Lester Bahr CPA, LLC
Allentown, Pennsylvania
Enlightened solutions within your grasp
Sole proprietorship – without having formally established a corporation of LLC state registered entity.
Single Member LLC's - With a state registered business, entity disregarded for tax filing and files Schedule C, unless an election is made for an alternative taxation treatment.
State corporate or partnership tax returns - are required filings in addition to the federal tax filings as per above.
Personal taxes – At the federal, state and local level which of course affect nearly everyone but carry double significance for business owners of pass-through entities and sole proprietorships.
Then depending on your business activities there may be other tax filing compliances you have in the capacities of payroll taxes, sales taxes, and others.
An integral part of the tax preparation process begins with the correct structure and accuracy of your accounting records. For this reason, I work with businesses to first do the necessary cleanup and restructure of QuickBooks so that accuracy in the financial reports can be relied upon in preparing accurate tax returns.
So, what should you consider when choosing a tax preparer?
The IRS offers you some guidelines on their website at this link titled: “Tips for Choosing a Tax Return Preparer”
Here are the most salient points in that article:
You are ultimately responsible for what is on your tax return. So, it’s important to keep organized and well documented records and provide all information to your tax preparer.
Check the person’s qualifications. All tax preparers are required to have Preparer Tax Identification Numbers (PTIN’s). IRS suggests that you choose a preparer who is affiliated with a professional organization and attends continuing education classes.
Check the preparer’s history. Check to be sure there are no questionable issues with the Better Business Bureau; no disciplinary or licensures problems which you can check with the state board of accountancy.
Avoid preparers if they base their fees on a particular tax return outcome. For example if they base it on a percentage of the refund or if they claim they can obtain larger refunds for you than other preparers. Also, make sure that any refund is being sent to your bank account – never to a bank account of the preparer.
Make sure they offer electronic filing. Any tax preparer who files more than 10 returns for clients is required to use electronic filing.
Make sure your tax preparer is accessible all year long if you have questions, not just up to April 15th.
Make sure your tax preparer is requesting complete documentation to support the amounts that will be filed on your tax return.
Never sign a blank return. That should be obvious.
Review the return before you sign it. Remember, as the taxpayer you have ultimate responsibility for any return you sign. So, don’t be afraid to ask questions about anything on the tax return you do not understand. Make sure the tax preparer has always provided you with complete copies for your records of all tax returns to be filed.
Make sure you have received, signed and returned the electronic filing form. That is required before transmission of your electronically filed tax return.
Tax Preparation Filing Services
Tax laws are always changing and tend to grow in complexity over time. Business owners and individuals discover they simply can’t keep up to date with all the methods, rules and regulations associated with federal, state and local taxes.
As a CPA my process encompasses tax planning and preparation with accuracy and thoroughness of tax returns prepared in compliance with tax regulations.
Know what your tax filing obligations are. Some of the most common include:
Corporation Tax - if you have an incorporated business entity.
S Corporation Tax - If you have properly filed a timely S election and received confirmation of IRS approval.
Partnership tax – which also applies to multi-member Limited Liability Companies (LLC’s) unless an election is made to be taxed as another entity type.
