When companies or individuals shop for tax consultants they are usually trying to do one of the following things: reduce the amount of money they pay in tax, understand the new tax laws and how it affects their businesses or personal finances, preparation of tax returns and planning for future business enterprise with taxation in mind. In doing this, the company or individual needs to understand the advantages of hiring a chartered tax accountant. Also, attention should be given to the flip side of doing so. The focus of this piece is to explore both sides of the coin and equip companies and individuals with the requisite information before splashing the cash.
Filing of Tax Returns at the Speed of Light
In 2007, a report compiled by the IRS held that it takes the average person 24.2 hours to complete their tax returns. The same report holds that it takes companies 52.2 hours to do same. Thus, it would be time-saving to employ an expert who can do the job in less time and with lesser cost. A chartered tax accountant Renton WA would achieve a commendable result in less time because of his understanding of tax regulation and his experience in handling such document.
Drawing the Line Between Tax Evasion and Avoidance
Companies and individuals are constantly looking for ways to reduce cost. Accounting Firms in Renton WA helps companies reduce the amount of tax that would accrue to them. They do this by looking for loopholes in the taxing statutes that can help individuals and companies reduce their tax liability. There is usually a thin line between reducing tax and avoiding tax. While tax reduction is not illegal, tax avoidance leads to bigger issues. With the help of a tax consultant, a company or individual can effectively draw the line and stay on the right side of the law.
Assisting with IRS audits
Tax consultant has been known to help companies in times of audit by the IRS. They do this by helping you organize documents that would be required for the audit. They can also help in making sure that the individual or company is well represented during the audit. However, only a CPA, Enrolled Agent, or Tax Attorney can help in this regard.
Consultants Don’t Come Cheap
The major disadvantage associated with hiring a consultant is the cost of hiring. The average cost of hiring a consultant to do a simple tax return is $100. This figure rises if the client is itemizing and if you need to complete form 1040 and capital gains and losses. The price can rise above this depending on the complexities of the return and the hourly rate of the tax consultant. Consequently, it can save the company a lot of time and energy to consult a tax expert.