The Basic Features of Our Accounting Services
- 1) Profit and Loss Statement – monthly or quarterly.
- 2) Unlimited discussion of your accounting and business related questions by phone or at our office.
- 3) Timely preparation of all state and federal returns.
- 4) Pick up and delivery of your accounting records, or internet transfer via our secure web portal.
- 5) Tax planning and preparation.
- NOTE – We offer many other services on an as needed basis. Please ask us and we will be happy to explain how these services can help YOUR business GROW.
The Benefits You Will Receive
- PROFIT AND LOSS STATEMENTS will help you monitor your business better, allow you to see trends developing, and help you plan for the future.
- USE AS A SOUNDING BOARD in all important financial decisions. This will help you make the right decisions and help you understand the new tax laws.
- PEACE OF MIND – knowing your tax reports are correct and filed on time saves you money in penalties and interest for late filing.
- CONVENIENCE – We come to you each month, or you can send them via the internet or mail them. Also, we make sure tax reports to the state and federal authorities are filed on time.
- THE MORE YOU MAKE the more the IRS will want to take. We will show you how to keep more LEGALLY.
General Statistics Show 80% of New Businesses Fail Within the First 5 Years… Why?
- Poor Financial Advice.
- Poor Capitalization.
- Poor Planning.
We Can Help By:
- Providing you with good, sound tax and financial advice.
- Preparing financial statements to enable you to secure working capital.
- Assisting you in planning for the future.
Penalties Cost You Money! Our Service Is Designed to Help You Avoid Paying More Money to the IRS.
SUBSTANTIAL UNDERSTATEMENT: For an individual, income tax is substantially understated if the understatement of the tax exceeds the greater of: 10% OF THE CORRECT TAX OR $5,000.
FAILING TO PAY TAXES: If you did not file on tie and owe tax, you may owe an additional penalty for failure to file unless you can show reasonable cause. The combined penalty is 5 PERCENT (4.5% LATE FILING, 0.5% late payment) FOR EACH MONTH, OR PART OF A MONTH, THAT YOUR RETURN WAS LATE UP TO 25%. The late filing penalty applies to the net amount due, which is the tax shown on your return and any additional tax found to be due, as reduced by any credits for withholding and estimated tax and any timely payments made with the return. After 5 months, if you still have not paid, THE 0.5% FAILURE-TO-PAY PENALTY CONTINUES TO RUN, UP TO 25% UNTIL THE TAX IS PAID. Thus, the total penalty for failure to file and pay can be 47.5% (22.5% LATE FILING, 25% LATE PAYMENT) OF THE TAX OWED. ALSO, IF YOUR RETURN WAS OVER 60 DAYS LATE, THE MINIMUM FAILURE-TO-FILE PENALTY IS THE SMALLER OF $100 OR 100% OF THE TAX REQUIRED TO BE SHOWN ON THE RETURN.
NOT DEPOSITING PAYROLL TAXES ON TIME: Failure to make timely deposits of employment taxes can result in the Federal Tax Deposit (FTD) penalty being assessed. The penalty is based on a graduated four-tier system. The penalty amount varies with the length of time within which the taxpayer corrects the failure to make the required deposit. It is determined as follows:
- 2% – Payment is no more than 5 days late.
- 5% – Payment is more than 5 days late but no more than 15 days late.
- 10% – Payment is more than 15 days late.
- 15% – If the payment is not made on or before the day that is 10 days after the date of the first delinquency notice to the taxpayer.
- 10% – Amounts subject to electronic deposit requirements but not deposited using the Electronic Federal Tax Payment System.
- 10% – Deposits made at an unauthorized financial institution, paid directly to the Internal Revenue Service, or paid with the tax return (when FTD deposits are required).
FILING INCORRECT OR INCOMPLETE RETURNS: Any person who does not file an information return or a complete and correct information return with the IRS by the due date is subject to a penalty for each failure. A penalty applies to information returns as follows:
CORRECT INFORMATION RETURNS FILED WITH 30 DAYS AFTER THE DUE DATE, $15 EACH.
CORRECT INFORMATION RETURNS FILED AFTER THE 30 DAY PERIOD, BUT BY AUGUST 1ST, $30 EACH.
INFORMATION RETURNS NOT FILED BY AUGUST 1ST, $50 EACH.
OMITTING TAXPAYERS IDENTIFICATION NUMBER: Any person who does not comply with other specified reporting requirements, including the use of correct identification numbers (employer identification numbers and social security numbers), IS SUBJECT TO A PENALTY OF $50 FOR EACH FAILURE. MAXIMUM PENALTY FOR OMITTING IS $100,000.
FRAUDULENT UNDERPAYMENTS: If your failure to file is due to fraud, the PENALTY IS 15% FOR EACH MONTH OR PART OF A MONTH THAT YOUR RETURN IS LATE, UP TO A MAXIMUM OF 75% ON THE PORTION OF UNDER PAYMENT.