Alexander Felsch, Author at Pupilo Income Tax
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Posts by Alexander Felsch

What Does A Tax Accountant Do And What Are Some Requirements For The Field?

For most working within the tax accounting field, they face high levels of complexity due to the changes in tax laws. Tax accountants work tirelessly to make sure that both individuals and companies follow the laws. However, this is done by ensuring that they complete their state and federal income tax forms and send them in on time. Read on as we dive further into everything that tax accountants do and to answer your question “should I hire a CPA to do my taxes?”

Some of the tax accountants out there offer tax advice and tax planning for both individuals and businesses. This is done to help them save additional money with taxes. While all careers can be challenging, one in tax accounting is even more challenging and comes with big rewards. However, this career path depends on a series of set goals while going down the educational or career road. 

Tax Return Preparation

Within the world of accounting, several accountants prefer to be self-employed. However, there are still many who choose to work for various high ranked accounting firms as they gracefully assist their clients with preparations for tax returns. As part of their regular work life, they also meet with clients to properly assess their needs as it applies to their finances. 

When these meetings take place, a specific set of documents is required. These are any or all financial documents, pay stubs, and investment income statements. To be on top of it all, they must also continue learning more about the tax laws as soon as they change. They even search for credits and tax deductions for clients while figuring how much they owe in taxes. 

Tax Planning

Most if not all business decisions lead to a series of ramifications when it comes to taxes. In essence, this becomes quite challenging. While businesses work with international clients, the entire process becomes more complex and creates more challenges. However, this simply increases the market for tax planning professionals. There are also some benefits of filing your taxes online.

While some accountants specialize in this form of planning, the primary objective is to develop a creative and effective strategy for any financial situation. Most medium and big corporations chose to hire external tax accountants along with their internal ones. This allows perfect plans that run long term and they save a ton of money over time with their taxes. 

What Does It Take To Become A Tax Accountant? 

From an educational perspective, tax accountants are required to have a master’s degree or a bachelor’s degree in accounting. In the case of new graduates, they can seek employment within several public accounting firms. This allows anyone to easily benefit and enjoy all the competitive advantages than a regular public accountant. 

To become a certified public accountant, prospects must firstly obtain 150 credits in college. After doing so, they can sit the exam and then progress along the road to one-day being a partner or a director in a hotshot firm. 

Good And Bad

While there’s always good in any field, there’s always some bad that comes with it. Careers in tax accounting generally fascinate and appeal to those who love numbers. It even speaks to those who love problem-solving and meeting demanding challenges. So if you’re interested in working in a fast-paced environment, becoming a tax accountant just might be the perfect career for you. Look for tax preparation services in your area so you can have a consultation.

Even if you’re thinking about switching, it’s never too late to do what you’re interested in. One of the main downsides to being a tax accountant is the harsh long hours. When tax season comes around, it becomes harder and deadlines seem overwhelming. 

As we conclude, we have just looked at what tax accountants do. Tax accountants do more than just file taxes all day. There are many reasons to file your taxes early, it helps them to prepare ahead of time. They work long and sometimes hard hours to meet deadlines and facilitate all of their clients.

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Top Reasons To File Your Taxes Early

Tax season is coming, and it is good news for someone who is expecting to get a high amount of tax refunds. If you need to prepare tons of documents, it might not be something you will look forward. It means having to get everything organized, making an appointment with a tax accountant, and finding out exactly what it is that you owe the government. Whether you plan to hire an account or get tax preparation services, you should not procrastinate. Here are just a few of the reasons that you should get your taxes done early.

Another reason to get it done and over with is the fact that the laws tend to change each year. While often the laws can have little effect on how much you own, sometimes it can be more drastic. By getting them done early in the year, you are giving your tax accountant the time to navigate through the new laws and how they affect your situation. Once it is complete, you will know exactly what it is that you owe. The sooner you know what you owe, the better since you can adjust your finances accordingly.

A surprise in an increase from the year before could mean making some changes in your lifestyle or strategically allocating money in different ways. Having a couple of months versus a couple of weeks to accomplish this can help you to avoid other issues, including penalties and fees. If you don’t want to hire an accountant, you can do it online. There are a lot of benefits of filing your tax online, such as saving time and less hassle.

