At Safe Tax Services, we provide a wide range of services to individuals and businesses in a variety of industries. Our firm strives to meet each client’s specific needs in planning for the future and achieving their goals in an ever-changing financial and regulatory environment.
Tax Preparation Services
Clients who require this type of service can be either an individual or a business entity. Individuals generally have an annual filing requirement for their personal tax return of April 15th of the year following their tax year. They can extend that due date to October 15th. Business entities may have a due date that can be, depending on the type of entity, the 15th of any month of the year. Other business entities must have a calendar year and their returns are also due on March 15th. However the extended due dates of these returns is September 15th. This was done so that individuals who were receiving a Schedule K-1 from these entities would now have time to complete their own returns by October 15th.
Individuals are provided a tax organizer booklet to complete. It is returned along with a signed letter retaining the firm to prepare the annual tax returns. A deposit is also requested at the time the tax return information is provided for preparation. The substance of the letter is to have a mutual understanding between the client and the firm that the returns are prepared based solely on the documents provided to the firm unless the documents raise questions that require further inquiry. Preparation of the returns does not include representation before any tax agency.
A business return is prepared based on books and records of the business transactions for the accounting period. Many businesses provide summaries of their transactions from an automated accounting program like QuickBooks. The preparation of a business return is more complicated and usually requires adjustments to the information provided before the annual accounting is complete. Then the actual preparation of the tax return can be completed. Any adjustments prepared by the firm will be provided to the client so that the annual accounting on the client’s books is the same as the final tax return. A representative of the entity will return a signed letter that covers the services being requested of the firm along with a deposit. This mutual understanding is beneficial to both parties.
Accounting and Bookkeeping Services
- Assist to set up QuickBooks
- Prepare monthly or other periodic bookkeeping services of recording cash transactions, bank reconciliation and prepare interim “compiled” financial statements
- Prepare sales tax returns
- Prepare payroll tax returns (after the fact)
- Prepare annual city business license renewal forms
Tax Representation Services
This type of service is offered to clients who have received a notice from a tax agency (city, county, state or federal) that they personally or their business entity (corporation, partnership, LLC, etc) will be audited. The notice contains contact information to set the initial appointment for the auditor to begin the process of reviewing documentation for the specific areas of the tax return to be reviewed. Since most taxpayers have little background in knowing how to prepare for the audit they will want to use the services of a professional with experience in this area.
Before the professional can make the initial contact on behalf of the taxpayer some tax agencies require that a Power of Attorney appointing the professional to represent the taxpayer must either be provided in advance or be faxed over at the time of the initial telephone contact. It is suggested that if you do not currently have a tax professional to represent you at the time of the receipt of the contact letter that you make the contact ONLY to inform the auditor that you are arranging for a tax professional to represent you and that person will contact the auditor to make the appointment.
The process of selecting a tax professional is not an easy task. Factors to consider are:
- Years of experience in this area
- Continuing education annually in this area
- Contacts with agency senior personnel to solve problems with dealing with the auditor
Once you have selected your representative then you need to have a meeting to review the tax return in question as compared to your supporting documentation. Your representative does not have to have prepared the return being examined to be able to provide a successful result for you. Your representative will then review and prepare the documents to be shown to the auditor. If you do not have all documents your representative can begin the audit and then provide the additional documentation to the auditor at a later date. After the initial meeting of your representative and the auditor the balance of the examination may be handled by mail, fax and phone. In other cases additional face to face meetings may be required. These additional meetings are usually at the auditor’s request.
Should the examination have unresolved issues that need to be carried to a higher level of discussion a US Tax Court petition can be prepared to continue a case without the need to retain legal counsel for this service.
The fee for your representative is usually not a fixed fee. The reason being that auditor determines generally when enough documentation has been presented to satisfy the taxpayer’s burden of proving the deduction. Also the auditor is the one who requires additional face to face meetings. This makes it impossible for your representative to determine how much time will be needed to devote to your case. Our policy is to prepare a letter describing the nature of our services, what documents you need to provide to be able for us to complete the services you have requested and a fee range for the service to be rendered. Normally a deposit is provided at the time that the services are requested.