retirement.
  • Rent Expense – Rent is any amount you pay for the use of property you do not own. In general, you can deduct rent as an expense only if the rent is for property you use in your trade or business. If you have or will receive equity in or title to the property, the rent is not deductible.
  • Interest – Business interest expense is an amount charged for the use of money you borrowed for business activities.
  • Taxes – You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses.
  • Insurance – Generally, you can deduct the ordinary and necessary cost of insurance as a business expense, if it is for your trade, business, or profession.

This list is not all inclusive of What Can I Deduct. For additional information, contact a Tax Accountant in Miami.

 

Categories
Tax

Corporate Tax Audits on the Rise

Corporate Tax Audits on the Rise

Corporate Tax Audits of are increasing across the country at both the federal and state levels, according to a new survey by Tax Preparation Miami. With all the recent publicity about major corporations that have managed to avoid paying federal income taxes, that’s probably no surprise says Tax preparer Miami CPA Gustavo Viera.

Tax Preparation Miami states that the majority of the 890 corporate tax preparer Miami surveyed said federal and state Corporate Tax Audits increased in the past 12 months, and the majority of them also believe audit activity will increase over the next year too.

Nearly two-thirds of those tax preparer Miami polled said federal tax dispute activity had increased in the past 12 months, while more than one-third said the total number of state Corporate Tax Audits in jurisdictions in which they do business has also increased according to Tax Preparation Miami.

Tax Preparation Miami is warning companies of all sizes to be prepared for a potential Corporate Tax Audits in advance of receiving an audit notification. As a tax preparer Miami that’s probably good advice, especially as the IRS has been looking to tools like its expanded CAP program to encourage greater corporate tax compliance.

 

Categories
Tax

IRS Cracks Down on Tax Preparer Miami

IRS Cracks Down on Tax Preparer Miami

The IRS is sending letters to 21,000 members of the Tax Preparer Miami community to make them aware of their preparer responsibilities and to provide them with information to ensure the accuracy and quality of their clients’ returns in the 2012 filing season. The IRS plans to visit at least 2,100 of the income Tax Preparer Miami during the filing season at their business locations.

Tax Preparer Miami and IRS has provided information regarding the letters to and visits with income tax preparer Miami in a question-and-answer format. The purpose of the letters and visits is to heighten awareness of preparer responsibility, with a focus on income tax preparer Miami who prepare a large number of returns with Schedules A, C and E.

Certain Income Tax Preparer Miami firms have been selected due to the high percentage of attributes that indicate errors in filing Schedules A, C or E during the 2011 filing season. Included with the letters are enclosures addressing areas of concern regarding those schedules. The letters and visits are an integral part of the effort by the IRS to provide oversight of income tax preparer Miami firms, as well as to inform practitioners of their responsibilities.

The Schedule A enclosure is being sent to income tax preparer Miami who have prepared returns that have a high number of attributes typically found to have significant errors on Schedule A, Itemized Deductions. The notice lists the most common issues as unreimbursed employee business expenses and business mileage claimed on Form 2106, travel, meals and entertainment expenses, and charitable contributions. Tax Preparer Miami CPA Viera advises staff to make reasonable inquiries if the information furnished by a taxpayer appears to be incorrect, inconsistent with an important fact, or incomplete.

The Schedule C, Profit or Loss from Business (Sole Proprietorship), enclosure is used to inform income tax preparer Miami who have prepared returns with attributes that indicate a high number of errors on Schedule C. The most common Schedule C issues are: reporting less than all the gross receipts, reporting expenses that are not ordinary and necessary for the business, and reporting the allowable amount of the expenses paid or incurred during the tax year. Income Tax Preparation Miami CPA Viera advises staff to ask clients sufficient questions to ensure that the expenses being claimed are correct. Taxpayers may not fully understand the law and they may believe they are entitled to claim Schedule C deductions for nonqualifying expenses.

The Schedule E, Supplemental Income and Loss, is the third enclosure used by the IRS to indicate that a income tax preparer in Miami has prepared returns that have a high incidence of attributes found to result in error on Schedule E. The most common issues are that rental income and expenses have not been correctly reported, rental depreciation has not been correctly calculated and passive activities, basis and at-risk rules have not been properly considered or calculated. Income Tax Preparation Miami CPA Viera makes the appropriate inquiries to determine the existence of facts and circumstances required as a condition for claiming a deduction or credit.

When it comes to income tax preparation in Miami residents often feel a lot of anxiety. This is for good reason as you need to carefully go line by line and make sure that you are executing your tax preparation the right way. Why not hire a pro?

