Blogs

Did you know the US government loses 90 billion dollars each year to tax evasion? Paying your taxes as a responsible business can do so much for your company; it improves your reputation and establishes your credibility as a reliable and authentic company.

However, calculating the tax and making timely payments can be a hassle, which is why we recommend you hire tax consultancy services. Keep reading this article to learn about three factors to consider before selecting a tax consultant in the US.

Does The Tax Consultant Have Any Additional Certifications?

If you’re hiring a tax consultant, you’d want to ensure that your tax management is foolproof. If your tax consultant has additional certifications, that shows they’re skilled in many areas and can be an asset for your company.

You should only consider tax accountants who have received tax coach certifications as these consultants can handle rigorous tax payments and ensure all your payments are delivered to the IRS smoothly.

Is The Accountant Experienced?

You wouldn’t want a newbie to handle your tax accounts as they can end up making several mistakes. Even a small error in your tax payments can land you in trouble with the Internal Revenue Service (IRS).

This is why you should ensure that your tax accountant is experienced and can handle different types of tax payments. You can ask the tax consultant for testimonials from previous clients to determine their quality standards.

Does The Accountant Offer Other Services?

If you’re looking for a one-stop solution for all your financial problems, hire accountants who don’t just offer tax management services but can also conduct efficient financial reporting and assist in business formation, making it a win-win situation for you.

Hiring a single accountancy firm that provides bookkeeping, payroll, and tax services can reduce the burden on your firm’s budget.

Certified Tax Consultants Available In The Bay Area To File Your Taxes

Are you looking for experienced tax accountant in bay area for the best services? You’ve come to the right place! At Nidhi Jain CPA. we’ve got a team of certified tax accountants that can file your taxes easily and handle all the paperwork.

We can also help you set up an LLC, S corporation, C Corporation, and partnerships to kick-start your business. We also deliver top-of-the-line bay area bookkeeping and accounting services to help you manage your financial records accurately.

You can get in touch with them here for more details.

You’ll be surprised to know more than fifty-five major companies in the US failed to pay any taxes in 2020. Once the government crackdown starts, these firms will have to face severe tax evasion charges. You wouldn’t want to be on the list, right?

…

Filing Business Taxes: A Step-By-Step GuideRead More »

It’s tax season, and for many people, it’s time to gather all of your documents and prepare to file your return. But what if you don’t file? There are many consequences, and they can be pretty serious. So, if you’re thinking about skipping out on filing this year, think again. It’s not worth the risk. Here are the consequences of not filing your tax return.

A Failure to File Penalty

The IRS will eventually find out if you do not file a return. In fact, if you’re getting a refund, they’ll likely find out pretty fast. The charges will include heavy interest and penalties. However, the IRS has three years from the original deadline of your return to claim their money. If they don’t, the statute of limitations on collections expires.

Late Filing Penalties

If you file your returns late, the IRS will hit you with a penalty for each month that your returns are late. It’s 5% of what you owe per month up to a maximum of 25%. However, if you can show reasonable cause for filing late, the penalties will be waived.

Interest Charges

Suppose you file your return late and pay less than 90% of what you owe. In that case, you’ll also get hit with interest charges on the unpaid balance – compounded daily at a rate that is determined every three months and is based upon the average market yield on outstanding marketable U.S. Treasury Bills.

Failure to Pay Penalties

If you file your return but don’t pay what you owe, the IRS will hit you with late payment penalties of .5% of the tax owed plus 1% per month until it is paid in full or within six months, whichever occurs first. The maximum penalty is 25%.

Accuracy Related Penalties

If you underpay your taxes due to negligence or fraud, the IRS will hit you with accuracy-related penalties of 20% of the additional tax found to be due. Negligence occurs when a taxpayer fails to make a reasonable attempt to comply with the law. Fraud is intentional wrongdoing on the taxpayer’s part with the specific intent to evade paying taxes.

Fraud Charges

If you willfully attempt to evade or defeat taxes, you can be fined $100,000 or imprisoned for up to five years. If you’re caught assisting someone in avoiding federal taxes – like preparing a false return for them – the fines go up to $500,000 or up to ten years in jail.

Other Consequences of Not Filing

If you don’t file your income tax return, you could lose the aforementioned refund. You may also lose eligibility for certain federal benefits like social security and Medicare. And if you’re getting monthly payments from an employer or payer (like unemployment), they’re going to stop until a return is filed and taxes paid.

Are you tired of managing your business accounts all by yourself? It’s time to hire expert accountants from Nidhi Jain CPA. to ensure all your firm’s financial information is recorded accurately. Our financial advisors provide comprehensive cloud-based accounting solutions and conduct efficient financial reporting. We also provide tax planning in Bay Area, and our certified accountants have received tax coach certification from the American Institute of Certified Tax Coach.

You can get in touch with them here for more details.

FBAR is an acronym for the Foreign Bank Account Report, which Congress created in 1970. It’s a report that every person with over USD 10,000 in foreign bank accounts has to file with the U.S. Treasury Department on their tax return each year. The purpose of this law is to make it easier and faster for authorities to identify people having foreign financial assets and locate those who might have been involved in illegal activities abroad. This blog post will discuss everything you need to know about FBAR.

What is FBAR?

The Foreign Bank Account Report is a form that every person with foreign bank accounts files each year with the United States Treasury. It’s a form containing all the information about your foreign accounts and other financial data about you. This report must be filed no later than 60 days after the end of the tax year. This law is designed to make it easier for authorities to identify people with foreign financial assets and locate those who might have been involved in illegal activities abroad.

Who must file FBAR?

Everyone with over USD 10,000 worth of foreign bank accounts must file an FBAR each year with the U.S. Treasury Department. This includes both U.S. citizens and non-U.S. citizens, but only if they have lived in the United States for at least 60 days during the tax year preceding their filing of this form. If you are a non-U.S. citizen, you will need to file this form if you have at least one foreign bank account with a balance of USD 10,000 or more during the tax year preceding your filing of this form.

Is FBAR required for all people?

No. This form is only required for people with foreign bank accounts who have lived in the United States for at least 60 days during the tax year preceding their filing of this form.

What information must be included in FBAR?

The FBAR must include a list of all foreign bank accounts you have with a balance of more than USD 10,000 during the tax year preceding your filing of this form. Each account must be listed separately, and it must also be identified by account number and branch name. You also need to include information about each account, including the type of account (i.e., checking, savings), its location, the name of the owner, the date it was established, whether you are a U.S. citizen or not, and any other information that you think is necessary to complete this form properly.

What happens if I don’t file FBAR?

If you do not file an FBAR, you will be subject to a penalty of USD 10,000 each time you fail to file one. The penalty is USD 10,000 for each quarter that you have not filed the FBAR. If you are a non-U.S. citizen and have more than one foreign bank account with a balance of more than USD 10,000 during the tax year preceding your filing of this form, then you will be subject to a penalty of USD 50,000 for each quarter that you have failed to file an FBAR. If this happens once in three quarters, the total penalty increases by USD 100,000 per quarter.

Are you looking for experienced tax consultant in San Jose? You’ve come to the right place! A Nidhi Jain CPA.we’ve got a team of certified tax accountants that can file your taxes efficiently and handle all the paperwork. Our professionals can also help you with the FBAR process. We also deliver top-of-the-line bookkeeping and payroll services in bay area to help you manage your financial records accurately. You can reach out to us here for more details.