Is There a Ghost in Your Taxes?

With the rising cost of tax prep, many business owners are asking their bookkeepers to prepare their taxes and then the business owner signs them. this is not taken lightly by the IRS. As a business owner, be sure you are working with a qualified tax preparer this tax season. Your bookkeeper may NOT be qualified to prepare, sign, and file your taxes, let alone represent you to the IRS. So help protect your business and your bookkeeper by partnering your business and bookkeeper with a qualified tax preparer.

The average tax prep and filings start around $1000 and run much higher depending on the complexity of your business holdings. So here are a few tips. 

1. Be sure the bookkeeper you hire is honest about what they are qualified to do for you when it comes to taxes. But remember, a good bookkeeper will keep you on track for tax time regardless of their qualifications for preparing, filing, and representing you to the IRS. A well rounded team (business owner, bookkeeper, and tax professional) results in a quick tax prep and smooth filings. 
2. Budget for tax prep, saving a little each month so you have a good foundation come tax prep time. If your tax prep was $2000 last year, start saving $165/month to put towards next years tax prep. 
3. Be sure your tax preparer is either an Enrolled Agent or EA, with the IRS, hold a valid CPA license, or are qualified by H&R block, Intuit or another 3rd party tax prep company. There are over 65 thousand Active Enrolled Agents in the U.S. These people are vetted and qualified by the IRS. You can find a list of EA's at: https://www.irs.gov/tax-professionals/enrolled-agents/active-enrolled-agents-and-the-freedom-of-information-act
4. DO NOT pay an upfront fee for their services. Only pay them once the form has been completed and signed by the tax preparer. Be sure your form is signed by your paid preparer. Read more about "ghost" tax preparers in this article: 
   https://www.accountingtoday.com/.../irs-warns-of-ghost...
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If you are an organization leader who is looking for a bookkeeper who knows how to keep you on track for your tax preparer, Candance Weaver Bookkeeping is here to serve you. Please contact us at: cmweaver [at] cwbookkeepingservice [dot] com or 865-951-7407. 
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