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At CPA Miami, we also provide auditing services. Our auditing services include:
• Audits of financial statements of a non-public Companies;
• Audits of financial statements of condominium associations or homeowner associations;
• Performing financial analysis, document assembly and assistance for other auditors to significantly reduce audit fees;
• Outsourced internal audit functions of compliance and operational efficiencies;
• Analysis and review of operational controls;
• Fraud examinations;
• Performing agreed upon procedures for third party lenders in the assessment of loan risk and review of compliance with loan covenants;
• Performing audits of lessees pursuant to percentage rent contract provisions
• Representing taxpayers in IRS Audits or Examinations
Frequently Asked Questions Regarding Financial Audits:
• What is a financial audit?
A financial audit, or more accurately, an audit of financial statements, is the review of the financial statement analysisof a company or any other legal entity, resulting in the publication of an independent opinion on whether or not those financial statements are relevant, accurate, complete, and fairly presented.
• What is the purpose of an audit?
The financial audit is one of many assurance or attestation functions provided by accounting and auditing firms, whereby the firm provides an independent opinion on published information.
The audit is designed to reduce the possibility that a material misstatement is not detected by audit procedures. A misstatement is defined as false or missing information, whether caused by fraud (including deliberate misstatement) or error.
In the US, the CPA firm provides written assurance that financial reports are fairly presented in conformity with generally accepted accounting principles (GAAP).
• Why is an audit performed?
Financial auditexist to add credibility to the implied assertion by an organization’s management that its financial statements fairly represent the organization’s position and performance to the firms’ stakeholders (interested parties).
• Who performs an audit?
Financial audits are typically performed by firms of practicing accountants due to the specialist financial reporting knowledge they require.
• Who uses audit information?
The principal stakeholders of a company are typically its shareholders, but other parties such as tax authorities, banks, regulators, suppliers, customers and employees may also have an interest in ensuring that the financial statements are accurate.
• When is an audit required?
Audits may be required by regulation or stipulation with agreements of the organization. For example, lenders may require an audit of the financial statements of an organization to help provide assurance as to the assertions of an organization in compliance with loan agreements.
Other organizations may be required to have the financial statements audited in accordance with regulatory provisions. For example, condominium associations may be required to have the financial statements audited pursuant to regulations to help provide oversight control to homeowners.
• How much does an audit cost?
This is difficult to say because all organizations requiring an audit are quite different. Factors of consideration are how extensive the audit must be, who are the ultimate users of the audited financial statements, whether an audit has been previously performed and by whom, etc.
• How do you get started?
To begin an audit, you will first need to talk with us to make a determination of whether an audit is most applicable or some other financial procedures are needed. Once the determination of which procedures are best is determined, the next step is to review if we have the expertise and availability to help you and that you available have the records and documentation in performing the audit and a projection of the audit fees associated with your audit engagement. The initial consultation in performing these basic procedures is provided at no cost or obligation. Call today!

Click here for State and local tax

Popularity: unranked [?]

Most individuals try to arrange matters so that they won’t have to pay any additional taxes when they file their income tax returns. However, things don’t always work out as planned and it’s possible to find not only that there is tax to pay at filing time but also that there is insufficient cash to pay. Fortunately, in recent years, the Internal revenue service has made it easier to pay delinquent taxes in monthly installments.

To do this you complete IRS Form 9465, Installment Payment Agreement, and attach it to your return. You may file electronically. But in any event you have to supply information such as the name of your bank and the amount and date of the proposed monthly payment. You will not need a financial statement for amounts under $10,000. If the IRS REPRESENTATION approves the request, there will be a $43 fee. The decision usually comes within thirty days.

In an effort to enhance taxpayer compliance, the 1998 IRS Restructuring and Reform Act requires the IRS to enter into an installment payment agreement if the tax liability is no greater than $10,000. The only requirements to take advantage of this “automatic” right to an installment agreement are that (1) over the previous five tax years you have not failed to file a tax return, pay income tax, or have already entered into another installment agreement, and (2) the IRS determines that you are unable to pay the liability in full when due.

When you enter into an installment agreement you must agree to make the monthly payments on time. You also must agree to meet all future tax liabilities. As a result you should arrange for your withholding from salary or wages and payments of estimated tax to be sufficient to ensure that taxes will be paid in full when a future year return is timely filed.

