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Businesses Need A Good Tax Professional to Succeed

07th February 2011
By Phil Salazar in Taxes
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You can probably ask any lawyer or accountant to give you legal advice or help you find a way out of your tax debt; but, they'll probably advise you to look for a specialist to help instead. Tax lawyers, licensed agents and CPAs know the tax laws, both federal and state laws, in their sleep.

CPAs are likewise licensed to practice in a state and are subject to disciplinary action if they violate certain ethical rules. Accordingly, a CPA must comport him or herself ethically at all times in his or her dealings with you. Again, like the advantages of using an attorney, it's nice to have leverage with a CPA who has an incentive to work ethically in order to avoid any reports of ethical lapses to the state ethics board.

What can an this type of tax professional help me with? This is a question that many taxpayers find themselves asking. Some of the most common situations include: collections, appeals, and audits. Of course, you can hire an enrolled tax agent no matter what type of problem you are dealing with - there is nothing too big or too small. As long as you get the right help you are doing what is best for you.

Like I said, the decision really boils down to a matter of personal preference. It is also a matter of finance, as well. Most tax software applications are available for under a hundred dollars; most tax preparation services are not. Also, tax preparation programs will not offer you a tax rebate anticipation loan, which have become a very popular reason to use tax preparation services.

What problem are you having? The answer to this question will help you to determine which types of tax professionals to speak with. From there, you can make a decision on who to hire. Even though you may be in a hurry there is no need to rush. You want to make sure you hire the professional that is right for the job.

If you're looking for someone online, look at their web page. If it has blatant advertisements, or exaggerated self-promotion, move on. If the tax professional has a video they did themselves, watch it so you can get an idea who is behind the email or phone. It's common sense! Ask yourself "Does this company look like one I want to deal with, one who may fit the bill above?". Of course you probably want to check out their prices as well. If the prices aren't listed contact them and ask.

We encourage new comers NOT to steal clients from the franchise tax services. The tax payer will tell you all kinds of stories about why he/she should stay with you. Don't buy into it. It is a bad practice to take from the hand that helped you get started. Instead, tell the taxpayer that if he/she is still looking for a permanent tax professional next year; to look you up in the phone book or call 411. If the tax payer tracks you down, then there is nothing you can do but accept them as a new client.

It's not just tax administration that tax professionals have to deal with. They have to contend with more and more statutory reporting requirements from other bodies such as the Prosecutor, money laundering department, Customs, and many other public agencies regarding company law offences, to illustrate just a few regulatory bodies. The whole compliance environment is becoming more difficult for the practitioner and this is not being made easier by duplication of requirements from the various public bodies. However, we are working with other agencies to try and streamline matters where possible.

Individuals running businesses can opt for the same method to declare their tax liability. But many did not do so, instead, prefer to "estimate" their earning and report it for tax purposes. Some small business operators also choose to report "estimate income". This is a dangerous move. Among this group of individuals and small businesses are hawkers, coffee shops and food courts operator, generally from the food industry.
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