Tax Preparer Miami Finding a Pro

Really, there is no reason to stress out when tax time rolls around. All you need to do is find a professional Tax Preparer Miami. You can start your search online by typing income tax preparer in Miami into the search engine of your choice and seeing what comes up. Likewise, you can look in the phone book under income tax preparation Miami and see what is available.

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Business Trends

Accountant Miami

An Accountant Miami is a practitioner of accountancy or accounting, which is the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and others make decisions about allocating resources.

The Big Four auditors are the largest employers of Accountant Miami. However, most Accountant Miami are employed in commerce, industry and the public sector.

In the United States, licensed accountants are Certified Public Accountants (CPAs) and in certain states, Public Accountants (PAs). Unlicensed Accountant Miami may be Certified Internal Auditors (CIAs), Certified Management Accountants (CMAs) and Accredited Business Accountants (ABAs). The difference between these certifications is primarily the legal status and the types of services provided, although individuals may earn more than one certification.

Additionally, much accounting work is performed by uncertified Accountant Miami, who may be working under the supervision of a certified accountant. As noted above the majority of accountants work in the private sector or may offer their services without the need for certification.

A CPA is licensed by a state to provide auditing services to the public. Many CPA firms also offer accounting, tax, litigation support, and other financial advisory services. The requirements for receiving the CPA license vary from state to state, although the passage of the Uniform Certified Public Accountant Examination is required by all states. This examination is designed and graded by the American Institute of Certified Public Accountants.

A PA (sometimes referred to as LPA—Licensed Public Accountant) is licensed by the state to practice accountancy to a similar extent as are CPAs, except that PAs are generally not permitted to perform audits or reviews (Delaware is an exception, in that PAs are permitted to perform audits and reviews). A PA’s ability to practice out of state is very limited due to most states having phased out the PA designation. While most states no longer accept new PA license applicants, six states still accept PA applicants for limited practice privileges within the state. As with the CPA, the requirements for receiving the PA license vary from state to state. Most states require a passage of either 2 or 3 (out of 4) sections of the CPA exam or passage of the Comprehensive Examination for Accreditation in Accounting which is administered and graded by the Accreditation Council for Accountancy and Taxation (ACAT).

A certified internal auditor (CIA) is granted a certificate from the Institute of Internal Auditors (IIA), provided that the candidate has passed a four part examination. One of the four parts is waived if the candidate has already passed the CPA Exam. A CIA typically provides services directly to an employer rather than to the public.

A person holding the Certificate in Management Accounting (CMA) is granted the certificate by the Institute of Management Accountants (IMA), provided that the candidate has passed an examination of two parts and has met the practical experience requirement of the IMA. A CMA provides services directly to employers rather than to the public. A CMA can also provide services to the public, but to an extent much lesser than that of a CPA.

A person holding the ABA credential is granted accreditation from the Accreditation Council for Accountancy and Taxation (ACAT), provided that the candidate has passed the eight-hour Comprehensive Examination for Accreditation in Accounting which tests proficiency in financial accounting, reporting, statement preparation, taxation, business consulting services, business law, and ethics. An ABA specializes in the needs of small-to-mid-size businesses and in financial services to individuals and families. In states where use of the word “accountant” is not permitted by non-licensed individuals, the practitioner may use the designation Accredited Business Adviser.

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Business Trends

Tax Accountant Miami

Taxpayers of all types can benefit from hiring a Tax Accountant Miami. But before you spend your hard-earned cash, here’s some simple steps you can take to protect yourself, to find the right professional for your situation, and some questions to ask.

Understand Why You Need a Tax Accountant

You should take some time to focus on exactly what you need your Tax Accountant Miami to do. Here are some common situations:

