Preparing an income tax filing can be a daunting experience for a most people except the tax experts. The Tax Code consists of 80,000 pages and, while the vast majority of these pages do not affect the average individual or business a tax expert is needed know which does. Many tax payers make mistakes which results in fines and penalties. Deductions are often overlooked and income is overstated. Occasionally, deductions are taken that should not be and income is understated.
Tax credits are overlooked by individuals and businesses which do not know about them. The mileage rates for business and charity work change almost every year. Depreciation rules change and many other business deductions for computer equipment and tools change. America is facing tax law changes this year and next year and perhaps every year. Tax Preparation in Williamsburg VA keeps up to date on all of these issues. Staffs have developed systems to sort the tax code changes that affect their clients. You are on the right path if you have one of these tax experts working for you or your business or both.
Depreciation is a problem because there are more than one depreciation schedule. The schedule to be used depends on what is being depreciated. This process can become very complicated for a business which has multiple schedules. Reporting employee compensation is an important deduction but, the employee portion of FICA is not deductible.
Tax Preparation in Williamsburg VA begins with an examination of the business records or a family’s record of deductions and income. The best tax preparation begins with a complete and accurate set of financial records. It is a good idea to have the tax preparer structure the accounting system because he will be able to go through the accounting system by use of a computerized account analysis program and extract the data needed to prepare a tax return. If the accounting system is maintained as set up by the tax preparer, then there will be no mistakes and every deduction and expense will be included in the tax return. Tax credits and other tax deductions which are new or which are not included in the accounting system will be added by the expert. No one wants to meet the iRS in an adversarial way. You can avoid this by having a Carmines, Robbins & Company, PLC prepare your tax filings.