Once you process your tax early, you can focus on other things you need to work. It is such a relief thinking that you don’t need to worry more about submitting and preparing all documents for your tax. Some people wait until the end of the season and need to pay for penalties. If you are already asking yourself, “Should I hire a CPA to do my taxes?”. If you have lots of things on your plate, you must have someone to assist you in preparing all the necessary documents. You need to do it early so you can get over with it as soon as possible. In this way, you can focus more on important matters instead of worrying.

Finally, by completing your taxes early, you are doing a genuine service to whoever you use to file your taxes. The bulk of their work each year takes place during just a few months. What does a tax accountant do? Aside from working 80 hours a week to help their clients file taxes. Not only are they working to keep you within the law, but they put in tons of hours learning about ways to help you to pay as little as you are legally required. Do them a favor, and make your appointment with them early in the season. While you may not be able to take away the overwhelming amount of work they will be doing in the coming months, you can at least know that you weren’t one of the people making them stay late into the night at work completing your taxes.

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Top Benefits Of Filing Your Taxes Online

There are so many reasons to file your taxes early to avoid tons of problems. Few people look forward to filing their taxes. Getting out of the calculator and sitting in front of a stack of forms can stress anyone out. Thankfully, you can set the paper aside and file your taxes online. You won’t even need a calculator because the math is done for you automatically. Filing taxes online is faster, and it is so much safer because you won’t need to send anything in the mail. Read on to learn about the benefits of filing your taxes online and how to get started.

Filing Online Is Safer

Sending private data such as your tax information through the mail would increase the possibilities of identity theft. If someone intercepts the mail, they will have access to your Social Security number, which they can use to steal your identity and take out loans in your name. 

When you file online, you won’t have to worry about your tax forms getting lost in the mail. They securely transmit the data to the IRS through the internet. No one can intercept the data, and you can quickly get your tax forms sent to the IRS without experiencing any safety issues.

Online Filing Is Faster

Should I hire a CPA to do my taxes? Yes, if you have so much to do, you might also still need to have a CPA to assist you. Filing your taxes online is the fastest way to get your tax return to the IRS. It takes about a minute to transmit your forms. You can file your forms from anywhere that you have an internet connection, which makes this the best choice when you want to quickly get your forms in.

Filing online is free. You just have to set up an account through the IRS website. You can complete and file your taxes from anywhere that you have an internet connection. You won’t need to leave your house to go to the post office and some services even let you do your tax forms on your mobile device. There is no wait and the IRS will let you know in 24-48 hours whether they have accepted your return or not. If there are any problems with your return they will email you and let you know what the issue is so you can correct it right away and resubmit it.

Preparing Your Return Is Easier

Filing your tax return online is a lot easier because you won’t have to do so many calculations or even learn the tax code. The forms are easy to fill out, online it’s the same on what does a account do. They do the calculations and most of the work for you. Just answer the questions and enter your basic information and your taxes will be done quickly and without a lot of hassle. The software handles all of the hard work for you.

Get Your Refund Faster

If you are getting a big refund and want your money fast, you can’t beat electronic filing. Not only will your return be processed faster, but your refund is deposited straight into your checking account so you won’t have to wait for a paper check to be mailed out. 

Many people receive their refund in two or three weeks, depending on when the IRS accepts your return. You will receive your refund much more safely as well since you won’t have to deal with checks getting lost in the mail or other problems. If you want to get your money fast, filing your taxes online is the way to go. You will have your refund in no time.

Don’t spend another minute struggling with paper tax forms. Online tax preparation will take care of your taxes fast. Your tax return will be more accurate and you can get through the entire process faster and get that refund into your bank account.

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Should I hire a CPA to do my taxes?

There are so many reasons to file your taxes early and hiring a CPA to do your taxes. If you want to avoid stress, you can hire a CPA to work for you. You may find relief by getting someone to assist you during this tax season. It is not an easy task to do, they spend long nights preparing all the necessary documents for their clients. Here are some factors you need to consider before hiring a CPA.

Are The Kids Going Off To School?

Most families do not have the resources to fully fund their child’s education after high school. You may qualify for federal financial aid, or FAFSA, if this is the case. Student loans granted by the government partly depend on your taxes. It is best to have them all the way straightened out if you’re planning on having your child apply. 

What does a tax accountant do? A CPA can make sure that you don’t have unwanted income, or assets stating that your child is the owner of them. It can hurt your ability to get financial aid for your child. CPAs know the ins and outs of FAFSA. They will be able to tell whether or not assets in your child’s name will hurt their ability to pay for school. They help in some situation

Has The IRS Contacted You? 

