Hiring a local accounting firm that handles Rochester taxes and returns is likely a good idea when you wish to take deductions of a Schedule A or a Schedule C. Not working with a reliable and reputable accounting firm can lead you to get into a lot of trouble with the tax authorities.
When tax time emerges, there will be businesses and individuals that may wish to try and do their own taxes on their own. You might outright get lucky and the federal and local tax authorities might accept what is presented without any question. Of course, there is always the potential they may take a closer look at the tax return(s) and request an audit. This can get quite messy and costly. If you end up with all your deductions (or even some of them) eliminated, your tax bill may end up being increased significantly. In some cases, you may even discover you will be hit with fines and other penalties due to presenting a tax return with improper deductions. In some cases, this might end up being even more troubling because the deductions were completely legitimate. The reason they were dismissed is because the presentation of the deductions on the tax return was not very good and the response to the request by the tax authority was inadequate.
Once you take all these components into consideration, you quickly come to the realization that hiring an established Rochester accounting firm is a much wiser strategy than trying to go it alone. If you are filing a simple Tax Form EZ, you likely can file your own return on your own behalf without much worry or trouble. When you are itemizing deductions for yourself or for a business, you probably can handle such a task on your own. Although, quite honestly, hiring a Rochester accounting firm for these tasks would make the process quicker and easier.
For itemized deductions, working with experts in Rochester taxes would be a much wiser plan. One thing you have to be aware of is the tax authorities look very closely at deductions because this is where many taxpayers like to stretch the truth. This does not mean you, yourself, are stretching the truth in any way. However, enough people filing taxes will do so that the federal and local governments will look closer at the deductions an individual or a business might be claiming. Once you realize this, you also realize why it may be important to hire a professional Rochester accounting firm to handle your tax returns.
The need to work with services for Rochester taxes becomes even more important when your gross income in high. A person earning over $75,000 in gross income or a business earning more than $100,000 will be looked at a lot more closely than persons or business that generate less revenue. This will be doubly true in the case a loss is reported on a business.
The taxing agencies do not automatically audit businesses or individuals merely because of what they earn or because they want to take deductions. However, if the tax return is sloppy, loaded with errors and poorly presented, then the chances increase it will be audited. A professional service is not known to make such gross errors. Rather than find yourself in the unenviable position of being audited, would it not be best to have legitimate pros handle the return?
Whenever a budding entrepreneur comes to us looking to us for help as a Rochester CPA, one of the first questions we have to ask has to do with how he should establish his business. This question is not related to operations and other forms…
RDG+Partners wants to be the primary advisor for motivated business owners. The firm is committed to providing boutique level accounting, tax and business consulting services to the Rochester, NY community.