The IRS can terminate an agreement if you don’t timely pay an installment (and for other reasons). But it will give you thirty days to respond to its intention to terminate and an agreement that is terminated can be reinstated. There is a $24 fee for restructuring or reinstating an installment agreement.

It’s important to be aware that even if an installment payment request is granted by the IRS, interest and a reduced late irs penalty of .25% per month applies to any balance due. Therefore, to minimize interest and penalty charges, you should timely file the return and pay as much tax as possible with the return before making an installment payment request.

Once you take into account these interest and penalty charges, it may be less costly to borrow funds from an alternative source and use them to pay your tax rather than asking the IRS to allow installment payments. Please contact us if you would like more information or if we can help you figure out an installment payment arrangement that is best for you.

Accounting information systems

Popularity: unranked [?]

How a retiring partner does is taxed when he or she receives payment for his or her interest from the partnership. In general, a retiring partner who receives a series of liquidating distributions does not recognize gain until the entire basis in the partnership interest is recovered. Similarly, a loss on a series of liquidating distributions is not recognized until the year in which the retiring partner receives the final liquidating payment.
A special choice is available, however, when a retiring partner is to receive a fixed amount of liquidating payments over a period of years. In such a case, the retiring partner may elect to report gain or loss ratably as each liquidating distribution is received. If the election is made, a proportionate share of the partner’s basis in the partner’s partnership interest is applied against each liquidating payment. The example that follows shows how a retiring partner is taxed both when the election is not made and when it is made. Click here for Accounting services.
Example. Jones retires from the ABC partnership. He is to receive a total of $300,000 from the
partnership over three years ($90,000 in 1999, $150,000 in 2000 and $60,000 in 2001) in exchange for his interest in partnership property. His basis in his partnership interest is $180,000. Thus, 60 percent of the total ($180,000 divided by $300,000) is a return of basis and 40 percent of the total is capital gain. (Any substantially appreciated inventory would be subject to tax as ordinary income.)
Result. If he does not make the election, he would not recognize any gain in 1999. He would recognize a $60,000 capital gain in 2000 and a $60,000 capital gain in 2001. If he makes the election, he would recognize a capital gain of $36,000 in 1999 (40% of $90,000), $60,000 in 2000 (40% of $150,000), and $24,000 in 2001 (40% of $60,000).
As a general rule, you would not make the election and instead defer recognition of gain as long as possible. By deferring, you achieve what amounts to an interest-free loan from the government in the amount of the deferred tax. However, there are instances when it would be better to accelerate your gain. For example, if you have already realized a loss from another transaction, you might want to make the election so that you could currently make use of the loss to offset the gain.
Also, the normal deferral approach could cause a greater loss as tax breaks are reduced as adjusted gross income reaches a higher level. The election could spread out gain so as to minimize loss of these tax breaks.
What if you are being bought out at a loss? In that case, you may want to make the election to accelerate recognition of your loss so that you can more quickly use it to offset gains from other transactions.
Click here for Auditing Services

Popularity: unranked [?]

Planning to get the most out of any new business venture begins with making sure you get the greatest possible tax advantages for your investigation costs, start-up expenses, and other organization costs.

These include costs such as advertising, salaries and wages of employees-in-training, travel and other expenses of lining up customers, suppliers, and distributors, and fees paid for<a href=”http://www.cpamiami.com/”> consultants services</a> and professional services.

You may assume that all of these start-up expenses are deductible as business expenses in the year you pay them, but that is not the case. Such expenses are not considered to be business expenses because they are not incurred in a going business. Instead they must be capitalized unless you make a proper election to amortize them ratably over a period of no less than 60 months once the business starts to operate. The costs of organizing a corporation can also be amortized over 60 months, if the corporation properly elects to do so.

Another complication with start-up expenses is that they are amortizable only by the person who incurs them. If your new business is going to be a sole proprietorship, that won’t be a problem. However, if the venture is to be a corporation, you can’t personally deduct the costs you incur before incorporation. Those costs are part of your investment in the corporation’s stock; you may want to contribute the funds to the corporation and let the corporation incur the expenses so that it can amortize them.