It is never a happy occasion when the IRS contacts you. They’re usually not doing it to say, “Hey, great job on paying your taxes!”. Typically, they are contacting you because they believe there is a problem. In a lot of situations, there isn’t. A CPA knows the ins and outs of tax law on both a federal and state level. They will be able to provide you with the support you need to navigate the IRS. If they conduct an audit for you, they will give a presentation in the court.

If you receive a letter, it can be hard to understand what the IRS means. It can be vague to understand at times. A professional accountant can read their writing and know what they ask. You may give them the wrong information if you aren’t sure what they want to know. 

Do You Have A Rental Property?

Renting out a home to another person can complicate taxes. It’s essential to make sure you are filing them correctly by having a CPA tell you what you need to do when reporting the income for this. Also, having rental property can lead to deductions in some situations. Be sure to let a CPA see if you qualify. If you don’t have a CPA, you can search on Google “CPA tax accountant near me“, and it will recommend the best CPA in your area.

Have You Recently Been Divorced?

It’s especially important to take advice with your taxes if you recently have a divorce. It’s even more essential if you have children. It complicates more because of the change in the assets you carry. Your divorce attorney will not know to figure it out. A CPA expert will know the ins and outs of filing taxes for those who have been recently divorced. Even more than that, you may be entitled to deductions if you are the parent with custody. 

CPAs Can Ensure That You Don’t Get In Trouble 

A lot of people become anxious during tax time because they are worried that they will have a mistake in the report. Reporting that isn’t done correctly can lead to trouble. A CPA that’s worth a salt will do a proper job that leads to the client receiving no contact from the IRS. If you don’t want to hire a CPA, you can file your tax online, and there are lots of benefits of filing Your taxes online. Paying taxes is always simple when you have someone else do it for you.

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Outsource Accounting In Yonkers: Is It Ideal?

Reasons To Outsource Your Accounting Operations

As a business, you are likely looking for different ways to grow your bottom-line. One of the best ways to do this is by outsourcing your accounting operations.

Tax Preparer Yonnkers1. Use Your Time More Efficiently

One of the reasons is to use your time much more efficiently. You will be able to free up a lot of valuable time that you can spend throughout other areas of your business. After all, spending all of the time it takes to look over your books and focus on back-end operations can end up robbing you of valuable time. By re-focusing this time on other areas of your business that drive growth, you should be able to maximize profit. Outsourcing your bookkeeping can keep your entire office focused on result producing activities in your business.

2. Reduce Costs

By outsourcing your accounting operations, you will be able to save money by minimizing the number of benefits you have to allocate to full-time or even part-time employees. By hiring an accounting company to handle it outside of your business, you will only have to pay for the accounting service. Thus, you will be able to save in not only productivity costs, but also in payroll expenses. The value you are getting by outsourcing your accounting requirements can end up saving up to 40 percent of your total expenses.

3. Minimize Fraud

Small and privately owned businesses are typically the most common victims of fraud. This is primarily because small companies don’t have access to hiring a CFO who is capable of looking at everything involving billing and accounting. Having proper accounting control and external audits can cut down on fraud. By outsourcing your accounting services, you will be able to have a controller who is capable of looking for signs of fraud within your company and they will be able to recommend and implement fraud protection controls within your business.

4. Experts

By hiring an accounting service, you will be able to leverage their knowledge and expertise. You will be able to hire a team of professionals that know the in’s and out’s of tax codes and tax laws. This will allow you to have a team of professionals working around the clock for your business which can provide you many better-experienced accountants at a much-reduced price point.

5. Collaborative Accounting

Having a team of accountants is going to be a much better option than hiring a singular accountant to maintain your books. That is exactly what you would get with an in-house option. Whether you are handling it on your own or you have an employee doing it for you, it is not going to get the attention it deserves within your business. There are all kinds of exemptions and loopholes and having a single person working on finding them is not going to be enough. By outsourcing your accounting operations, you will be able to have a team of experts working on your numbers for you. They will be bouncing ideas off one another and they will be double-checking your books.

6. Scalability

Having an outsourced accounting service working for you will allow you to properly scale your business, as needed. You will be able to expand and grow your business as intended. They will be able to help you continue to grow your profits no matter what your goals are.

Contact us or call us now for any help with accounting, bookkeeping, auditing, and income tax preparation!

