Tax Return Preparation: A Guide for Individuals, CPA & Small Business

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A Quick Guide for Individuals, CPA and Small businesses that covers a huge information about Tax, Tax Forms & their Significance, Software used to prepare Tax, Tax Troubles/ Issues & the Simple way out for the Best Tax Preparation for the Upcoming Year.

Published in: Economy & Finance

Tax Return Preparation: A Guide for Individuals, CPA & Small Business

  1. 1. Tax Returns Preparation - An Easy Guide for Individuals, CPA’s & Small Business Copyright © 2016 Cogneesol | +1-646-688-2821
  2. 2. Table of Contents WHAT IS TAX? HOW TO PREPARE TAX? WHAT ARE TYPES OF TAX FORMS? WHAT SOFTWARE ARE USED TO PREPARE TAX? IS IT A GOOD IDEA TO PREPARE YOUR OWN TAX? WHAT ISSUES CAN COME UP DURING TAX PREPARATION? WHAT IS the SIMPLE & SAFE SOLUTION? WHAT IS IN-HOUSE & OUTSOURCE TAX PREPARATION? HOW BACK-OFFICE HELPS FOR BEST TAX PREPARATION? Copyright © 2016 Cogneesol | +1-646-688-2821
  3. 3. What is TAX? Copyright © 2016 Cogneesol | +1-646-688-2821 According to Wikipedia, Tax is a Financial Charge Usually Calculated in Percentage (%) or Other Levy Imposed Upon a Taxpayer by a state or the Functional Correspondent of a State to Fund Various Public Disbursements. It’s Enforced by Law & Violation of the same is Considered as a Sin & Lead to Punishment. The basic purpose of Taxes is to raise Revenue to Fund Government. In US, It’s Federal Tax that is Filed by a Predefined Minimum Wage Folks. Tax Types: Income Tax, Sales Tax, Property Tax, Inheritance Tax, Wealth Tax, Excises Tax, Payroll Tax, Capital Gains Tax, Corporate Tax etc.
  4. 4. How to Prepare TAX? Copyright © 2016 Cogneesol | +1-646-688-2821 - A Step by Step Procedure (Tax Return Preparation)  Determine if You are Required to File a Tax Return (What matters is – Age, Annual Income, Marital Status etc.).  Manual: Get the Tax FORMs from Local Library, Post Office or IRS Website, Prepare Your Federal & State Taxes According to the Instructions, Mail to your Tax Returners & Make Payment.  E-File: Choose an Affordable Tax Preparation & E-File Program (Pro-Series, Lacerte, TurboTax, UltraTax, ATX), Install the Software & Begin Filling in the Requested InFORMation.  Don’t Forget to Review the Prepared Returns & Get Help from Professional to Minimize Mistakes.
  5. 5. What are Different Types of TAX Return FORMs? Copyright © 2016 Cogneesol | +1-646-688-2821 FORM 1040 FORM 1040A FORM 1040EZ FORM 1040NR FORM 1040NR-EZ U.S. Individual Income Tax Return on Gross Income U.S. Individual Income Tax Return Income Tax Return For Single & Joint Filers With no Dependents U.S. Nonresident Alien Income Tax Return U.S. Income Tax Return for Certain Nonresident Aliens with no Dependents "A Long FORM". It is More Complex & Consists More Opportunities to Lower Tax Bills. "A Short FORM". It Allows Taxpayers to Report Common Types of Income, Tax Credits, & Tax Deductions. "Shortest Individual Income Tax FORM". Similar to FORM 1040. For US Non Residents Either they are Engaged to Any Business or Getting Paid. You can’t Claim Any Dependents & You Can’t be Claimed as a Dependent on Someone Else’s Tax Return.
  6. 6. TAX Return FORM - FORM 1040 Copyright © 2016 Cogneesol | +1-646-688-2821
  7. 7. TAX Return FORM - FORM 1040A Copyright © 2016 Cogneesol | +1-646-688-2821
  8. 8. TAX Return FORM - FORM 1040EZ Copyright © 2016 Cogneesol | +1-646-688-2821
  9. 9. TAX Return FORM - FORM 1040NR Copyright © 2016 Cogneesol | +1-646-688-2821
  10. 10. TAX Return FORM 1040NR-EZ Copyright © 2016 Cogneesol | +1-646-688-2821
  11. 11. TAX Return FORMS COMPARISON Form 1040 Returns, 59% Form 1040A Returns, 29% Form 1040EZ Returns, 13% In this Pie Chart, We’ve explained this easy graph of America’s average Tax Return ratio 2015, of individuals or entrepreneurs Tax Returns Forms filled as: * Form 1040 Individual Tax Returns, * Form 1040A Income Tax Return & * Form 1040EZ Return for Joint Accounts with no Dependents. Copyright © 2016 Cogneesol | +1-646-688-2821 According to 2015 Tax Returns Ratio
  12. 12. What Software are used to Prepare TAX? Copyright © 2016 Cogneesol | +1-646-688-2821 For United States For Canada For United Kingdom For Australia  QuickBooks  ProSeries Tax  Lacerte Software  Ultra-Tax  Turbo Tax  ATX  Cantax  Taxnic  TaxPrep  Quicken  Ufile  TurboTax  CCH Software  IRIS Software Ltd.  Sage Ltd.  Thomson Reuters  Thomson Reuters  CCH ProSystem  H&iSoft  MYOB  Taxcat