It’s also important to know that some expenses are treated more favorably than the regular start-up costs we have been talking about, and some less favorably. Start-up expenses for interest, taxes, and research costs usually can be deducted in the year paid. The cost of tangible property purchased for use in the business can be recovered by way of accelerated depreciation deductions over various periods, depending upon the type of asset, but generally faster than start-up costs. On the other hand, the costs of buying intangible assets for use in your business, such as customer lists or the goodwill of a purchased business, have to be written off over 15 years.

You want to be sure that you get whatever tax benefit you can from all of these expenses. To do so, you need to coordinate the expenses with the business’s starting date, and properly make the necessary elections. If you are expanding an existing business, rather than starting a new one, you may be able to deduct the expansion costs currently. We would be glad to help you explore these possibilities further to be sure that you avoid any costly pitfalls. Please do not hesitate to call our offices if you need any assistance for <a href=”http://cpamiami.com/accounting-services/”> tax accounting services</a> when planning your business start-up.

Public Accountancy

Popularity: unranked [?]

Planning to get the most out of any new business venture begins with making sure you get the greatest possible tax advantages for your investigation costs, start-up expenses, and other organization costs. These include costs such as advertising, salaries and wages of employees-in-training, travel and other expenses of lining up customers, suppliers, and distributors, and fees paid for consultants services and professional services.

You may assume that all of these start-up expenses are deductible as business expenses in the year you pay them, but that is not the case. Such expenses are not considered to be business expenses because they are not incurred in a going business. Instead they must be capitalized unless you make a proper election to amortize them ratably over a period of no less than 60 months once the business starts to operate. The costs of organizing a corporation can also be amortized over 60 months, if the corporation properly elects to do so.

Another complication with start-up expenses is that they are amortizable only by the person who incurs them. If your new business is going to be a sole proprietorship, that won’t be a problem. However, if the venture is to be a corporation, you can’t personally deduct the costs you incur before incorporation. Those costs are part of your investment in the corporation’s stock; you may want to contribute the funds to the corporation and let the corporation incur the expenses so that it can amortize them.

It’s also important to know that some expenses are treated more favorably than the regular start-up costs we have been talking about, and some less favorably. Start-up expenses for interest, taxes, and research costs usually can be deducted in the year paid. The cost of tangible property purchased for use in the business can be recovered by way of accelerated depreciation deductions over various periods, depending upon the type of asset, but generally faster than start-up costs. On the other hand, the costs of buying intangible assets for use in your business, such as customer lists or the goodwill of a purchased business, have to be written off over 15 years.

You want to be sure that you get whatever tax benefit you can from all of these expenses. To do so, you need to coordinate the expenses with the business’s starting date, and properly make the necessary elections. If you are expanding an existing business, rather than starting a new one, you may be able to deduct the expansion costs currently. We would be glad to help you explore these possibilities further to be sure that you avoid any costly pitfalls. Please do not hesitate to call our offices if you need any assistance for tax accounting services when planning your business start-up.

Click here for Accounting Firm

Popularity: unranked [?]

Buying or leasing an auto for the use of your employees ought to be an uncomplicated transaction from the tax viewpoint, but it’s not. The plain fact is that the company auto creates more tax complications than almost any other type of business asset. That’s why it’s imperative for you to formulate an overall strategy with our experts, one that yields the maximum in tax savings, while keeping your paperwork and administrative burden at a minimum. This strategy will take into account the special rules that apply to your deductions for the company auto, the tax consequences of an employee’s personal use of a company auto, and the payroll implications of such personal usage.

As a general rule, your company can claim depreciation deductions for the full cost of a purchased company auto, or fully deduct its lease cost if it rents the car, as long as the value of the employee’s personal use of the car is treated as fringe benefit compensation income. However, there are extra complications if the car is what the tax law considers to be a luxury auto. For cars bought or leases commencing in 2002, for example, this means a car valued at approximately $15,300. Depreciation deductions are artificially low for purchased company autos that fall in the “luxury” class, which means it will take longer to recover your cost. And if your company leases a “luxury” company auto, it will wind up with a special add-back to income (called the lease inclusion amount) that varies with the value of the car and the year of the lease.

