Probably the first thing most people think of when they think of accounting firms is income tax returns, and with good reason: we prepare a lot of them. That process includes obtaining client information, organizing it for presentation in return form, determining the tax benefits for which the taxpayer is eligible, preparing the return in a way that is consistent with the government’s requirements and appropriately presents the taxpayer’s tax position, and coordinating signature and filing.

Logo-Bullet International Transfer Reporting

Our reporting practice involves more than just income tax returns. First, businesses are required to report payments they make to employees, contractors, investors, lenders, licensors, etc. Those reports (such as Form 1099) must be provided promptly and accurately; problems with them, in addition to potentially violating tax requirements, can impair important business relationships. Determining how to apply the requirements can be complex and difficult, especially in the case of international payment reporting. We help our clients navigate those issues.

Recently, new laws have begun to require various forms of foreign financial account disclosure and other international financial activity reporting (including Form 5471 and Form 5472). Those requirements are complex, and the penalties for violating them are draconian. TaxGroup understands and helps our clients comply with those requirements.

Reporting also includes calculation and payment of estimated taxes. Paying no more than the required amount can be very helpful for cash flow, but paying too little can result in penalties. Furthermore, some tax return filing extensions may be invalid if not accompanied by adequate estimated tax payments.

Logo-Bullet Tax Elections

Perhaps the most subtle part of tax reporting is the analysis of tax elections. Taxpayers are given innumerable opportunities to make elections that can dramatically affect their tax circumstances. Unfortunately, a large proportion of those elections are foregone because they are overlooked. We are knowledgeable about available elections and experienced in determining whether they should be made. Furthermore, when we discover that at some time in its past a client has missed an opportunity to make a critical election, we are conversant in the sometimes-available procedures for making late or retroactive elections.