  13. 13. Is it a Good Idea to Prepare Your Own TAX? Copyright © 2016 Cogneesol | +1-646-688-2821 Preparing your own Taxes is a Best Idea if you have the Complete Track of Your Income, Transactions, Expenditure of Current Tax Year. This Enables You to Save Extra Efforts & can be easily Transferred to your Tax Software. But This Limits for an Individual or Joint Tax Filing. It Becomes Complex to Prepare Tax Returns of Small or Medium Sized Businesses.
  14. 14. What Issues can Come up During TAX PREPARATION? Copyright © 2016 Cogneesol | +1-646-688-2821 Penalty for Underpayment of Tax Liquid Federal Tax Policies Trade or Business Expenses Charitable Deductions Confusion over Tax Categories Day-to-Day Payroll Errors Unorganized Financial Statements Summons Enforcements
  15. 15. What is the Simple & Safe Way-out to Prepare TAX? Copyright © 2016 Cogneesol | +1-646-688-2821 The Easiest Way for the Best Tax Returns Preparation is to Hire a Professional Who will be Responsible to Gather the In-depth Knowledge of Your Books & Update All Business Expenditures, Payables & Investments to Minimize the Costs, Time & Mistakes. An Expert Can Help you out With Actual Returns Without Penalty. A Professional Can be a Certified Public Accountant or A CPA Firm. It’s a Decision of Business Firm, Either to Hire In-house professional or to Outsource Overseas Rendering their Budget & Priorities. TAX BEST
  16. 16. What is In-house & Outsource TAX PREPARATION? Copyright © 2016 Cogneesol | +1-646-688-2821 In-House Tax Preparation Outsource Tax Preparation When a Business chooses to Hire a Professional CPA or Expert Accountant to Prepare their Taxes as a Full Time Employee, This can be called as In-House Tax Preparer. When a Business choose to Hire a Professional CPA, Service Provider or an Agency overseas to Prepare & Manage their Taxes, This is known as Tax Preparation Outsourcing.  Reasons Hire: Full time Requirement, Budget Priority, Less Complex Business, Requires Superlative Communication.  Reasons To Outsource: Specialized Skills, Specialized Tools, Seasonal Needs, Limited Requirements, Temporary Jobs, Reputed Firms.
  17. 17. How Outsourcing Helps for Best TAX PREPARATION? Copyright © 2016 Cogneesol | +1-646-688-2821  Cost & Time Save  Fulfilled Deadlines  No Need to Purchase Software  Negligible Staffing Issues  Hi-Tech Infrastructure  Quality Assurance  Expert & Skilled Solutions  Increased Efficiency  Minimized Errors  Focus on Core Activities  Customer Satisfaction  Minutest Confusions
  18. 18. Conclusion Copyright © 2016 Cogneesol | +1-646-688-2821 It’s obvious that every business owner does not want to pay extra amount of tax and also does not want any penalty by the court. Thus, The Ultimate Solution for best Tax Preparation is to hire an expert either in-house or outsource. This will make business owner to focus on his/her core tasks that will help them out with increased business efficiency and accurate tax returns preparation.
  19. 19. Sponsored by: Cogneesol Pvt. Ltd – A Business Outsourcing Company offering premium back-office services to it’s customers worldwide. Services: Accounting Back-Office Accounting, Bookkeeping, Payables, Receivables, Tax, Payroll Processing, Financial Reporting. Insurance Back-Office Policy management, Commissions, claims, New Business Insurance. Legal Back-Office Services Litigation Support, Legal Research & Writing, Paralegal Support, Contract Drafting, Deposition Summary, Document Review. Data Management Data Entry, Forms Processing, Data Mining, Transaction Processing, Data Analysis, Administrative Support. Research & Analysis Financial Research & Analysis, Market Research & Analysis. Technology Outsourcing Web Development, SEO, Software Solutions, Smartphone Apps, Web Designing , Internet Marketing. Copyright © 2016 Cogneesol | +1-646-688-2821
  20. 20. Share your Feedback: Copyright © 2016 Cogneesol | +1-646-688-2821
  21. 21. References: o https://www.cogneesol.com/tax-preparation-services o https://en.wikipedia.org/wiki/Tax o http://www.wikihow.com/Do-Your-Own-Taxes o https://www.irs.com/articles/individual-income-tax-return o http://www.businessnewsdaily.com/6012-tax-tips-for-small-businesses.html o https://www.cogneesol.com/blog/top-7-tax-preparation-challenges-being-faced-by-cpas o https://www.cogneesol.com/blog/review-ultratax-tax-preparation-software o https://www.cogneesol.com/blog/tax-preparation-software-turbotax-vs-cpa o https://www.cogneesol.com/blog/best-accounting-software-for-small-businesses o https://www.cogneesol.com/blog/xero-and-sage-accounting-software Copyright © 2016 Cogneesol | +1-646-688-2821
  22. 22. Thanks For your Time!! Copyright © 2016 Cogneesol | +1-646-688-2821

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