The employee’s personal use of the company auto creates a separate category of tax accounting services . That’s because the value of the employee’s personal mileage must be treated as noncash fringe benefit income that is taxable to the employee, but not deductible by the company (its deductions consist of depreciation or lease deductions and operating costs). There are four separate ways to value employee personal mileage, and each of them carries its own rules and conditions. Three of the four methods require detailed record keeping of business and personal usage.

The fringe benefit value of personal use of the company auto generally is subject to federal income tax withholding and FICA tax. However, your company can elect not to withhold federal income tax if it properly notifies affected employees of this choice. In addition, your company can choose to treat the company car as having been used entirely for personal travel. This option will greatly simplify the company’s record keeping burden, but usually will create extra taxable income for your employees.

Although the rules for company autos are complex, we can show you how to minimize their impact on your bottom line, on your payroll department, and on your employees. Please do not hesitate to call at your convenience for an appointment for accounting & bookkeeping services.

Certified public accountant

Popularity: unranked [?]

Before you start a new business, there are a number of preliminary decisions to be made. One of the first choices you will face is the legal form in which you will operate the business. Should it be an unincorporated sole proprietorship, a partnership, a limited liability company, a regular corporation, or an S corporation? Each of these forms has both tax and non-tax advantages and disadvantages that must be weighed in conjunction with your own plans and personal situation.
Sole proprietorships, for example, are the easiest and cheapest business form to set up, and they can be operated with few formalities. However, they offer no personal liability protection and don’t allow you to get many of the tax benefits that are available to corporate employees.
Partnerships offer many of the same advantages and disadvantages as the sole proprietorship, but they allow the business to be owned and run by more than one person. Also, the liability problem can be overcome to a certain extent by forming a limited partnership, but partners whose liability is limited cannot be involved in actively managing the business. And losses from these partnerships may be restricted by the so-called passive activity rules.

A newer form of entity, known as the limited liability company, which is approved for use in almost every state, offers what many see as the best alternative for the typical small business. These entities can be set up to be taxed as partnerships, avoiding the corporate income tax, while the managing members ‘personal assets remain fully protected from business creditors.

S corporations also offer liability protection, without a separate corporate tax. Like partners and sole proprietors, however, more-than 2% S corporation shareholders are ineligible for tax-favored fringe benefits. Another potential drawback of S corporations results from limitations on the number and kind of permissible shareholders. These restrictions can limit an S corporation’s growth potential and access to capital in some businesses. In others, however, an S corporation can be a key ingredient toward success.

What about regular corporations, known as C corporations? They do not have the shareholder restrictions that apply to S corporations, but they are subject to a double system of taxation. That is, their profits are subject to income tax at the corporate level, and are also taxed to the shareholders if distributed as dividends. But if profits are to be plowed back into the business to foster the company’s growth, the tax price is usually lower than with an S corporation. And there are many situations in which the double tax can be substantially minimized. An advantage to this form of operation is that shareholder-employees are entitled to tax-advantaged corporate-type fringe benefits, such as medical coverage, disability insurance and group-term life.

Besides the question of choosing a form of entity or accounting firm for your new business, there are many other tax decisions to be made, and much planning to ensure that you meet your income and payroll tax reporting and compliance chores properly. How will you handle your start-up costs? Will your workers be employees or independent contractors? Can you qualify for a home office deduction? Should you set up a qualified retirement plan, and, if so, what kind?

Please do not hesitate to call to set up an appointment for consultants services to explore these important matters further. With our experience, we can help you come to the right decisions and implement them quickly so that you can concentrate on the success of your new venture.

audit accountant

Popularity: unranked [?]

Learning to pick the right accountant for your needs, especially in Miami, can be difficult. Learn how to pick a miami accountant or miami accounting firm to fit your needs.

There are a number of individuals and businesses who use the services of an accountant year round. There are other individuals who only hire an accountant to help get all of their finances in order before their tax returns are due. View any directory of accountants in any major metropolitan area and you will find hundreds, if not thousands, of accountants listed.

Surprisingly, most business owners and individuals don’t carefully consider matching their needs to an accountant’s qualifications when making a selection. That’s because many of us who don’t have a strong accounting background view all accountants as being equal.

But the reality is that all accountants are not created equal….and the same goes for a Certified Public Accounting as well.