  • Preparing your own taxes is time-consuming, stressful, or confusing.
  • You want to make sure your tax returns are accurate.
  • Your tax situation is pretty complex, and you need specialized advice and tips.
  • You would like to pay as little taxes as possible, and need detailed planning and advice.
  • You are facing a tax problem, such as filing back taxes, paying off a tax debt, or fighting an IRS audit.
  • You run a business, invest in the stock market, own rental property, or live outside the United States.
  • Finding Tax Accountant Miami
  • You should find an experienced tax accountant who specializes in the areas you need help with. Here are my tips for finding the right professional who has the specialized tax expertise you need:
  • Referrals are your best bet. Ask everyone you can think of: family, friends, business owners, financial advisors and attorneys. It will help to ask someone who has a similar tax situation to yours.
  • Be wary of an Tax Accountant Miami who promises you big refunds or that says you can deduct everything. You, not the accountant, are ultimately responsible for the information on your tax return.
  • Do not be afraid to shop around or to change Tax Accountant Miami if you are not comfortable.
  • Retail tax franchises such as H&R Block, Jackson Hewitt, and Liberty Tax Service offer competent tax service for individuals who need to file relatively straight-forward tax returns. Some tax preparers will be more experienced than others, and you can sometimes find CPAs and Enrolled Agents working in these offices. Prices are often determined by how many tax forms need to be filled out. Here’s a tip: ask if you can meet with a CPA, enrolled agent, or senior tax preparer. You’ll pay the same, but you’ll get to speak with a seasoned professional.
  • Local, independent Tax Accountant Miami often specialize in the tax needs of individuals and small businesses in their neighborhood. Again, some independent tax accountants will be more experienced than others. Ask if the firm has the expertise to handle your taxes.
  • Enrolled Agents (EAs) are tax professionals who have passed a rigorous test and background check administered by the IRS. Enrolled agents often specialize and are best for complex tax situations.
  • Certified Public Accountants (CPAs) are accountants who have passed the rigorous CPA Exam and are licensed by the state they work in. CPAs will specialize in a specific area, such as audits, tax, or business consulting. CPAs are best at complex accounting work, and not all CPAs handle tax issues.

The tax industry is constantly changing and tax professionals are subject to various federal and state regulations. Here are some questions you can ask to help ensure you find an experienced, trustworthy Tax Accountant Miami:

  • What licenses or designations do you have?
  • How long have you been in the tax business?
  • What tax issues do you specialize in?
  • Do you have the knowledge and experience to handle my tax situation?
  • What are your fees?
  • Do you outsource any of your work? Do you perform the work personally? If not, what is the review process? Who signs the returns?
  • How long, approximately, will it take to finish my taxes?
  • What’s your privacy policy? Will you share my tax information with any third-parties?
  • Do you believe I’m paying too much, too little, or just the right amount of tax?

 

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Business Trends

CPA in Miami

CPA in Miami is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA.

Individuals who have passed the Exam and become CPA in Miami but have not either accomplished the required on-the-job experience or have previously met it but in the meantime have lapsed their continuing professional education are, in many states, permitted the designation “CPA Inactive” or an equivalent phrase. In most Florida, only CPA in Miami who are licensed are able to provide to the public attestation (including auditing) opinions on financial statements. The exceptions to this rule are Arizona, Kansas, North Carolina and Ohio where, although the “CPA” designation is restricted, the practice of auditing is not.

Many states have (or have had) a lower tier of accountant qualification below that of CPA in Miami, usually entitled “Public Accountant” or “Licensed Public Accountant” (with designatory letters “PA” or “LPA”), although other titles have included “Registered Public Accountant” (RPA), “Accounting Practitioner” (AP), and “Registered Accounting Practitioner” (RAP). This designation was intended as a designation for non-certified accountants who were practicing public accounting before a state accountancy law was enacted to regulate the accounting profession. The majority of states have closed the designation “Public Accountant” (PA) to new entrants, with only about six states continuing to offer the designation. Many PAs belong to the National Society of Accountants.

Many states prohibit the use of the designations “Certified Public Accountant” or “Public Accountant”/”Licensed Public Accountant” (or the abbreviations “CPA” or “PA”/”LPA”) by a person who is not certified as a CPA or PA in that state. As a result, in many circumstances, an out-of-state CPA in Miami is restricted from using the CPA designation or designators letters until a license or certificate from that state is obtained.

Florida additionally prohibits the use of the designations “accountant” and “auditor” by a person not certified as a CPA in Miami, unless that person is a CPA in another state, a non-resident of Florida, and otherwise meets the requirements for practice in Florida by out-of-state CPA firms and practitioners.

Categories
Tax

Tax Preparer Miami – Ten Tips To Choose Right One

Tax Preparer Miami – Ten Tips To Choose Right One

Many people look for help from professional Tax Preparer Miami when it’s time to do their Tax Preparation. If you use a paid Tax Preparer Miami to do your Tax Preparation this year, the IRS urges you to choose that Tax Preparer Miami wisely. Even if the Tax Preparer Miami is prepared by someone else, the taxpayer is legally responsible for what’s on it. So, it’s very important to choose your Tax Preparer in Miami carefully.

This year, the IRS wants to remind taxpayers to use a Tax Preparer Miami who will sign the returns they prepare and enter their required Tax Preparer Miami Tax Identification Number (PTIN).

Here are ten tips to keep in mind when choosing a Tax Preparer Miami firm:

1. Check the preparer’s qualifications. New regulations require all paid Tax Preparer Miami to have a tax preparer Tax Identification Number. In addition to making sure they have a PTIN, ask if the Tax Preparer Miami is affiliated with a professional organization and attends continuing education classes. The IRS is also phasing in a new test requirement to make sure those who are not an enrolled agent, CPA, or Tax Preparer Miami firm have met minimal competency requirements. Those subject to the test will become a Registered Tax Preparer Miami once they pass it.

