Friday, November 25, 2016

Reliable Tax Preparation Atlanta GA

By Dorothy Wallace


It is the responsibility and obligation of every legal resident, business, citizen and company to pay taxes. Whether you earn an income or not is not an issue. What matters most is that you are a registered taxpayer who is resident in the United States. Taxes are paid on salaries, dividends, interest income, capital gains and profits. After calculating your tax bill, you have to pay the tax directly to the IRS. When looking for the best tax preparation Atlanta GA has to offer, there are several factors to consider.

Late payment of taxes usually comes with penalties and fines. To avoid these costs, it is important for taxpayers to calculate their taxes, pay the bill and file their returns within the specified deadlines. The returns and taxes paid must be accurate to avoid an audit.

The tax rates applicable on the different types of incomes differ greatly. For instance, withholding tax on dividends, capital gains and interest income are usually subjected to the lowest rates. On the other hand, business income and employment income are subjected to the highest tax rates.

There are many types of tax benefits for which taxpayers qualify. For instance, individual taxpayers can get a tax deduction when they invest in energy efficient household appliances that have an Energy Star label. Business owners, on the other hand, can get tax deductions on lunches and travels. Tax deductions and credits act as incentives meant to reduce the tax burden of a taxpayer.

Businesses and corporations can get huge tax deductions on most of their expenditure. For instance, business lunches, dinners and travels can be deducted from total income before tax is calculated. Losses and capital investments are also tax deductible. There are some savvy business people who have mastered these rules and have never paid tax as a result.

The rates used to calculate payroll taxes normally depend on the gross income of an employee. The higher the income, the higher the tax rate. This means that people who earn the lowest salaries pay the lowest taxes while those with the biggest incomes pay the highest rate. That said, the tax system is meant to be fair to all taxpayers.

When it comes to tax preparation and filing of returns, fraud can see you spend years in jail. For instance, if you deliberately understate your income, with the aim of paying a lower tax bill, the IRS may charge you with tax evasion. This will see you spend years in jail. Furthermore, you will have to pay the tax you were trying to avoid as well as stiff penalties and fines. These measures are meant to discourage tax evasion.

There are many CPA firms in the city of Atlanta, GA. When looking for the right firm to prepare your taxes, therefore, the most important factor you should consider is experience. The number of years an accountant has been in business can tell you a lot, so you should watch out for the most experienced attorneys. It is important to note that hiring the most qualified CPA to do your taxes can go a long way in reducing your tax bill.




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