Tax Preparer Services and Tax Preparation Procedures

Tax preparation is the procedure of preparing tax documents, most often income tax documents, for a non-residentian taxpayer, usually the individual filing the return, and usually for self-employment compensation. Tax preparation can also be done by the individual without the aid of tax preparation services and/or software. In such cases, most taxpayers would simply use the IRS forms available on the IRS website to prepare their return. Do you want to learn more? Visit Elgin Tax Preparation

Many small business owners as well as individuals, are unaware that they have an attorney-client privilege in tax preparation proceedings. The privileges allow the privileged client to withhold all federal and state taxes, penalties and interest, so long as the taxpayer’s taxes are prepared, filed and paid on or before the due date. Some small business owners and self-employed individuals neglect to forward their federally-assigned payroll taxes to their CPA or tax preparer because of the possible litigation that could arise if they do not retain the services of a competent tax preparer. Because the IRS administers the tax law, an audit is virtually always a possibility even for taxpayers who fully comply with the law.

One way to assure compliance with the law and to avoid the costly audit that comes with improperly prepared tax documents is to obtain and retain the services of a competent tax preparation service. EFT is an electronic tax filing system that provides accountants, attorneys, CPAs and tax preparers with data from the IRS computer system on file in an electronic format that can be accessed by other tax payers or even by tax attorneys, CPAs and tax preparers who access the IRS electronic filing system. This electronic file storage allows tax preparation services and taxpayers to expedite their returns.