An accountant, technically speaking, is a professional who takes care of the accounting needs of an individual or a business, including bookkeeping, tax preparation, financial advice, and more. Choosing an accountant is a highly individual process, as everyone has different needs.

This article explains how Florida Cpa can help you conquer business finances and provide useful questions you should use to choose an accountant those best matches your needs and can help you prosper — and not somebody who just crunches the numbers.

What do accountants do anyway? How can an accountant help me?

Skilled accountants are highly trained and specialized to recognize data interrelationships and identify trends, amounts, and other relationships that just “look” incorrect. This analysis also includes the clear absence of missing information and the ability to recognize cost or tax savings measures that may have been otherwise overlooked or misinterpreted.

Experienced accountants have also been trained to methodically choose and apply selective analysis to financial data with an acute attention to detail.

Some small businesses make due with a bookkeeper – someone to perform the tedious task of recording financial information and cranking that data into the necessary formats, like P&L; statements and tax forms. But a good small business accountant does much more than just record transactions and passively generate documents – they actively analyze, interpret and convert that data into actionable business intelligence.

How do I choose an accountant that best matches your needs?

Perhaps the most fundamental consideration in choosing an accountant, or accounting firm, is to choose one that best suits the needs of the individual business.

When hiring an accountant, you’re choosing an individual or group that provides you with the requisite expertise that you do not hold. Therefore, your accountant should be adequately experienced and educated in the areas that are most applicable to your needs.

It’s not so uncommon that some people who offer “accounting services” are unqualified. They are unlikely to carry any liability insurance, nor is there any supervisory body you can complain to if things go wrong. The apparent savings in fees, if any, could prove costly.

Accountants who are certified are subject to wide variety of knowledge, experience and ethics requirements, unparalleled by most any other regulated industry. Certified accountants are required to have attended and successfully completed rigorous, higher-level education and/or experience requirements in addition to passing an examination indicating the same. Certified accountants are required to complete certain continuing professional education requirements on an ongoing basis. The purpose of this standard is to help ensure the accountant remains knowledgeable with changing laws, regulations, interpretations and technological advancements.

Experience considerations are of the utmost importance. Accountants practicing “public” accounting have the largest breadth of exposure to various industries, businesses, and persons with unique needs. Public accountants are acutely trained to be able to gather, sort and interpret large volumes of information in very short time periods. Choosing an accountant with prior industry or project experience, can help you save time, money or even the avoidance of costly mistakes. Choose an accountant that has demonstrated an advanced knowledge of specific areas that may be applicable to you.

Step by Step Questions When Choosing an Accountant

1.Determine what your specific needs are. Do you need an accountant for your business or for your personal finances? Do you need to create a budget, need help with financial planning, need financial records kept, or do you just want someone who will prepare your taxes? Accountants and accounting firms often have specialties, and they all have their own strengths, so make sure you know what you are looking for.

2.Get personal recommendations. If you have a friend or a relative who loves her accountant, ask her about it! It is best to find someone who is in a position similar to yours (who is happy with her accountant).

3.Speak personally with the accountants. After you have recommendations, speak with the accountant or accountants that interest you. Explain what you are looking for and ask any questions that you might have. Watch and listen for clear, direct answers and make sure you feel comfortable with the accountant. Feel free to ask about credentials and experience – most accountants will be happy to provide that information.

4.Determine how much it will cost. As with many professional services, cheapest is not necessarily best when it comes to accountants! On the other hand, you don’t want to be overcharged. Do a little comparative shopping to make sure that the fees seem to be within an acceptable range.

5. Consider your feelings. It may sound silly to involve feelings in a business or financial decision, but if you are working with someone, especially someone who will be working with your money, you want to feel secure and comfortable. If you are uncomfortable with the accountant for any reason, choose a different one.

6. Get a timeline. Make sure you talk to the prospective accountant about when you need things done. If you are on a tight deadline for tax season, make sure that he or she can meet that deadline. You need to make sure that the accountant you choose can give you the time that you need!

Does Your Accountants Proximity to Your Business Really Matter? Why Choose a Miami Accountant?

As the accountants’ relationship with clients often requires a continuous, ongoing exchange, it is important to choose an accountant that is easily accessible. However, due to recent technological advancements of communications, desktop sharing and remote access, accountants can more easily exchange information that previously required a physical presence that is no longer applicable.

