Professional accounting services are a very useful type of business to take advantage of, mostly because of the many ways in which they can help their clients. Two reasons to utilize professional accounting services are to deal with special tax situations and federal reporting requirements.
Special Tax Situations
One of the most complicated areas of both personal and business finances are taxes. The tax laws are quite complicated in both cases. A professional accounting service can ensure that you avoid any costly fines, fees, and penalties from the IRS by making sure that you pay exactly as much as you need to in taxes.
One example of a tax situation where you will want to consult a professional would be if you happen to win the lottery in a state other than the one you live in. In this situation, the state lottery commission will deduct federal and state taxes before paying you. However, the taxes they will deduct for the state will be based on the tax rate where the lottery was won, not the state the winner resides in.
The problem with this situation is that the state you live in may have higher tax rates or they may not require you to pay state taxes at all. However, you could get into trouble with the state tax commission if you don’t pay them, or you could end up paying your state taxes again unnecessarily. A professional accounting service can help you avoid this issue by looking into the state tax laws for both your state of residence and where you won the lottery to make sure that you do not over or underpay.
Federal Reporting Requirements
Another area where a professional accounting service can help you is by making sure that you comply with federal reporting requirements. For example, even if you do not win a massive jackpot when it comes to gambling in a casino or winning the lottery, you will still need to report minor winnings to the IRS. Failure to do so can come with some rather stiff penalties.
You will also be able to use a professional accounting service to help you determine which of your investments you need to report to the IRS, and how to report it. For example, certain investments do not need to be reported unless they pay dividends or increase in value.
Speak to a professional accounting service like Bildner and Company today in order to make sure that you avoid any problems when it comes to paying your taxes. An accounting service is able to help you comply with federal reporting requirements as well as help you navigate special or uncommon tax situations.Read More