Although the concept of federal and state business tax preparation is relatively straightforward, getting everything right is another matter. The sheer complication of business tax forms, laws is such that even the most honest and diligent efforts may still not be enough. This is where an EA enrolled agent plays a key role.
Filling out forms such as 1120, 1120S, 706, 709 or 1065 for example may be a complicated affair that requires considerable knowledge of the federal tax system. This is because one mistake may lead to a series of events that seemingly spin out of control. By having the right small business tax preparation specialist thanks to an enrolled agent, you may avoid such issues in the first place.
Put simply, this is a person who is recognized by the US Treasury for their knowledge of tax law. Interestingly enough, the existence of the enrolled agent pre-dates the implementation of personal and business income taxes.
In 1884, the Department of Treasury was facing claims filed by litigants who were seeking compensation for the destruction that occurred during the Civil War almost 20 years earlier. In response, the department created the enrolled agent. A person that met certain qualifications who could represent the interests of those who filed claims against the US Treasury.
At that point, Congress demanded proper regulation which resulted in establishing the qualifications and responsibilities that such agents would have to meet. As the tax laws changed over the years, so too did the requirements for being an enrolled agent. Their duties extended beyond representation and began to move out to individuals and businesses in terms of tax preparation and representation 1120, 1120S, 1065 returns.
As per Circular 230 of the US Treasury, the current qualifications and responsibilities of enrolled agents are as follows.
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There is an application process with the US Treasury which runs the IRS. As part of the qualification, several tests are performed to see if the applicant possesses the knowledge necessary to be fully informed of US tax law. If the tests are passed, then the person can become an enrolled agent.
However, the testing does not stop with the application process. Every three years, an enrolled agent must take up to 72 hours of continuing education courses in order to maintain their license. This means that they must pass such continuing education to keep their licenses. If they are members of national organizations such as the National Association of Enrolled Agents (NAEA), then they must comply with at least 30 hours of continual education every year to maintain their status in the organization.
Such high standards which mean that there are just fewer than 54,000 enrolled agents in the US. For small business owners, having an enrolled agent by your side means getting the type of help you need for your business tax preparation and more.
The most common way an enrolled agent helps is by providing comprehensive federal, state business tax preparation and planning services. This means working with you to ensure that your tax forms are fully and properly filled out, all deductions taken and minimize tax burden by proper tax planning. This most important business-owner service provides you with the following:
Expert Advice: The comprehensive knowledge of federal tax laws means that an enrolled agent can offer the best in tax advice. This includes deductions that you might take, potential issues that may be avoided, and filling out the right forms to get the best results. For many business owners, having access to someone with the qualifications and experience of an enrolled agent may save a considerable amount of money each and every year.
Representation: But what if the IRS decides to audit your taxes? This can be a trying time for any small business owner to have to deal with the IRS. But an enrolled agent can represent you in such a situation. In fact, they are empowered to represent your interests to ensure that you are being treated fairly. Plus, they have the experience and knowledge to provide expert guidance in such situations such as delinquent back taxes, 941 employment payroll problems.
This means that you will know what is happening, what the options are, and what you can do to best get through an IRS or state audit.
However, it is important to note that an enrolled agent is specialized to deal in federal tax law, and state tax law. So they can prepare 1120, 1120S, 1065 business returns, and represent you before federal and state agencies.
The assistance that this type of professional agent brings is invaluable. They offer the best in advice, guidance, and representation when it is needed with your federal, state tax forms and facing audits, back taxes. In addition, they can help keep your small business abiding by the changes in the tax laws. This is because of the continual education that is required for all enrolled agents.
The goal of all small business owners should be compliance with all federal tax requirements, and maintaining accurate bookkeeping and accounting. The enrolled agent offers expert tax, accounting services which help ensure that your small business meets all such requirements. In addition, their understanding of the tax law is such that they can provide expert help in finding deductions and other legal methods to protect your hard-earned business income.
And, if the worst should occur and you find your small business facing an IRS or state audit, then you can rely on the services of an EA enrolled agent to provide proper representation. This means having a person with the knowledge of tax laws by your side. Plus, getting the best advice as to what course of action to take in such circumstances.
If you are looking for reliable 1120, 1120S, 1065 tax preparation services for your company, LLC, corporation, or partnership, then seeking out the services of an enrolled agent is highly recommended. They provide the best in small business tax preparation services thanks to their knowledge of the current tax laws. Plus, they must abide by ethical standards and have the power to offer representation when needed.
Get professional help today at 1-877-788-2937.