2019 is officially here, and with it, the 2018 tax season along with its new tax laws and regulations is right on its heels. Every year taxpayers deal with the decision of how to file their tax returns, and while most are done via computer and e-filing of returns, a large chunk of these were done by tax professionals, and there’s a good reason for this!
Filing taxes takes time, often a lot of time. In fact, according to IRS estimates, preparing and filing a return on average takes up to 16 hours when filling out a Form 1040, which is the individual form many of us use. But the more complex your situation, the better off you are hiring a professional, especially if you run your own business, inherit property or buy a home. Your tax preparer can explain your options, especially with how the new tax law changes affect your situation.
If you use a tax preparer to file your returns, you will still be responsible for the information on paper but if the IRS has questions, you could elect to have them contact your preparer rather than you, which can be a big relief. This can be done by giving your tax preparer, such as a CPA, a power of attorney to represent you when dealing with the IRS.
Hiring someone to handle your return is especially helpful when it comes to the 2018 tax year because of all the changes to the tax code enacted by the Tax Cuts and Jobs Act (TCJA) which went into effect on Jan. 1, 2018. For example, itemized deductions are less useful now since standard deductions have increased, state and local property tax deductions are limited to $10k, personal exemptions have been taken away, and the casualty and theft loss deduction has been repealed (unless your loss was in an area that the president declared a disaster).
The new tax laws also streamlined 2017’s 1040, 1040A, and 1040EZ by replacing it with a new Form 1040 for your 2018 tax return, which comes with multiple attachments that can make the form more complicated. A tax preparer can walk you through the form this year so you’ll be more informed moving forward.
When you hire a tax professional, you’ll need to gather and organize your 2018 tax-related documentation, verify the accuracy of the completed return, and keep a copy of the return and documentation for at least three years. Your tax professional can certify the form’s accuracy and work with the IRS should a tax audit ever arise.
Whether you are an individual seeking a tax professional this year because of the changes in the tax code, or you are looking for tax consulting and preparation through a certified CPA and accredited IRS tax accountant for your business, Corporate Capital is pleased to be your go-to. We can offer you access to:
-A certified public accountant
-A quarterly review of your tax liability position and profit and loss, which could help you minimize your tax in the next year
-A review of business expenses to ensure maximum tax deduction and legal minimum in tax payments so that you can grow your wealth
-Federal and state tax return preparation in compliance with taxpayer reporting responsibilities
-A review of previous taxes in case of any tax saving opportunities
-Year-round consulting and research for any tax issue that may be affecting business growth
-Professional advice on tax consequences related to your business’s incorporation process
-Minimal tax liability
-Tax advisory and accounting support with Corporate Capital’s partners in regards to state revenue agency or IRS audits
By using a professional to do your taxes your return will be better, and often your tax refunds will be greater, than when doing it yourself, especially with the new changes in effect. For more information or to take the stress out of your 2018 filing, reach out to our Corporate Capital team at 855-371-0070.