Ways to Make Money as a Tax Preparer
What is the Section 179 Deduction?
By Tim Frye
As the years go by, it seems small businesses are getting their pockets squeezed harder than the guy who owes Uncle Pauly $30 large from money lining the Celtics a few years back and not making good on his debt. And with Obama in office, the invasive procedures of the alphabet soup companies like the IRS and EPA have expanded and grown more unrelenting than ever. The government stated clearly that they would leave those taxpayers making under $250,000 alone. For the most part, they have remained true to their word. Now, there of course is always another side to this coin. Those individuals and businesses that are reporting income in excess of this threshold are getting slapped around pretty good. Consequently, as the tax rates for income and investments that land beyond the designation climb higher, the deductions accessible to the affected taxpayer are more valuable than ever. The Section 179 is one of these vital deductions that has been revised recently to assist small businesses. Section 179 of the tax code permits businesses to deduct the entire purchase price of qualifying equipment and/or software purchased during the year. This article will seek to articulate the specifics of the Section 179 deduction.
The Five Most Underrated Tax Breaks
By Tim Frye
When it comes to the IRS and their tactics of taxation, there will be no prisoners taken. They are willingly ready and apt to tax every dime of income, coming in from any avenue, at it's appropriate rate. So this attitude must be reciprocated by the taxpayer if you are to ever save any real money on taxes, over time. It must become a battle between you, the tax preparer, the taxpayer, and the IRS, the taxor. And you must take pride in assisting you client in accessing all of the plethora of deductions available to them. Let us kindly remind you, the battle must a friendly and honest one, or you will draw too much attention to the taxpayer and have a situation where their pockets are battered to a pulp, and profusely at that. The only honest way to attain victory over the IRS is to pay as little tax as possible every year by staying diligent and knowledgeable of all deductions applicable to your client and their income. Missing these deductions, even in the slightest of formats, will leave you with higher taxable income, and subsequently a fatter tax bill. Lets run through a few of the most over-looked and underrated deductions.
What Do I Do if I Get Audited?
By Tim Frye
The IRS audit can cause a copious amount of trepidation to the taxpayer, and also for you as a tax preparer. Many of you preparers who have been in the game long enough have surely seen the IRS turn a life upside down. It is your job to decrease the likelihood of your client being subjected to IRS “Examination.” However, in terms of random audits your accuracy bears no influence on the decreasing of these odds. It will just happen, as there is one type of audit that is just randomly selected by the IRS. So lets take a look at the process involved once your client is due to be audited and has been notified, and discuss ways for your client to get through the examination unscathed and unimpeded financially.
What are the Biggest Tax Preparer Mistakes?
There may be no more worse industry to make a mistake in then the field of tax preparation. The reason for this is you are going to be held responsible for seriously drastic hardships when you cause delays to your client's return, or make a mistake that creates an additional financial strain on the taxpayer. Taxes are already painful enough to pay every year, don't make it more difficult for the taxpayer by compounding their issues. It is so crucial to take your time and be accurate when filing a person's return, because every turn of the page, and every punch of the keyboard, you have the potential to butcher a person's life in half, and subsequently ruin your tax season entirely. Lets evaluate the two biggest mistakes you could make as a tax preparer and help you avoid these potential catastrophic missteps.
Top 4 Deductions without Itemizing
By Tim Frye
As a tax preparer you have to be able to adapt and attach a certain level of elasticity to your client's current situation. The last half decade has been pretty rough on taxpayers, with the real estate bubble burst, the economy tanking, wars continuing for perpetuity, etc. So it goes without saying that tax situations have changed drastically for many people. For example, let's say you have a client who lost their home to a foreclosure, and now pays rent. This is an individual who used to employ the long form due to the large sum deduction they received for mortage interest to boost them over their standard deduction hump. With that no longer in existence, this client is now reduced to using the short form, and loses many of the deduction options that were previously available to them. So in these situations it is still vital for you to try and get them as many deductions as you can, even when they are not utilizing the Schedule A. Lets take a look at the top four deductions that you can access for your client without them itemizing.