Even though tax season has come and gone, it will be here again before you know it and you may find yourself in need of professional tax preparation in Chandler AZ. Whether you’re an individual tax payer or business owner, there are certain practices that you should put into action in order to lower your chances of being audited by the IRS
Pay Attention to Your Deductions
Qualifying for deductions is a wonderful thing, but the IRS might start to get suspicious if your debt-to-income ratio is a bit too high. Make sure you’re only claiming deductions that are truly valid for the tax year. It’s best that you consult an experienced tax preparer in Chandler AZ and double check to make sure that you actually qualify for your deductions.
Make Sure Your Tax Filings Reconcile
All of your tax documents, returns, and related materials should have the same information on them before you send them off to the IRS, Social Security Administration, or your state. Employees should double check to see that their Form 1040 matches the Form W-2 that their employer files. Business owners need to ensure that their quarterly filings match their annual tax returns. Never take any chances when it comes to your taxes or the IRS.
File on Time
Filing one or more tax returns late is another reason that the IRS may audit you, and that’s especially true for high-income employees. Even though Tax Day isn’t until April 15th, it’s best to pretend that it’s a week earlier to give yourself plenty of time to complete your tax return and to make sure it’s received by the IRS on time.
For more tips on how you can lower your chances of being audited by the IRS, contact an experienced professional. Tax laws change all the time and can be difficult for individuals and businesses to keep up with. That is why having a professional tax team on your side can make all the difference.
Even though it takes a lot of work, owning a small business can be a rather rewarding and fulfilling venture. While you’re getting your small business up and running, be sure to take out some time to research the tax side of being a small business owner. Having help with tax preparation in Chandler AZ for small business owners and individuals is always the easiest way to make sure you have your ducks in a row. When tax season rolls around, there are specific documents that you’ll want to make sure you include with your tax return.
LLC and Sole Proprietorship
You’ll need to be sure that you fill out a Form 1040 if your business is a limited liability corporation, LLC, or a sole proprietorship. You’ll also need to complete Form 1040 Schedule C and Form 1040 Schedule SE in order to document all of your business profit and loss and calculate your self-employment taxes.
You and all business partners involved in your business will need to fill out individual Form 1040s and Schedule SEs. All business partners will also need to complete a Form 1065, which is also known as Schedule K, in order to note partnership profits and losses.
You’ll need to complete a Form 1120, also referred to as a Schedule K-1, if your business is set up as an S Corporation. This specific form is also used to note your profits and losses. Make sure that each shareholder fills out an individual form so that they can properly file their personal income tax return. If your business sends periodic payments to the IRS throughout the year, you’ll need to fill out Form 8109 in order to show which tax payments you’ve already made. One good thing about submitting a Form 8109 is that is can potentially lower the amount of taxes that you owe.
Don’t hesitate to reach out to a tax preparer in Chandler AZ if you ever find yourself confused while filing taxes for your small business. We offer our professional services year round to businesses of all sizes.
A lot of people procrastinate doing their taxes. When they do this, they risk making errors and getting fined. Some people even miss the deadlines and receive an additional fee. If you want to avoid these hassles, it might be a good idea to use tax preparation Chandler. Since taxes can be time consuming, it is important to make preparations to ensure you get them done correctly and one time. Here are some suggests to help minimize the stress involved with getting taxes done too late.
You Should Always Be Preparing
Wouldn’t it be ideal if you knew that you could get your taxes done if you started working on them two months before they were due? Of course! However, taxes do not always work like this. Everyone has different needs. Some people’s taxes require a lot of attention. Others have minimal needs before they file. For this reason, it is best to try to continually prepare. You should have a system for keeping track of relevant records and reports that will make the filling process easier. Have a file for receipts and other tax related forms that you update on a weekly basis.
Get Tax Preparation Help
Since individual tax needs vary, it is a good idea to seek a tax accountant in Chandler at the beginning of a new tax year. This way you can have a heads-up on what kind of information you should track throughout the year. Having a go-to person for tax-related questions as they pop up is a great way to stay on track. Building that relationship will also decrease the time needed when it comes time to file. Your tax accountant will have become familiar with the specifics of your situation and will, therefore, have less information to gather at filing time.
Know When You File
Make sure you know when you need to file your taxes. This will ultimately influence when you begin the majority of your tax work. Most people file in April; however, some businesses file their taxes at on a fiscal year system. Some independent contractors and self-employed people need to file quarterly. Whatever your filing date(s), it is important to stay on track and be prepared when the time comes.