Latest News on Denver Accounting & Taxes

A variety of different people can assist you with accounting and tax questions. Considering the advantages of professional tax preparation, you should look into your available tax assistance options. Friends and family often offer their advice, whether warranted or not. Even when seeking professional help the choices can be confusing to the average individual.

According to the Merriam-Webster Dictionary, an accountant is someone who is skilled in the practice of accounting or who is in charge of public or private accounts. By this definition many individuals are skilled in the practice of accounting, but does it mean they are all accountants?

Are you in charge of your own private bank account? Are you an accountant?

Probably not, but when seeking professional assistance it is important to understand the titles associated with those you trust to either handle your finances or keep your business in good standing with both the federal and state governments. Especially when it comes time for tax filing and if or when the Internal Revenue Service (IRS) becomes involved in any situation. Expert help is key for tax preparation, filing, and any audits that may be ordered or taking place.

Following are a few different labels often attached to accountants names and a brief description of each.

Paid Preparer

An individual who is a paid preparer is exactly that. Someone who is receiving payment in exchange for preparing and filing individual or business tax returns. These people have obtained a PTIN (Preparer Tax Identification Number) from the IRS and are authorized to prepare tax returns.

Certified Public Accountant

A CPA has been trained and tested, earning a state issued license to publicly practice accounting. While the requirements differ for each state, at minimum a CPA has passed the uniform Certified Public Accountants exam, 150 semester units of education, and one year of accounting related experience.

While most CPA’s will also acquire their PTIN since they are often preparing tax returns for compensation, it is not required. Depending on their employment situation, some CPAs may be hired by businesses or other organizations specifically for handling the finances of the company. Those practicing in these circumstances solely return taxes and monies to the IRS and/or state governments for their employer and not compensation from the public.

Enrolled Agent

Those who have earned the title of Enrolled Agent have been federally authorized to practice taxes and accounting. These individuals have successfully passed the three-part Special Enrollment Examination focusing on individuals, businesses, and practices/procedures. These individuals can also represent clients in tax court upon completion of an additional exam.

Come see the experts at Bloch, Rothman, and Associates who can answer any questions regarding individual or business income taxes and assist with a variety of bookkeeping options. A full detailed review of your tax situation can be completed in addition to resolution issues and estate compilations. All services will be completed in a timely manner, depending on your restrictions and possible tax deadlines. Whether you need a simple explanation on a random tax form or are in need of a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.

Starting and owning a business often comes with multiple headaches and unprecedented stress from a number of variable factors. Ensuring you hire the correct people, surrounding yourself with a knowledgeable staff and good working environment is key.

Following the staffing of a business an owner/operator must also then ensure the company remains profitable while providing quality services or work, depending on the company type. Then comes paperwork and deadlines for payroll taxes, property taxes, licensing fees, and a number of other requirements in addition to focusing on production.

Often the task can be overwhelming, especially in the beginning and can lead to failure or a loss of funding due to mistakes and a need to spend when original record keeping and set deadlines could have avoided these mistakes.

Hiring a professional bookkeeping service can help alleviate these issues. In addition, having someone in your financial corner from the beginning can benefit both a company and the owner(s) in a variety of ways.

Seamless Tax Preparation

A lot of financial records need to be readily available for tax purposes. Instead of having to take precious time away from the business in order to gather all of the required information for complete tax preparation, the professional bookkeeping service provides a more streamlined transition.

By keeping accurate records throughout the duration of the year, especially if it transpires with inception of the company, all required information for tax purposes can be quickly acquired, and then figures can be appropriately applied where needed.

Fluid Record Keeping

Using one individual or group to keep the records ensures all entries made are similar and recalling where monies were spent or used when needed becomes easier. Instead of having to decipher the work of another person, or your own transcriptions and paperwork when not accurately kept, a professional bookkeeping service can always immediately decipher what entries were keyed in, when and why for any occasion.

Financial Advice

Further, having someone who can assist when needing information on the tax implications of a business adjustment while keeping track of all business related expenses and fixed assets is extremely important.

Immediate access to financial advice as opposed to searching for the answer or someone who can provide specific tax advice or financial determination is priceless.

