Small Business Accountants Miami Corporate Tax Preparation

Small Business Accountants Miami Corporate Tax Preparation

The Internal Revenue Service has been doing a better job of financial audit of Corporate Tax Preparation in recent years, according to Small Business Accountants Miami CPA Gustavo A. Viera, but potential quality concerns remain. A government report, from the Treasury Inspector General for Tax Administration, reviewed whether IRS examiners followed the appropriate procedures and guidelines when they audited the corporate tax preparation of small companies with assets of less than $10 million.

Many Small Business Accountants providing Corporate Tax Preparation considered closely held because they are owned by one shareholder or a closely knit group of shareholders, TIGTA noted. These shareholders typically exercise significant control over accounting and managing and directing the day-to-day operations of the corporation, providing them with opportunities to improperly structure transactions that reduce the amount of income taxes owed when the corporate tax preparation is performed by Miami Accounting Firms and the small corporation or its shareholders.

TIGTA found that the IRS has established many key procedures and guidelines for financial audit of such Corporate Tax Preparation processes by Miami Accounting Firms. That may have contributed to the increasing amount of recommended additional taxes generated by the financial audit.

However, when TIGTA reviewed a non-statistical sample of 51 Miami Accounting Firms Corporate Tax Preparation processes and subsequent financial audit, it found potential quality concerns in 19 of them. For example, IRS financial audit examiners did not always document the steps taken to investigate significant differences between the labor costs deducted in the corporate tax preparation and the amounts reflected on employment tax returns filed with the IRS.

Many of the quality concerns involved issues between the corporate tax preparation and other tax returns that were or should have been filed by the corporation, such as information returns and employment tax returns, or which were related to it, such as the shareholder’s individual tax return.

“Miami CPA Firms, corporations and shareholders that understate their tax liabilities can create an unfair burden on honest taxpayers and diminish the public’s respect for the tax system,” said TIGTA Inspector General J. Russell George in a statement.

TIGTA recommended that the IRS provide additional guidance to first-line managers to improve the feedback provided to field financial audit examiners on using the IRS’s automated information systems to enhance the quality of their required filing checks for financial audit of small corporations, their small business Accountants and their corporate tax preparation procedures.

IRS officials agreed with the recommendation and plan to issue a memorandum to first-line managers concerning the use of automated information systems to enhance required filing checks and address feedback provided to field financial audit examiners.

“We believe ensuring compliance with the filing of all related returns is an important audit technique to enhance voluntary compliance and concur with your recommendation,” wrote Faris R. Fink, commissioner of the IRS’s Small Business/Self-Employed Division.


By Gustavo Viera

Gustavo A Viera, CPA, is the managing partner in Gustavo A Viera, PA, CPA. His experience spans more than 25 years. His public accounting experience includes a senior audit manager at PriceWaterHouseCoopers with a focus in the healthcare industry, and Chief Financial Officer of Hewlett Packard Latin America and Telefonica of Spain. Gus also writes a blog twice a week that addresses issues his clients have at He has also taught in the SBA program in Miami FL, and is admitted to practice in the State of Florida licensed Certified Public Accountant. Gus welcomes questions and he can be reached at Gustavo A Viera, PA, CPA, One Alhambra Plaza Floor PH Coral Gables FL 33134 (786) 250-4450.