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Economy Grows With The Big Help Of Taxation In Yonkers

How Taxes Can Affect The Yonkers Economy In The Long Run

The economy can dictate a lot of things. Economic activity is essentially a reflection of what consumers, businesses, and governments wish to buy or sell. In short, the factor of demand plays a big role. Over the long haul, supply is what dictates overall economic potential. The size and skill of the workforce are what dictates our productive capacity which includes everything from the efficiency of our machines, the total number of and quality of our buildings, computers, vehicles, and other physical capital that is used.


Yonkers Tax PreparerTaxes can ultimately affect everything from the supply to the demand through incentivizing consumers. Minimizing marginal tax rates on both salaries and wages can help provide an incentive for people to work more. Whereas, improving upon the earned income tax credit will bring many more people into the workforce who are deemed low-skilled. By minimizing marginal tax rates on returns of assets can really encourage more investing and saving. Whereas, minimizing the marginal tax rates on the income of businesses can result in companies investing more domestically instead of taking their money abroad. By providing tax breaks on research and development, you can encourage many more new ideas which can help to provide a pillar for the economy to grow.

That being said, providing tax reductions can also have a negative impact on the supply channels. For instance, if a tax cut increases a worker’s income after taxes, they might decide they can do without working as hard and they might spend more time doing leisure activities. This type of increased income effect can work against what is known as the “substitution effect,” which provide more incentive through financial reward to work more.


Providing tax cuts can end up slowing down the economy as a whole by increasing the total amount of budget deficits that exist. When the economy is operating at its peak efficiency, government borrowing can be financed by pushing capital that would have otherwise gone into private investments or by bringing in foreign investors and borrowing from them. Therefore, government borrowing can either reduce private investment which can also result in a reduction of productive capacity or it can reduce the total amount of future income that goes to American residents. Regardless, future well being can be reduced by budget deficits.

Tax policies can have long term consequences that not only depend on the incentive efforts but also on the various effects of the budget. If Congress works to reduce the marginal tax rates on the incomes of individuals, the long term results are either going to be positive or negative based on whether or not the resulting impact on both investment and saving trump the potential consequences that the increased deficits bring.

Putting Everything Together

This ends up leaving a lot of good questions as to how much impact large incentive and deficit effects are and how to effectively model these things. Both the Congressional Budget Office and the Joint Committee on Taxation use various models that alter assumptions about how forward-thinking consumers are, how the country compares and rests within the global economy, and how the borrowing from the government impacts the incentives of private investment. Likewise, how both consumers and businesses react to changes in the tax structure. The one area that many agree on is that the most growth-centric policies are the policies that increase incentives to do everything from work, to save, to invest, and to innovate without causing the deficits to skyrocket.

Contact us or call us today if you need help to prepare your taxes! Visit our blog for more related articles.

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Small Businesses In Yonkers Face Serious Accounting Challenges

Specific Yonkers Accounting Issues You Need To Master

Small business owners have to deal with many challenges each and every day. Accounting is often one of the biggest of them. Read this content to find out how you can manage your finances if you’re an entrepreneur.

When you run any small business, you have to wear more than one hat. Your responsibilities will range from maintaining great relationships with your clients to hiring great employees to market your brand. On top of all that, you’ll need to track your business accounting and profits.

Accounting might not be your personal passion, but keeping organized books is critical for any small business. Accounting is a language of business, one that talks about financial growth. It can translate numbers into understandable statements about the profitability of a business.

Usually, accounting incorporates processes for the recording, summary, and analysis of the financial transactions of any business. That’s hard enough to do as it is. However, there are many other frequently experienced financial difficulties that small business owners have to get around. The following are some of the primary accounting challenges which entrepreneurs have to put up with, but also you can overcome them.

Here are the specific accounting issues you need to master:

1. Cash Flow

Managing the cash flow of any startup or small business isn’t an easy thing to do. Per a study from U.S. Bank, 8 in 10 businesses that wind up failing do it because of having cash flow issues. Owners of small businesses find it hard to earmark the funds they need to handle overhead and keep the lights on. To master cash flow, carefully look over your bills, and be firm when you chase customers for payments.

2. Unforeseen Costs

Consider the example of a restaurant netting $200,000 every year after its expenses. That looks like healthy circumstances, but not after someone burns themselves with a cup of coffee and files a lawsuit that wins them $2 million when the restaurant in question has no insurance coverage. Even much smaller expenses, like single-charge taxes on every business in a certain region, or just rising costs for goods, can wind up doing a lot of damage to a business’ bottom line. Optimizing your existing credit not only helps you manage short-term expenses but also helps you track your long-term profitability so that you can weather changes in costs without sacrificing liquidity.