Focus

Allowing someone else the responsibility gives the business owner time to focus on the other things important to maintaining a successful business. By not having to worry with constant tax payments, paperwork, bank statements, and the like productivity, procedures, and in turn, more profits become the focus. Read more about how having your focus can help and other benefits of professional accounting services.

Cost Effective

When needing tax advice, payroll, or an audit the price can increase significantly over time. Ensuring all of the company's records are kept in one place, by one organization can drastically reduce the amount of time spent either preparing a tax return, ledger list, or anything else needed from the business owner.

In turn, while paying for professional services may initially seem to be an unnecessary expense, it quickly pays for itself in no time for the above reasons in addition to the reduced stress level when someone else is taking care of the finances for you.

The experts at Bloch, Rothman, and Associates can answer any questions regarding individual or business income taxes and assist with a variety of bookkeeping options. A full detailed review of your tax situation can be completed in addition to resolution issues and estate compilations. All services will be completed in a timely manner, depending on your restrictions and possible tax deadlines. Whether you need a simple explanation on a random tax form or are in need of a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.

For a majority of American college students must take out student loans in order to pay for their education. In fact, the average amount of student loan debt a student graduates with is close to $40,000. For those who fear college because of debt, there are options. From browsing tuition rates to getting scholarships, there are ways to limit the amount of student loans to take out. Learn more about student loans, the Free Application for Federal Student Aid (FAFSA), types of student loans, and about paying them back from your local tax specialist in Denver.

Intro to Student Loans and FAFSA

Student loans are options for those who would like to go to college but do not have the financial capabilities to do so. To get started with the student loan process, students will fill out a FAFSA. This will determine the amount of money a student can receive for the upcoming school year. Prior to each school year, a new FAFSA will have to be filled out. To fill it out, students and applicable parents just need to have previous tax returns ready. The FAFSA will also let the student know if they qualified for any state or federal aid—this is the best way to go as free money that does not have to be paid back! To get started with the FAFSA, visit the U.S. Department of Education’s page about applying for aid.

Types of Student Loans

When it comes to top types of student loans, there are two: federal and private. Federal loans are provided by the U.S. government, while private loans are by a lender—similar to if you were to get a loan at a bank. Ideally, many students opt for premier federal loans as they have more benefits such as fixed interest rates. Within federal loans, they can either be subsidized or unsubsidized. Subsidized loans are available to students to are able to provide financial need through filling out the FAFSA. With this type of loan, the government will pay the interest too as long as the student meets certain requirements. Anyone can get an unsubsidized loan and the school the student plans to attend will note how much is needed based off their tuition rates. Students are responsible for paying back the interest on these loans.

Paying Back

Students do not have to begin paying back their student loans until after they graduate. On average, there is a six-month grace period between graduating from college and having to pay back loans. This gives the student time to find a job. It is best to talk to the company the student loans are through to see what the grace period time is. Once you are paying loans back, it is crucial to pay them on time as late student loan payments can severely damage the quality of one’s credit. For students who experience a major life event and are unable to pay your loans, you can put in a request for deferment. If approved, you will temporarily stop making your payments.

Whether you have questions about your student loans, or need to know what to do when tax season arrives, Bloch, Rothman and Associates if your premier accountant. As your go-to, we will help make sure you are set with your student loans when tax season comes around. Be sure to read more about filing your Denver tax return as a student and call us at 303-321-7160 to get started.

Every year individuals receive certain statements and paperwork vital to individual or business income tax preparation and unknowingly disregard the importance of such items. While the general public is familiar with the disbursement of W-2 forms for employee wages, their release typically coincides with the beginning of tax season.

However, for small businesses and corporations the tax season is year long in regards to 941 and other forms specific to the state of the business or federal implications. Correctly monitoring these forms and clean record keeping are essential in making sure both your personal and business tax returns can and will be filed correctly.

Following are some important forms coupled with a more detailed look into what each entails for filing purposes. Also of note are some supporting documents or records which can be easily monitored during the year in order for a smooth transition to the tax form when applicable.

1040 Series

First, the actual tax form filled out by an individual or couple filing jointly is registered on one of a series of 1040 forms for the Internal Revenue Service (IRS). The regular 1040 is a long form typically used for more detailed returns or those individuals showing capital gains/losses or self-employment income.

