Who should prepare business taxes?
Unless you yourself are a professional accountant or tax preparer, then you should hire a professional tax preparer or accountant to prepare your business taxes.Taxes are complicated and difficult enough for individuals and couples to figure out and then file; taxes are even more complicated and consequential when it comes to businesses.Business taxes are difficult to figure out, whether you have to pay quarterly taxes or not.You should save all of your records and all of your financial information, and hire an accountant or tax preparer to prepare your business taxes for you.
It is important to choose an accountant or tax preparer whom you trust.Find somebody who is recommended by other business owners.Ensure that the accountant is a certified C.P.A. Call the Better Business Bureau and ask them if any complaints or reports have been filed against a particular accountant so that you can ensure that your accountant does not have a history of filing taxes illegally or filing false taxes and tax returns.
Even if you hire somebody to prepare your business taxes, you need to remember that you are legally responsible for whatever is on your tax returns and your tax information that is filed with the federal government and the state government.Even if you are hiring a well known firm to prepare your taxes for your business, you are still responsible for your tax returns and your tax information that is put on file.So after you choose somebody to prepare your taxes for you, whether you choose an individual or whether you choose a firm, it is important that you remember the following key points:
- If you pay somebody to prepare your taxes for you, that person is required to sign your tax return and to fill in the areas of the tax return form that pertain to the tax preparer.The tax preparer has an identifying number that is assigned by the government; the preparer needs to include the identifying number of the tax form.However, even though the tax preparer signs the tax form, you are still legally responsible for the information on that form.
- In addition to the tax preparer signing the tax form, you need to make sure that you receive a copy of the tax return.Keep that return filed so that you can put it in your records and so that if anything happens-such as being audited-you can show the return with the signature of your tax preparer.
- Make sure that you carefully review the tax return before you approve it being filed with the government.Make sure that all of your tax information is correct.Also check to ensure that your name is correct; don't forget to review your Social Security number and your address.Everything needs to be filled in; do not let any spaces be blank.Make sure that you understand everything that is entered on the tax return and that you aren't uncomfortable with anything on your tax return.Review everything before you sign your tax return.
- If the tax return is blank, do not sign it.Do not sign the tax return until everything is filled out and you are comfortable with everything that is in there.Make sure that you sign the tax return in pen, and not in pencil.If you are filing quarterly taxes, sign the tax forms in pen and not in pencil.
- If you want to, you can check the Third Part Authorization Check Box on Form 1040.This check box means that your Paid Preparer is the one who can talk to the IRS about the information on your return and how your return was prepared.Your Paid Preparer can also talk to the IRS about any issues with refunds or any mathematical errors that are on your return.