2. Check on the Tax Preparer Miami history. Check to see if the Tax Preparation Miami firm has a questionable history with the Better Business Bureau and check for any disciplinary actions and licensure status through the state boards of accountancy for certified public accountants; the state bar associations for attorneys; and the IRS Office of Enrollment for enrolled agents.

3. Ask about their service fees. Avoid Tax Preparer Miami who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers.  Also, always make sure any refund due is sent to you or deposited into an account in your name.  Under no circumstances should all or part of your refund be directly deposited into a preparer’s bank account.

4. Ask if they offer electronic filing.  Any paid Tax Preparation Miami firm who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return.  More than 1 billion individual tax returns have been safely and securely processed since the debut of electronic filing in 1990.  Make sure your preparer offers IRS e-file.

5. Make sure the Tax Preparer in Miami is accessible.  Make sure you will be able to contact the Tax Preparation Miami firm after the return has been filed, even after the April due date, in case questions arise.

6. Provide all records and receipts needed to prepare your return. Reputable Tax Preparer Miami will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items. Do not use a Tax Preparation Miami firm who is willing to electronically file your return before you receive your Form W-2 using your last pay stub. This is against IRS e-file rules.

7. Never sign a blank return. Avoid Tax Preparer in Miami that ask you to sign a blank tax form.

8. Review the entire return before signing it.  Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.

9. Make sure the Tax Preparation Miami firm signs the form and includes their PTIN.  A paid Tax Preparer Miami must sign the return and include their PTIN as required by law. Although the Tax Preparer Miami signs the return, you are responsible for the accuracy of every item on your return.  The preparer must also give you a copy of the return.

10. Report abusive tax preparers to the IRS. You can report abusive tax preparers and suspected tax fraud to the IRS on Form 14157, Complaint: Tax Return Preparer. Download Form 14157 from www.irs.gov or order by mail at 800-TAX-FORM (800-829-3676).

Categories
Tax

Virtual Tax Audits via Your PC Coming Soon

The only thing worse than tax preparation is the dreaded process of getting a Tax Audits and it could soon take place over a computer screen

The only thing worse than tax preparation in Miami is the dreaded process of getting a Tax Audits and it could soon take place over a computer screen in the comfort of your living room. Better hire a CPA to sit on the couch next to you.

Virtual Tax Audits

CPA’s advises clients in what could be an indication of things to come. Income tax preparation VieraCPA states the IRS launched a pilot program at the end of last year that allows taxpayers to use two-way video conferencing for assistance with tax questions and problems. Tax preparation business having been using this for consultation purposes for year, the IRS has caught on.

The Taxpayer Advocate Service, an independent watchdog arm of the IRS, is already calling for the agency to expand to virtual audits notes VieraCPA a Income tax preparation. The IRS says it needs to evaluate the success of the pilot program before making a decision.

Income tax preparation CPA’s notes theVirtual Tax Audits pilot program is currently being tested in 12 locations, where taxpayers needing assistance can log into a computer enabled with video-conferencing. They can then talk to an IRS agent who pops up on the screen to discuss whatever issues they’re having — whether it’s tax preparation or help with a tax form or a question about a refund.

TAS is also piloting a virtual assistance program. And VieraCPA stated that the tax preparation business and Certified Tax Preparer that this technology has the potential to “radically transform” the current audit process — eventually allowing taxpayers and tax preparers to use their personal computers to video conference with an IRS examiner.

To schedule an Virtual Tax Audits with an Income tax preparation or its client, the IRS would send a taxpayer a sign-in code so they could then log in to the meeting from a home or office computer. Documents could be transmitted by simply scanning them with a computer’s built-in camera notes Tax preparation business or a Certified Tax Preparer.

This could one day replace the need for correspondence audits, which are the letters the IRS currently sends taxpayers in the mail asking questions or requesting more information and their Income tax preparation Miami responding.

To save costs, the IRS has become increasingly reliant on correspondence audits instead of summoning taxpayers for in-person meetings says VieraCPA an Income tax preparation. But TAS says that these Virtual Tax Audits receive fewer responses and that many of the taxpayers dealt with these audits don’t understand how they work, default on payments and get hit with penalties.

Plus, with correspondence audits a specific representative typically isn’t assigned to a case, leaving many taxpayers without a point person to ask questions or to contact with concerns.