The 1040A is a shorter form requiring less detail and typically no capital gains/losses. A 1040EZ form can be completed if filing individually or jointly with no dependents with usually only a W-2 income verification.

A few other 1040 tax forms exist in the series for non-resident aliens of the United States.

W-2

Required by the IRS, employers must report all employees earnings and taxes withheld both for the applicable state and federal government. The W-2 form is used to complete this information and relay it to both the IRS and individual employees.

1099

Commonly referred to as informational returns the 1099 series is used to display income coming from various sources other than the primary employment. Whether an individual is an independent contractor, the beneficiary of dividends, or subject to interest income a 1099 form will be utilized.

941

Small businesses file the 941 form quarterly as essentially one of four smaller tax returns during the year. These forms show wages, adjustments, and the amount of taxes paid for employees during the quarter.

Some businesses file and submit these funds as payroll is completed or they can be settled when the 941 is due.

The experts at Bloch, Rothman, and Associates can answer any questions regarding individual or business income taxes and assist with a variety of bookkeeping options. A full detailed review of your tax situation can be completed in addition to resolution issues and estate compilations. All services will be completed in a timely manner, depending on your restrictions and possible tax deadlines. Whether you need a simple explanation on a random tax form or are in need of a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.

Suddenly your cell phone rings with an unidentifiable number or “No Caller ID” memo available. Curious you hesitantly answer, “Hello”. “Yes, this is John Doe with the Internal Revenue Service, badge number 123456789, trying to reach [enter your name here]. Immediately, your stomach feels queasy and all thoughts should be focused on a tax specialist who can assist you but instead you’re more worried about what comes next.

The individual on the other end of the line goes on to list your physical address, social security number, birth date and other vitally important personal information. Then he or she discloses the reasoning behind the phone call - your latest tax return has been audited and you owe “X” amount to rectify the mistakes that were made.

In order to avoid prosecution, jail time, a negative effect on your credit, and/or further legal action some monies must be paid immediately. These funds can be submitted by check or electronic funds transfer and the individual is more than willing to assist in processing the request.

Unfortunately, this situation occurs far too often and many times elderly individuals are targeted. Those who may be more susceptible in falling for the false scheme and willing to hand over funds without further questioning. Do not let you or your loved ones fall victim to a similar scam.

First, the Internal Revenue Service (IRS) will never contact you initially via telephone. If an actual audit or request for payment is going to occur it will first be instituted with a letter via the US Mail service. You may then contact the IRS leading to a subsequent conversations but the initial contact will never occur by phone.

Further, individuals can take the following steps in order to combat identity theft as recommended by the U.S. government.

• “Secure your social security number (SSN). Don’t carry your social security card in your wallet or write your number on your checks. Only give out your SSN when absolutely necessary.
• Don’t respond to unsolicited requests for personal information (your name, birthdate, social security number, or bank account number) by phone, mail, or online.
• Watch out for “shoulder surfers.” Shield the keypad when typing your passwords on computers and at ATMs.
• Collect mail promptly. Ask the post office to put your mail on hold when you are away from home for several days.
• Pay attention to your billing cycles. If bills or financial statements are late, contact the sender.
• Review your receipts. Promptly compare receipts with account statements. Watch for unauthorized transactions.
• Shred receipts, credit offers, account statements, and expired cards, to prevent “dumpster divers” from getting your personal information.
• Store personal information in a safe place at home and at work.
• Install firewalls and virus-detection software on your home computer.
• Create complex passwords that identity thieves cannot guess easily. Change your passwords if a company that you do business with has a breach of its databases
• Order your credit report once a year and review to be certain that it doesn't include accounts that you have not opened. Check it more frequently if you suspect someone has gained access to your account information.”

The experts at Bloch, Rothman, and Associates can answer any questions regarding taxes, possible IRS scams, and assist with a variety of bookkeeping options. A full detailed review of your tax situation can be completed in addition to resolution issues and estate compilations. All services will be completed in a timely manner, depending on your restrictions and possible tax deadlines. Whether you fear to be the victim of an IRS replica scam or are in need of a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.