Miami is a city that provides a wide variety of interests and cultural backgrounds. The majority of its residents are fluent in more than one language. It is probably the best known gateway in the United States to Latin America and South American businesses, European nationals and foreign investors doing business in the United States.

Accordingly, the business acumen of Miami accountants is to generally hold a higher level of knowledge and experience with respect to foreign businesses wanting to have a U.S. presence, foreign real estate and business investors.

Applicable knowledge and skills of a miami accounting firm will often include more complex taxation reporting requirements, currency translation, business capitalization techniques, choosing entity structures most beneficial to foreign owners, and more complex tax reporting as it relates to foreign investors and owners.

Given the current and ever changing state of technological advancements, ability to communicate fluently in foreign languages, improved knowledge and expertise of accountants of tax matters as it relates to foreign ownership, the demand for certified accountants in cities such as Miami is on the rise.

CPA certified

Popularity: unranked [?]

Tax Planning
Let’s face it — no one likes paying taxes. The key is how best to do this correctly and legally. It’s not a matter of not getting caught! Its a matter of having the requisite knowledge to know what strategies are available and how to best take advantage of these opportunities!
The goal of tax planning is to help you arrange your financial affairs so as to minimize or avoid taxes. For small business owners, tax planning must generally be applied at both the individual and business level to minimize your income taxes and maximize your tax savings.
There are three basic ways to reduce your taxes. You can reduce your income, increase your tax deductions, and take advantage of tax credits or other economic incentives available to you.
Reducing Taxable Income
Reducing taxable income can be best categorized into permanent and timing differences. Permanent differences are when income is reduced and never subject to income taxes. Timing differences are when the taxes paid are deferred or delayed to a later period.
For individuals, the most common method of reducing taxable income is to increase Individual Retirement Account (IRA) or pension contributions. For businesses, the more common methods of reducing taxable income is to increase or escalate spending.
Increasing your Tax Deductions
Numerous economic incentives to stimulate specific economic spending are provided through income tax deductions. These deductions have the effect of reducing your taxable income. For individuals, the most common tax deductions include the payment of mortgage interest, real estate taxes, charitable contributions, etc. For businesses, the most common tax deductions include spending, capital improvements, etc.
Tax Credits
Tax credits are specific economic incentives to provide tax relief to targeted business and individuals. Tax credits are generally permanent reductions of income taxes. For individuals, the most common credits currently available include credits for families with children, education, adoption and certain home improvements. For small businesses, the most common credits include specific spending for capital improvements, employment, etc.
What Can You Do?
The key to develop successful tax plans is to either meet regularly with your tax advisor, or at a minimum, meet with your tax advisor before year-end to consider and implement recommended tax planning strategies.
Tax Projections and Year-End Tax Planning Strategies
Tax projections are probably the most common tool used by tax planners in projecting taxable income using historical data, projected income and expenses. The purpose of tax projections are:
• to determine the necessary cash outlays required before year-end;
• to avoid underpayment penalties;
• to project future cash outlays required to meet tax obligations;
• to compare and contrast various tax savings alternatives;
• to compare and contrast various tax deferral alternatives;
• to consider the impact of pending tax legislation
Most tax projections and planning analyses can be prepared for a fraction of your tax savings and can often save you thousands!

accounting & bookkeeping

Popularity: unranked [?]