Virtual audits could eliminate the confusing paperwork and recreate a face-to-face meeting via computer. Tax preparation business or a Certified Tax Preparer Miami agree it would be easier to explain complex situations.

Doing this would also help taxpayers better understand why they are being audited and what additional information is needed, said Viera. It would also help the IRS obtain the accurate information it needs and help the agency view taxpayers as more than just tax returns.

The IRS’s virtual assistance pilot program is scheduled to continue through the 2012 filing season and end in May. Office locations include Colorado Springs, Colo., Fresno, Calif. and Utica, N.Y.

Once the program is completed, the IRS will evaluate its performance. So far, it said the pilot has allowed it “to maximize our current resources, by expanding hours of service in remote locations and balancing the workload in high-traffic areas.” But it wouldn’t say whether it is considering using this same technology for audits.

“The initial focus of Virtual Tax Audits delivery is on taxpayer service. We’re still in the middle of the pilot and still assessing the results,” the IRS said in a statement. “It’s premature to speculate about future steps.”

Categories
Tax

Tax Preparers Miami Must Adapt to Change

Tax Preparers Miami Must Adapt to Change

Tax Preparers Miami Must Adapt to Change and are working harder nowadays to keep up with a changing profession, an official with the American Institute of CPAs told Miami CPA Firms attendees at Accounting Today’s Growth & Profitability Summit.

AICPA director of taxation Jina Etienne said in a keynote speech on Monday that many Tax Preparers Miami Must Adapt to Change are now using social media such as Twitter, Facebook, LinkedIn and blogs. But while Tax Preparers Miami Must Adapt to Change are using technology, they’re not always adopting technology in the most effective way. “It’s having an impact on our tax services,” said Etienne. “Revenues are staying consistent, but we’re working harder to keep those revenues.”

She noted that accounting is becoming more international. At the AICPA’s Fall Meeting of Council last week, AICPA president and CEO Barry Melancon talked about International Financial Reporting Standards and the new Chartered Global Management Accountant credential that the AICPA and the Chartered Institute of Management Accountants are jointly offering. This is now the first year of renewals for the CGMA credential, and the AICPA has already hit its target for renewals.

Meanwhile, the Internal Revenue Service announced a delay in reporting for the Foreign Account Tax Compliance Act last week, Etienne noted, because it takes time for taxpayers and CPAs to get their arms around the new requirements. There has been a blowback in IRS enforcement, with some families finding out for the first time that they have a foreign bank account after Swiss banks like UBS are forced to disclose the accounts to the IRS.

CPAs also need to protect clients from the increase in phishing attacks and tax-related identity theft. The IRS reported more than 641,000 taxpayers were affected by tax-related identity theft in 2011, Etienne noted.

The fiscal cliff is also looming large, with a host of tax provisions expected to expire at the end of the year, along with steep spending cuts in Washington due to the “sequestration” that was part of the debt ceiling deal. “How do we do year-end tax planning when we don’t know what the tax law will be?” Etienne asked.

She noted that tax preparers  are calling the AICPA every day asking about what they should do, while insisting that the Institute should have told the IRS to do something about various issues, as if it were up to the AICPA to determine tax policy. “We are in a tremendous period of uncertainty,” she said.

Health care reform is also adding to the uncertainty and placing new burdens on the IRS to help manage the program. “Tax compliance isn’t just about income taxes anymore,” she said.

Meanwhile, the IRS has been heightening the new requirements for tax preparers. “Under Circular 230, you are now required to have quality control procedures in place to ensure compliance with Circular 230 provisions,” said Etienne.

The IRS is also visiting Miami CPA firms to see how they’re doing at tax preparation and making sure their clients fully comply with the tax laws. “The IRS is putting more pressure on you asTax Preparers Miami Must Adapt to Change, pulling you over to their side to make sure you’re doing tax compliance,” she noted.

The AICPA is trying to respond to the changing demands for tax preparers . The CPA Horizons 2025 project came up with a list of key insights for how the CPA profession needs to adapt over the next dozen or so years. The AICPA is also offering a Tax Preparer Toolkit with preformatted messages and even tweets that CPAs can send out on a seasonal basis to stay engaged with clients. In addition, the AICPA is providing customizable marketing tools that CPAs can use to advertise themselves as tax Preparers with years of experience and distinguish themselves from the IRS’s new Registered Tax Return Preparer designation.

“The CPA credential is the most valued,” said Etienne. “The public trusts us. They want to trust us.”

In addition, the AICPA recently introduced an online Total Tax Insights Calculator to enable taxpayers to estimate the amount they pay each year for the most common federal, state and local taxes.

“Familiarity with technology is baked into the CPA profession now,” said Etienne.