What to do When Facing an AuditPosted on September 27th, 2019
Whether by the state or the IRS, tax audits are never an ideal situation. First-time auditees may experience a great deal of anxiety regarding the situation, so treat audits as an extended review of income, and not as an accusation of wrongdoing. Audits do not always guarantee suspicion and may even result in a refund.
Facts about Audits
Miscalculation or suspicion is not always the instigator of an audit. The IRS uses software to choose audits based on an algorithm designed to find the most high-risk situations. Frequently, audits occur due to the relationship. If your business, business partner, or spouse are audited, it’s likely that you may receive one as well, based on your proximity to that person.
Keep in mind that audits will never start over the phone, and anyone claiming to be the IRS in this way could be a scammer. Instead, audit notifications come through the mail. This notification will identify items on the return that are in question and will request specific documents. Typically, the taxpayer is given 30 days to respond. It’s best not to delay because if money is owed, the debt will continue to accrue until the issue is resolved.
First and Foremost: Contact a Tax Professional
Professional audit representation is a much safer bet than representing yourself. Without intimate knowledge of taxation, it can be easy to miss points that would negate or resolve points of discrepancy. With the IRS speculating possible negligence, reporting inconsistencies, or fraud, it is imperative you use all available resources to protect yourself. It is best to let a professional handle this pivotal moment in your financial history.
Avoid Audits in the Future with Professional Tax Preparation
Going forward, enlist the help of a professional when tax planning and preparing to file. Their professional experience can improve your chances of a successful tax season. Accurate reporting lets individuals and business ethically obtain the best deductions and retain as much of their hard-earned income as possible.
Besides tax and audit assistance, accounting firms offer additional benefits through services for personal finances and business. Free your time and mind of the burden of intensive financial management with the help of a professional accountant.
Expert IRS Representation
At Chursenoff Accountancy, Inc. we have the skills and the expertise to handle your IRS audit, no matter how complex. To learn more about how we can help you navigate the process, give our office a call today.
When to Start Tax PlanningPosted on June 11th, 2019
Tax planning is the art of minimizing your tax liabilities and maximizing your deductions to put you in the best financial situation possible and requires foresight and preparation.
It’s important to plan for your taxes promptly to make the filing process stress-free and to deliver the most accurate return. In general, it’s a good idea to plan earlier rather than later. Some people must plan throughout the entire fiscal year, and in some cases, years ahead, to get the maximum benefits. Some strategies will be more effective with long-term preparation.
First, Consider Your Tax Bracket
Your tax bracket will inform you how much you can anticipate paying in April, and how soon you should begin efforts to minimize payments. Tax brackets are one area of taxation that offers you some options. You can place yourself into lower tax brackets depending on single or married status and deferred income efforts.
Consider both your marginal tax bracket as well as your effective tax rate. Keep in mind the U.S. Income tax system is not flat, but progressive. So as your income passes the standards for each bracket, the total amount owed increases incrementally.
Deferred Income Strategies
Although planning a deferred income strategy might take years, it’s potential for benefit is exponential. Setting aside deferred income into retirement accounts makes for fewer taxes in the short term and more comfortable retirement in the long run.
Money deposited into a tax-exempt retirement account (such as an IRA or 401k) doesn’t count as earned income for that year. Strategically setting aside just enough to lower your tax bracket now can return exponential rewards in the future.
Gifts and Charitable Donations
Donating a portion of your income to a charity organization or family member counts as untaxable income. If a manageable amount of money stands between you and a lower tax bracket, consider parting with it to gain financial benefits in the long run.
A successful tax plan has forethought and includes the latest updates in taxation. Stay abreast of the latest tax laws with professional assistance from Chursenoff Accountancy, Inc. Call our firm and schedule a consultation today.
Helping You Avoid Payroll ProblemsPosted on February 18th, 2019
Whether you have one employee or one hundred, payroll is a vital part of your business. It’s also notoriously complex, and a struggle for many small businesses to manage.
At Chursenoff Accountancy, Inc. we have years of experience helping businesses like yours effectively manage their payroll. From pay stubs to tax forms, we’re here to help you navigate it all so that your employees stay happy, and your business remains compliant.
See what a professional accounting firm can do for your payroll when you schedule a consultation today!
First-rate Payroll Services
We put our full effort into providing the best payroll services for every company we work for, no matter the size. Whether your employees are salaried, hourly, contracted, or a mix of employment statuses, we can deliver the attention you need to ensure each employee is paid accurately and on time. We also work with you to ensure that each employee is properly categorized, preventing situations that could lead to costly payroll audits. We can also set up and optimize your in-house payroll systems as needed.
You can depend on us to deliver on your payroll needs, including:
- Managing payroll services
- Applying changes in federal, state, and local tax
- Payroll check printing
- Direct deposit and electronic fund transfers (EFT)
- Monthly, quarterly, and annual payroll tax reports
- W-2, W-3, and 1099 processing
- Paying 3rd party withholdings
- Liability and Worker’s Comp. Insurance
Why Outsource Your Payroll?
Laws concerning employee wages, taxes, and withholdings are highly involved, and employers must follow them strictly. Failure to do so can leave you at the mercy of the IRS, and fines for payroll noncompliance are exceptionally high.
Paychecks that come late or full of errors also lead to dissatisfaction in your employees. This could not only cost you valuable talent but result in further costs in finding and training a replacement.
A dedicated payroll professional can avoid all of this. Smaller companies, however, may find creating an in-house accounting department challenging. Outsourcing your payroll removes the need to hire specialized employees, reducing your overhead and lowering the risk of costly filing mistakes.
Reliable Payroll Services When You Need Them
As a business owner, your most precious resource is your time, and the last thing you need is another responsibility taking up that time. Let us handle your payroll processes so you can get back to what’s most important: running your business.
Don’t wait until your payroll is out of control. Schedule your consultation with Chursenoff Accountancy, Inc. today.