Tax filing can be quite overwhelming for a foreign business owner, or even for other business owners when it comes to dealing with the IRS.
Some people decide to tackle their taxes alone, while others choose to work with a certified tax expert. If you are wondering, is there any real necessity to hire a professional tax expert for IRS filing?
Let’s discuss the elements that influence the choice of seeking professional assistance or going solo for taxes.
When You May Not Need a Tax Preparer for IRS Filing
Hiring a certified tax professional becomes irrelevant in straightforward tax situations. Here are some tax scenarios that allow taxpayers to use DIY tax filing methods:
Tax Deductions: If your sources of income are limited to W-2s or if you collect rental income, you can do your taxes through tax software. A standard tax filing can be conveniently done using tax software or IRS free file.
Tax Filing Services: Every person can conveniently file their returns through tax software like H&R Block or Turbo Tax, as they come with built-in step-by-step guides.
Self-Managed Freelancers: Software developed for self-employment tax filing makes it incredibly easy for small business owners and freelancers, to operate their business with absolute peace of mind.
Students and Low-Income Individuals: Many students as well as low-income earning individuals may be eligible for free tax filing services, and can complete a return without any extra out-of-pocket expenditures.
No Major Life Changes: If you haven’t undergone any substantial changes in your life such as getting married, having kids, purchasing a new house, or receiving an inheritance, your taxes should be straightforward enough to file without needing assistance.
When Hiring a Tax Preparer Is Recommended
Individuals and businesses with more elaborate tax situations may benefit substantially from the services of a tax professional. Some scenarios that warrant professional help are:
1. Business Owners and Entrepreneurs
If you run a Limited Liability Company (LLC), corporation, or any business, your tax filing will be more complex. A tax preparer can assist you with:
- Proper recording of business expenses
- Filing of IRS Form 1120, 1065, Schedule C, etc
- Payroll and self-employment tax issues
- Tracking tax credits and tax deductions to reduce your income tax
- Compliance with IRS regulations to evade litigation
2. Foreign-Owned U.S. LLCs
Specific rules apply to the tax filing of other states’ non-residents who own LLCs in the U.S., and they include the following:
- Filing of Form 5472 for foreign-owned LLC
- Tax treaty advantages
- Double taxation and compliance issues
- State-specific taxation and compliance barriers
- Business record substantiation for expenditures
3. Individuals with Multiple Income Sources
Investors, landlords, and multi-job holders are best served when a tax practitioner has prepared their returns. They can also assist with:
- Tax Writs for Capital Gains Tax and Losses
- Foreigner income reporting
- Self-employment tax filing for gig economy workers
- What LLC owners need to know about pass-through taxation
4. Responding to IRS Notices and Audits
It’s nervous and overwhelming when you receive an IRS audit notice in the mail. Here is how a tax preparer or CPA can help:
- Speak to the IRS for you
- Submit documents that can clear the issues you are facing
- Minimize penalties
- Educate you about your audit rights and responsibilities
- Help you with amendment filing when needed
5. Saving Time and Decreasing Mistakes
Changing tax laws plus misfiling equals tax penalties. Personal tax preparers uphold compliance and accuracy, so you don’t spend time trying to untangle legal issues patented to the incorrect filing. They also do the following:
- Monitor the shift in laws and policies
- Accumulate all expenses and earnings that were presented incompletely
- Assist with state taxes which are not always the same as federal taxes
- Find deductions and credits that were previously untapped
What EasyFiling Can Do For Us When Filing IRS Taxes
We provide easy, smooth, and stress-free tax filing services for foreign entrepreneurs, self-employed individuals, and business owners at EasyFiling.
Our tax experts make sure that you abide by all tax stipulations set forth by the IRS, therefore granting you the highest amount in deduction and tax allowances possible. Here is how we help:
Tax Filing LLCs and Businesses: We prepare all IRS forms the business requires including Forms 1065, 1120, and Schedule C so the business remains compliant.
Compliance of Foreign Owned LLC’s Payable: We help with Form 5472 filing, international taxation, and penalties for non-compliance for foreign taxpayers.
State Tax And Federal Tax Returns: Timely preparation and submission of both federal and state tax returns are done with proper compliance.
Audit Support And Communication With The IRS: We will assist your business with professional representation in an audit situation or respond to any IRS inquiries.
Maximized Tax Deduction: We review your transactions and claim appropriate deductions on your behalf so that your tax liability would be as minimal as possible.
E-filing To Improve Processing Times: As authorized e-file providers by the IRS, we process your tax returns electronically to ensure faster refunds.
Quarterly Payments Estimates: We assist unincorporated business people and enterprises in paying projected tax liabilities to avoid paying penalties for not paying enough tax.
Tax Planning And Bookkeeping: The records are prepared and maintained in a way that filing tax returns simple for your business.
With EasyFiling, you can now grow your business while we handle the taxes. Don’t hesitate to reach out if you need expert guidance tailored to your specific needs.
Conclusion
Individuals with simple tax returns may find it easier to self-file, but for business owners, foreign entrepreneurs, or anyone with a more complicated financial situation, having a tax preparer may be the most effective choice.
Aside from being compliant with IRS tax regulations, an experienced tax preparer can guarantee tax optimization and help prevent any costly oversights.
If you are confused and need clarity regarding your tax situation, a tax professional can relieve your worries. Need help?
If you are an LLC or a foreign entrepreneur, EasyFiling is here to help you with all your tax preparation. Book a free consultation today.
Nabin Adhikari
