Accountancy professionals provide advice and assist in the analysis of tax laws. The Internal Revenue Code governs the particular procedures that individuals and businesses must follow in preparing their taxes, and accountants who specialize in this area can help taxpayers understand the codes and their implications. Tax accountants are also qualified to testify as experts in tax courts, especially during appeals.
Many businesses use accountants to help them prepare their taxes, although it is a specialized field that has many tax-paying professionals. The Internal Revenue Service (IRS) requires that accountants are licensed, have a bachelor’s degree in accounting and be a member of the American Institute of Certified Public Accountants (AICPA).
Tax accountants assist with all aspects of preparing and submitting a tax return, including preparing financial statements, preparing the budget, developing the financial statement and preparing the income tax return. They assist taxpayers in assessing their estimated taxes owed and the accuracy of their return, as well as assisting the taxpayer with the preparation and filing of the return. Tax accountants prepare all of the necessary forms for filing, and they provide assistance on the preparation of tax documents.
A tax accountant must be licensed and have a bachelor’s degree in accounting. He or she must complete an extensive training program that includes classroom instruction and training in the preparation and submission of federal and state income tax returns and in the preparation and filing of federal income tax returns and state income tax returns. Prior to beginning work as a tax professional, a tax accountant must pass an examination administered by the Department of Treasury, and he must complete an exam administered by the Institute of Certified Public Accountants (ICPA).
In the United States, tax preparation is done by a variety of professionals: individuals or companies that handle financial records on behalf of the individual or business owner; accountants who prepare, submit, prepare and submit returns to the IRS; bookkeepers and bookkeeping clerks; employees in accounting departments of corporations; and business owners; and managers; business financial officers; independent of the owner or manager; and management in the finance and insurance sectors; and independent tax preparers of all types of businesses. Taxpayers can request specific accounting firms to perform certain services, such as preparing the annual tax return, preparing and providing tax planning, preparing and filing the returns and preparing tax court testimony.
Most accountants work independently, but some firms also contract with other professionals to conduct audits, prepare and submit tax statements, prepare and submit tax returns, and review returns for taxpayers. Some accountants are also employed by agencies as consultants, investigators and law specialists. While there is no need to hire more than one tax professional for your business, hiring separate accountants for every aspect of your company’s tax affairs can become quite costly.
Tax accountants provide an invaluable service to businesses. Most businesses will not succeed without them, as they play a major role in maintaining financial records and ensuring compliance with tax law. Without a tax professional on their payroll, a business could be subject to penalties and/or increased taxes.
Tax return preparation services are available from a wide variety of tax accountancy firms and private companies. Depending on your business needs, you may choose to work with either one of them or a combination of both. Most accountants offer a wide range of services to meet your individual needs.
Tax preparation companies typically offer bookkeeping, payroll, tax return preparation, federal tax preparation and state tax preparation. They also provide assistance with tax planning, such as setting up a retirement plan, investing for the future, business structure, purchasing a building or starting a business. Some also offer consulting, advice on business transactions and investment opportunities. They may also assist in tax preparation by providing you with your tax attorney, or accountant, if you have one.
Most accountants charge fees based on the amount of services they provide. If you choose to use the services of a firm instead of an individual, you will pay an hourly fee. However, if you choose to use a combination of both, you may be able to save money.