Keep track of your tax return!

You may prepare your tax return yourself, use a tax software, take the help of a CPA or a tax professional or may be you outsource it. However, my question is, do you save a copy of your return?

Most of us do not, and that is a very serious mistake. Why would you need to save a copy of your tax return? The chances are,

Ø      You may have to respond to an IRS notice

Ø      You  may want to make changes to the prepared return

Ø      You may be applying for a home loan

Ø      You may want to plan in advance for your tax and finances.

For all the above cited reasons, one may think taxpayers will be careful around their returns. But alas, the situation has only gone from bad to worse these days.

Suppose you have prepared your own return and filed it online – please take care to do at least any of the following:

1. Print a copy of the return
2. Save the file or
3. Scan the return document (if not the source documents)

Some of you might argue saying that you source your returns to a paid preparer, and the preparer will be available to give you a fresh copy if need be. But, in case the preparer experiences a PC crash and loses the files or has quit the business, you will be helpless.

The Federal Tax office can provide you with a copy of the return, but you will have to shell out a few extra dollars and be prepared to wait for a few weeks. IRS Form 4506 is the form to apply for a copy / transcript of your tax return.

It is in fill-in mode, allowing you to enter information while the form is displayed by an Adobe Acrobat 4.0 product and then print the completed form out. Fill-in forms give you a cleaner crisper printout for your records and for faxing. Of course, take due care to print it out and save your copy!

 You can also avail of a tax account transcript / return transcript from the IRS– however, the waiting time involved is sure to dent the original purpose of requiring the return.

Many people do NOT need actual copies of their returns and can instead request a tax return transcript. Transcripts are free, but copies of the return cost $23 each. In addition, transcripts are usually received in two weeks, but copies take four to six weeks.

Hence, please take care to save a copy of your return always, and store it for a minimum period of 5 years from the time of filing. A bit of preparedness always helps!

Along side, maintaining a digital copy of your supporting documents is also a best practice and will come in handy some day.

Choose the right professional for your tax preparation!

Tax laws keep changing every year, and they are so complex that the process of claiming any savings on offer is itself more trouble than its worth. You have decided on hired help for tax filing. The helping hand is required to be professionally trained and accredited, and trust worthy. You are ultimately responsible for your tax return although someone else may have prepared it. You sign on the dotted line on the 1040, and so the responsibility to find an ethical and well-informed preparer lies solely with you. A good tax preparer will provide strategic services with speed, precision with an in-depth knowledge of managing multifarious tax situations.

Here are a few pointers to keep in mind while choosing your tax preparer so that you do not end up with an error-ridden tax return:

1. Check on the IRS certification

Always check out the short listed tax preparer’s qualifications, prior history and professional affiliations. Ensure the preparer has the IRS accredited Preparer Tax Identification Number (PTIN). Check out your state accountancy board, CPA council or your local IRS office to ensure there are no grievances against the person you are planning to hire.

2. Check out the fee charged

Ideally, the service charges should not be a percentage of your supposed refund. This is usually an indicator that tax boundaries will be pushed that much more, and unlawful practices adopted to get you more money than you are legally entitled to just because your preparer can get more out of your return.

Preparers who promise to obtain large refunds are best avoided – any tax return properly prepared will have all preparers come up with essentially similar numbers on tax & refunds.

3. Ensure accessibility of tax preparer

Make sure you hire a preparer who is around even after the tax filing season ends so that you can have help at hand in case of any possible questions from the IRS.

4. Always review your tax return

Read through your prepared tax return thoroughly and attempt to understand the entries made. If you are uncertain about any entry, have it clarified with your preparer. In case a satisfactory answer is not forthcoming, do not approve the return. Any preparer who is unable / unwilling to explain entries made on your 1040 and other schedules is inept and unworthy of hiring.

Surely, checking out the credentials of your tax preparer is time-consuming. However, it is time well used up considering the potential advantages on offer.

Outsource accounting for lesser costs and improved efficiency!

Make this year your most successful yet with GKM’s Universal Accountant.

There has been incredible development in the field of information technology, opening up immense potential for business functionality in a manner only dreamt of before.

In today’s competitive business environment, outsourcing of accounting services is sure to make account handling simpler.

A near perfect blend of fast internet connections and strong security / encryption policies have made the outsourcing of significant functions such as accounting & tax preparation.

To make it better still, outsourcing your accounting work to a virtual accountant is practical and cost-saving. There are businessmen who need the comfort of a full-time accountant, but are unwilling to go through the recruitment hassles or part with the necessary office space or expenses. A virtual accountant / outsourced accounting services is a perfect fit for the above category of businesses.

GKM Universal Accountant can be hired by:

1. Entrepreneurs
2. Small & Medium Business Groups
3. Non-profit organizations

among others.

GKM’s Universal Accounting Department provides your company with expert professional bookkeeping services, presenting an opportunity for your top managers to plan for the future with confidence.

Advantages of hiring GKM’s virtual accounting services:

1. Quality assurance – a ISO 9001:2008 certified company
2. Freedom from varied hassles of recruiting and training accountants
3. Savings on office space & expenses for internal accountants
4. Freed up time to focus on core strategic aspects of business
5. Availability of class services of experienced, dedicated and well trained, tested and specialized team of CPAs and CAs who speak your language.
6. Space to manage your business accounts on a real-time basis with regular updates on latest regulations.
7. Data confidentiality – balanced security architecture at all levels.