Tax Planning
Let’s face it — no one likes paying taxes. The key is how best to do this correctly and legally. It’s not a matter of not getting caught! Its a matter of having the requisite knowledge to know what strategies are available and how to best take advantage of these opportunities!
The goal of tax planning is to help you arrange your financial affairs so as to minimize or avoid taxes. For small business owners, tax planning must generally be applied at both the individual and business level to minimize your income taxes and maximize your tax savings.
There are three basic ways to reduce your taxes. You can reduce your income, increase your tax deductions, and take advantage of tax credits or other economic incentives available to you.
Reducing Taxable Income
Reducing taxable income can be best categorized into permanent and timing differences. Permanent differences are when income is reduced and never subject to income taxes. Timing differences are when the taxes paid are deferred or delayed to a later period.
For individuals, the most common method of reducing taxable income is to increase Individual Retirement Account (IRA) or pension contributions. For businesses, the more common methods of reducing taxable income is to increase or escalate spending.
Increasing your Tax Deductions
Numerous economic incentives to stimulate specific economic spending are provided through income tax deductions. These deductions have the effect of reducing your taxable income. For individuals, the most common tax deductions include the payment of mortgage interest, real estate taxes, charitable contributions, etc. For businesses, the most common tax deductions include spending, capital improvements, etc.
Tax Credits
Tax credits are specific economic incentives to provide tax relief to targeted business and individuals. Tax credits are generally permanent reductions of income taxes. For individuals, the most common credits currently available include credits for families with children, education, adoption and certain home improvements. For small businesses, the most common credits include specific spending for capital improvements, employment, etc.
What Can You Do?
The key to develop successful tax plans is to either meet regularly with your tax advisor, or at a minimum, meet with your tax advisor before year-end to consider and implement recommended tax planning strategies.
Tax Projections and Year-End Tax Planning Strategies
Tax projections are probably the most common tool used by tax planners in projecting taxable income using historical data, projected income and expenses. The purpose of tax projections are:
• to determine the necessary cash outlays required before year-end;
• to avoid underpayment penalties;
• to project future cash outlays required to meet tax obligations;
• to compare and contrast various tax savings alternatives;
• to compare and contrast various tax deferral alternatives;
• to consider the impact of pending tax legislation
Most tax projections and planning analyses can be prepared for a fraction of your tax savings and can often save you thousands!

accounting & bookkeeping

Popularity: unranked [?]

Many married taxpayers choose to file a joint tax return because of certain benefits this filing status allows that generally reduce the income taxes you are required to pay. When you file a joint return, the law generally makes both you and your spouse responsible for the entire tax liability even if you later divorce or separate. However, in certain circumstances it is unfair that the obligations of one spouse be applied to another. Accordingly, certain relief provisions are available to married, divorced or separated taxpayers that qualify.
• Are you the “victim”?
• Did you file your taxes jointly with your spouse?
• Were you denied your tax refund?
• Are you being asked to pay your spouse or former spouse’s obligations?
• Is it unfair for you to be held liable for these obligations?
Injured Spouse Relief
If you filed a joint return and all or part of your share of the overpayment was, or is expected to be, applied against your spouse’s past-due debts, you may be able to obtain relief when:

1. You have made, or reported tax payments, claimed a refundable tax credit or
2. You are not legally obligated to pay the past-due amount

Other Relief Provisions
In some cases, a spouse will be relieved of the tax, interest, and penalties on a joint tax return. Three types of relief are available.
1. Innocent spouse relief.
2. Separation of liability.
3. Equitable relief.

Innocent Spouse Relief
By requesting innocent spouse relief, you can be relieved of responsibility for paying tax, interest, and penalties if your spouse (or former spouse) improperly reported items or omitted items on your tax return. Generally, the tax, interest, and penalties that qualify for relief can only be collected from your spouse or former spouse.

You must meet all of the following conditions to qualify for innocent spouse relief.
1. You filed a joint tax return;
2. There is an understated tax on the return that is due to erroneous items of your spouse (or former spouse;
3. You can show that when you signed the joint return you did not know, and had no reason to know, that the understated tax existed;
4. Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understated tax

Separation of liability
Under this type of relief, the understated tax (plus interest and penalties) on your joint return is allocated between you and your spouse (or former spouse). The understated tax allocated to you is generally the amount you are responsible for. This type of relief is available only for unpaid liabilities resulting from the understated tax (refunds are not allowed). The relief discussed here does not apply to any part of the understated tax due to your spouse’s erroneous items of which you had actual knowledge except where you were the victim of spousal abuse or domestic violence.

Equitable Relief
If you do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law, you may still be relieved of responsibility for tax, interest, and penalties through equitable relief.

You may qualify for equitable relief if you meet all of the following general conditions.
1. You are not eligible for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law;
2. You have an understated tax or an underpaid tax;
3. You have not paid the tax;
4. Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understated or underpaid tax;
5. You did not transfer assets to one another as a part of a fraudulent scheme, or to avoid tax or payment of taxes

How Can We Help You?
Meet or talk with us to see if you qualify. If you qualify, we can help guide you through the process, represent your before the IRS and prepare the paperwork fairly quickly and easily.

Certified public accounting

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