The Small Business Tax Help Blog

Posts Tagged ‘consulting’

An enrolled agent is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.

But the more important question is not what an enrolled agent is, but rather what an enrolled agent can do for you. It’s very obvious that most people get anxious when someone even mentions tax preparation, so I want to get straight to the point.

Who They Serve

Enrolled agents serve as advisors and representatives to a variety of people or establishments filing taxes, including sole proprietorships, corporations, non-profit organizations, or any legal business entity, including international businesses, non-resident aliens, resident aliens and new immigrants.

They can prepare tax returns for an array of filers such as individuals, partnerships, corporations, estates and trusts. Because the taxation process changes every year, they must continually be trained on new strategies and procedures. Simultaneously, they are required by the IRS to have 72 hours of professional education every three years to retain their status as an enrolled agent.

What They can Offer

Tax preparations are not the only element that enrolled agents may be able to help you with. They can also help with IRS audit responses, collection matters, levies, liens and other IRS procedures.

We’re talking about trust, convenience and credibility. For some, it would be like we are handing our yearly migraine off to someone else to handle and it’s worth the price we pay for it. However, this process has also turned out to be quite a double edged sword with the potential omission of very important information. At that point it becomes a “blame-game” and things could get real ugly, real fast.

Trust and Insurance

It’s not that having an enrolled agent will solve all of the taxation problems and headaches you may have, but they are held to a higher standard than those who may be internally trained by companies or individuals that have no affiliation with the government. It’s can be a much more comforting feeling knowing that there is accountability between the US Department of the Treasury and enrolled agents.

However, even with the safeguards that Enrolled Agent Agencies and the government can set up, it is still a good idea to protect themselves as tax preparers from slip-ups that occur. Enrolled agents and agencies are able to protect themselves from litigation by purchasing professional insurance policies that protect them from accidental tax preparation errors.

TaxACT 2009 Raises the Bar Higher on Free and Affordable Tax Preparation Solutions

CEDAR RAPIDS, IA–(Marketwire – 01/07/10) – Given the number of tax law changes and a still-recovering economy, a quality and affordable tax preparation solution is more valuable than ever. TaxACT has answered the call with a wide range of new features and enhancements for 2009 products. 2nd Story Software released final versions of TaxACT 2009 federal and state products today. Preview versions …

Tax Audit

Business : Fraud Continues To Be Serious Threat Within Corporate Malaysia

KUALA LUMPUR, Jan 11 (Bernama) — Fraud continues to be a serious threat within corporate Malaysia, with 49 per cent of Malaysian companies surveyed, experiencing at least one incidence of it.

Internet Marketing Business Models

Question: How anyone broken down how much we pay in taxes in exchange for what we receive from out tax dollars?

Would it be cheaper to hire independent contractors to work and pay them with our tax money ourselves. I’m just surious how much of our money ends up at cocktail hour of our tax paid representatives.
Thanks STAN who wrote:
Good Question! another way to ask it is “Are we getting our Money’s worth?” The answer is definitely NO!

Answer: Good Question! another way to ask it is "Are we getting our Money's worth?" The answer is definitely NO!

Contractors' Questions: Can I duck the NI rise?

Contractor’s Question : I am self-employed and only earn about £25,000 a year. What do the newly announced national insurance rates and thresholds mean? Should I put another £5,000 into a pension to reduce earnings and therefore my NI liability?

6/8/09: White House Press Briefing

Question: Subcontractor to start taking out taxes?

I am working for as a subcontractor, however, I am now required to fill out a w4 form. So this means that I will now become a regular employee right? Since they will take out taxes, am I entitled to overtime? vacation? and all the rights as a regular employee? Any advice will do. Thank you.
As of right now, I’m salary.

Answer: If they are having you fill out a W-4, it sounds like you will be an employee. Yes, you are entitled by law to overtime pay as an employee. Vacation is a BENEFIT, not a right, so you aren't entitled to that unless the company gives it to you.

MINORITY CONTRACTING OPPORTUNITIES

CITY OF SAN DIEGO Park and Recreation Department REQUEST FOR PROPOSAL FOR As-Needed Assessment Engineering and Special District Administration Services (H105023) The City of San Diego (City) is requesting proposals from highly qualified assessment engineering and special district administration firms for consultant services for As-Needed Assessment Engineering and Special District Administration ...

Question: S corporation vs LLC company .. HELP?

what does this mean?? ‘A single-member LLC that doesn’t operate an active trade or business doesn’t have to pay self-employment tax and so would not save self-employment taxes by electing S corporation status.’
What do you mean by if income is passive? how does that make a difference?
we have a business. would it be better to create an S corporation so, we can save on employment tax? I was just wondering what does it mean by having an active trade or business..

Answer: All income that is from an active trade or business is subject to self-employment tax if it is earned in an LLC. If it is earned in an S corp, it is not subject to social security unless paid out as wages.
Income that is passive (interest, dividends, etc.) earned in an LLC is not subject to self-employment tax. Same for an S Corp. What you are reading says there is no advantage of S Corp taxation over LLC taxation if all the income is passive.

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Among the stories you'll find in Business Today :

- Construction begins on second of 3 hotels across from airport - Jonathan D. Epstein/Buffalo News Construction is under way on the second of three planned hotels on the site of the former Radisson Inn across from the Buffalo Niagara International Airport , as Benderson Development Co.