3. Being Prepared For Disasters

Natural disasters are usually rather unpredictable, and they have substantial impacts on companies and citizens. However, they hit smaller firms really hard. You might have a few disaster recovery strategies planned out, but you still need enough cash on hand to make sure that you can revive your business following a catastrophe.

4. Taxation

Every company in the United States has to deal with paying taxes. However, taking advantage of the right deductions means that you can lower your final bill. If you have a home-based small business, then home office deductions are crucial to your profits. The National Federation of Independent Business claims that investing in your business lets you deduct investment costs immediately. As such, investment costs like these can get re-invested right back into your company.

5. Payroll Management

If you’re a small business owner, then serving as your company’s payroll or HR expert can be really hard. If you don’t know about HMRC’s RTI, then you don’t really know what tax code applies to bring new staff. How are you going to pay your employees along the way? These are all issues that can come up along the way, along with others. Recent research showed that half of all polled businesses claim they have no room for improvements in the payroll processes that they use right now. Other common issues include administrative burden, compliance issues, tracking absent employees, organization inconsistency, under- and over-due payments, and improper tax filings.

6. Staying On Track With Expenses

Maintaining good tracking of all receipts and your recurring expenses can get really hard to do. If you want to keep up with the market, much less get ahead of it, then you need to maintain great records. Luckily, times have moved on from stocking all paper receipts in storage. Many different accounting software options give you the option of going paperless. Every option is distinct, so you have to do your homework and due diligence in determining which one best suits the needs of your company.

7. Reconciling The Books

Closing your books is often annoying, particularly if there is no proper accounting system in place. Making a mistake in your books is quite easy, leading to potentially incorrect calculations, IRS audits, and misleading analysis of the data. You need to verify every single business transaction, perhaps monthly, weekly, or even daily. You need to get in the habit of going through your accounting books close to the end of every day when those transactions are still fresh inside your head.

8. Financial Analysis

Making solid financial decisions uses three steps, and they are interpretation, analysis, and advice. Regardless of what specific reports you choose to use, whipping up the numbers is only the first part. What do all those numbers really mean? More crucially, how can you make them better? You need to analyze and interpret the numbers so you can find the best possible advice and decisions. If you do this, then you make your financial position even better in your current market.

Prevent Accounting Errors

One hugely significant task for any small business is picking a great accountant. An experienced CPA or accountant can guide your business in preventing all the mistakes listed here. A great accountant can also advise you on every one of these issues, as well as others, so your business can grow, even in hectic markets.

Hiring an accountant can be expensive, but it’s still cheaper than many of these mistakes. It also frees you up to do what you do best, which is your business! Call us today or contact us via our website if you need any professional help with accounting and bookkeeping tasks.

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Knowing A Proficient Tax Preparer In Yonkers

Essential Skills A Yonkers Tax Preparer Should Possess

Personal Income Tax Preparation in YonkersWhat is the work of tax preparers? What skills and expertise should they possess to work and deliver effectively? Well, these days paid tax preparers are required to prove their technical skills knowledge and capabilities. In what way? You may wonder. The Internal Revenue Service needs them to tackle a federal tax law examination to prove their eligibility for the job. However, to become a tax preparer no formal education-related experience is necessary. Though to become an expert so vital skills are necessary to ensure you can handle all tax returns related tasks. To get a few insights on the relevant qualities, read on.

Perfect Communication Skills

While dealing with finances your communication should be professional and convincing. Let the client have no doubts about working with you. Ensure to listen keenly and give clear, straight-forward and truthful feedback. Also, be in a position to explain and give detailed information on every idea behind tax laws with ease. This way, you are a good fit for the job.

Ability To Think Critically

In the tax field, a couple of issues require you to think deeply, widely and intensively. Does a client qualify for credits and deductions? How should I group the various types of income and losses? It’s up to you to reason and come up with the right answers to such questions. Again, you must be able to analyze an issue and make the right decision. Such may include, deciding on what action to take. For example, what tax write-off should you go for?

