Hello! When I started my own small business, I didn't really give much thought to how I would pay tax. I mean, I realised that I would have to pay tax at some point, I just didn't understand when I would have to pay it or how much I would have to pay. I tried doing some research, but I soon discovered that tax is a very complicated business. One day, I got a letter from the tax office asking me why I had not filed a tax return for the previous year. I panicked and contacted a tax service. The tax service was great. The staff looked at my accounts and calculated exactly how much tax I would need to pay. This blog is all about the benefits of using a tax service.
Every citizen is required to file their annual tax returns on time. If you skip or forget to file, you'll earn a hefty penalty. However, tax returns are complicated and require a lot of attention. Some businesspeople lack time to handle these tax matters due to their busy schedules.
If you are in any of these predicaments, you need the assistance of tax agents. A tax agent handles all your tax issues, enabling you to concentrate on other important matters of your business. As you look for the right agent to hire, you will need to gather a few things for the filing. Below is a list of the things to prepare in advance:
1. Identification Details
Your accountant can only succeed in filing your taxes if your identity details match those on the system. Therefore, you need to provide identification information that the agents will use to file your return. They are going to need your social security number and those of your dependents. Additional identification documents you need to submit include your driving license or military card. So, if you have lost any of these, you will need to apply for a replacement before the due dates.
2. Latest Filed Taxes
Keeping a copy of your previous taxes is important because you might need it during the next filing season. Tax agents may require these documents to extract the necessary information instead of calling you from time to time. This is particularly true when dealing with a new accountant. You should also inform the agent about existing discrepancies so they can help you forge a way out of the situation.
3. All Income Statements
When filing your taxes, you should include all your incomes, even the subsidiary ones. It should also include unemployment or social security income dividends. You must account for all these incomes. Ensure that you present a statement for each of them to your agent for proper filing.
4. Proof of All Expenses
For each expense you incur, there should be proof. Whether you used your money to settle hospital bills or bought an additional machine for the office, your accountant needs to record it in the tax system. Evidently, it means you need a safe place to store your receipts, no matter how small the expense is.
Hiring tax agents can make your work a lot easier and saves you valuable time. Whether you are an employee or an employer, you should consider hiring one.
Share19 March 2021