Have A Strong Eye For Details

As a tax preparer, it’s required that you pay close attention to every detail. This is to avoid errors, wrong entries, and miscalculations. A slight inaccuracy could mean something terrible for a tax return. Such mistakes could cause wide problems. The client may lose money, and worse they may have a case to answer with the Internal Revenue Service and other tax agencies. To avoid such problems as a tax preparer you should be in a position to thoroughly review your work, spot errors, and do rectifications immediately.

Concrete Knowledge Of Mathematics

While dealing with taxes, you can not escape numbers. This means you need to have a solid grasp, knowledge, and understanding of all mathematical operations. Be able to carry out addition, multiplication, division, calculate percentages and also work with decimals. Once you are well versed in these basics, you will easily work with complex formulas and perform any calculations.

Company History Of Pupilo

We began our operations in 1985. We started small in the local area of Yonkers in New York. Since then, there has been no turning back. We are now offering services countrywide, and our specialization is in accounting and tax consulting.

We offer almost every business solution, from consulting and auditing to debt settlements and book-keeping. We have two offices from where we serve our clients – over 700 companies. Our main office is in Yonkers, and we have another office in the Dominican Republic.

What service can you get from us? We are open to Tax Consultations, any form of Auditing and Filing Income Taxes for both Corporates and Businesses. We have a large number of professionals in the USA and abroad to sort you out.

Let your business grow smoothly, as we take care of the finances.

Do you require your income tax return prepared? Contact or call our professionals who are always ready, open and willing to assist. Be sure to get a free quote once you do so.

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The Importance Of Professional Tax Services In Yonkers

Reasons Why You Need A Diligent Yonkers Tax Preparer

Whether you earn $50,000 a year or 50 million dollars, taxes are a big expense. This is one of the reasons why many individuals hire the services of a tax expert to help them prepare their returns. Furthermore, a tax professional can advise about the best way to structure certain financial transactions over the course of the year to help reduce your tax bill. This is what is known as tax planning. In the majority of cases, unless you happen to have a background in accounting, knowing the most effective methods for reducing taxes is very difficult.

CPAs (Certified Public Accountants) attend school and complete tough exams to ensure they know all there is to know about tax law. While it may take you several hours to identify one tax credit, a CPA is likely to already know about all the tax credits applicable to your situation. It is for this reason that more than 60% of taxpayers hire a professional when tax time approaches.

If you’re still not sure, read through the following 6 triggering events to discover more about why hiring a tax professional is likely to be in your best interests:

1. You’re Running Short On Time

The tax filing process should never be rushed. If you wait until the last minute to start completing your taxes, there’s a good chance you’ll find yourself short of time. Tax season can be the busiest time of year for many businesses and rushing the tax filing process restricts your ability to avail of all possible tax deductions or tax credits.

Effective tax preparation requires a lot of research. If you are looking to pay the least possible amount (who isn’t?), you need to know your way around IRS forms and tax law. If you aren’t a CPA, it’s very unlikely that you will be acquainted with all the ways you can reduce your bill. The same rings true for those who own businesses. Time for business owners is particularly limited as the tax filing deadline approaches. From managing your customers, employees, and business operations, time is precious. While tax time happens at the same time each year, it always seems to be inconvenient.

2. You’re One Of The Millions Of 1099 Contractors

Do you get 1099-MISC forms from the IRS at the close of each tax year? Do you run your own business? If so, you require a tax preparation service. Compared to a typically W-2 employee, 1099 contractors have more going on. There are multiple expenses surrounding your business. And, if you don’t keep track of those expenses, you will miss out on thousands, if not tens of thousands, of dollars in tax savings. Are some of your customers spending more than $600 with your business each year? Depending on the sector, all of your business’s customers could be paying you dramatically more than that. In many cases, those customers should be issuing 1099-MISCs to you at the start of each year.

The 1099-MISC form reports the total income they paid you during the previous tax year. 1099-MISC is required for all contractors to file taxes. The income on your tax return is calculated from the figures on all the 1099s you receive.

3. You Have Outstanding IRS Issues

The feared letter. Sent from the dreaded IRS. The IRS will never call you or email you demanding immediate payment. They will, however, send you a letter in the mail. Contained in the letter is typically a date, relevant tax years, reference number, your personal details, and all the penalties, taxes and interest fees you owe. No one wants to get such a letter, but things can happen. Often due to an omission, error, or suspected fraud on your previous year’s tax return. It doesn’t matter if you file your taxes through a tax firm, you are ultimately responsible for all information submitted on your return. However, a CPA or tax firm can represent your case to the IRS. For instance, you might not agree with the amount the IRS states that you owe. In such a case, a CPA can represent you as you face the IRS. A licensed CPA will build a case advocating in your favor that is most likely to be received in good faith by the IRS.

CPAs along with other tax services are there to help you avoid an IRS dispute going to court. CPAs know how to get penalties reduced or eliminated from your account. They often have decades of experience communicating with the IRS in a way that doesn’t incriminate their clients and helps them to get back on the good side of the IRS. The reality is that you can go to jail over IRS tax issues. Do you want to find yourself facing the IRS in court without legal representation? Of course not! It would be foolish to try to fight the IRS alone.

4. You Have Fallen Behind On Your Taxes

If you have fallen behind on your taxes and have not received a letter from the IRS, you should not assume the storm has passed. The IRS has up to 7 years to challenge you on your taxes for any specific year. And, if you haven’t yet received a letter from them, you better believe it will arrive soon, especially if you owe the IRS taxes. It will be much better for everyone if you file for any missed years instead of waiting for a dreaded IRS letter. To make sure everything is completed correctly, you should hire an accountant to file taxes from prior years on your behalf.

5. Big Life Changes

If you are experiencing a major life event, such as a death in the family, a divorce, a life-threatening medical diagnosis, etc., outsourcing your taxes is a good idea. Whether you’re getting divorced, buying a new home, having a child or getting married, the way your taxes are completed will change. If you got married, for example, during the year, there will now be more options open to you when it comes to tax credits and tax deductibles. You and your spouse could file jointly or separately. Each option offers different credit eligibility and deduction thresholds. In some situations, it can be more advantageous to file separately rather than jointly. An accountant can outline the differences for you and help you choose the best option.

6. Not Just A Tax Nerd

A CPA can help you with a lot more than just filing your taxes. Generally, a licensed accountant can act more like a financial strategist for you. That can provide you with expert financial advice regarding business expansion, retirements, or investments. Accountants have clients from all types of industries and their widespread knowledge can provide you with valuable insight beyond your tax return.

Give us a call or contact us today for professional help with your income tax preparation.

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Helpful Tips For Preparing A Corporate Tax Return In Yonkers

The Documents Needed To Prepare For A Yonkers Corporate Tax Return

If you have a partnership company or a limited liability company, then you must prepare and submit an annual corporate tax return. The structure of your firms as well as how you choose to others will have a significant role in determining the documents that you’ll need to prepare the tax return sufficiently. Under certain circumstances, even you as the business owner could be required to present personal tax returns together with the corporate tax return.

Form 1040

If you’re a limited liability company (LLC) or you are also an employee of your firm and pay yourself a salary, the income you earn as an employee for your corporation must be included on your 1040. There are corporations that are viewed as “pass-through” entities which mean that loss and profits “pass-through” the firm and to the owner of the corporation. For this reason, the owner or member of the firm is required to list their profits, losses, and income on personal income return.

Form 1120

Form 1120 is for annual corporate income tax return. It also includes Schedule C. Form 1120 requires you to provide some basic info about your corporation, including the Employer Identification Number, a list of all deductions including compensations made to the board of directors or officers. Form 1120 also lists other schedules that may or may not be relevant to your business. For instance, Schedule A covers the cost of goods sold; Schedule K includes information regarding your business, such as the type of business and your accounting.

Form 1065

If your business is a partnership; for instance, an LLP (limited liability partnership), you may have to fill out form 1065 for the associated income. According to the IRS, partnerships do not pay taxes on their income. But, the profits and losses “pass-through” to the partners’ personal tax returns.

Other Forms Related To Corporate Taxes

If your corporation has employees or independent contractors, you’ll also have to submit other forms. For example, you’re required to electronically file Form 944 with the IRS for federal unemployment taxes. Also, if you withheld Medicare and Social Security from your employees, then you must submit both W-2 and W-3 forms to the Social Security Administration.

For every independent contractor that you pay more than $600 for work completed or other services, you’re required to include Form 1099-misc. If your corporation paid more than $10 in broker fees or royalties, you must also issue Form 1099-misc. Note that different forms will have different deadlines. Consult with a certified public accountant or your attorney to know the dates as well as the deadlines for paying your corporate taxes.

We know you want to keep an eye on the big picture and that’s precisely why we will work with you closely to minimize your tax liabilities and maximize your allowable deductions.

Reach us or contact us for expert help with preparing your corporate tax return.

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