Two of the most noteworthy days on the American calendar are December 25 and April 15 when it comes to Income Tax Forms. The initial one marks the anxiously awaited conclusion of a wonderful season of celebration, gift-giving, and all-around benevolence. For many people, the second date—the day we must file our income tax returns—is a day filled with dread, stress, wrath, and anxiety. Nobody enjoys tax season, although about three out of every four filers receive a tax refund. There are ways to lessen the chaos and make it simpler to get through tax season, including using tax return software. How to Complete Your Income Tax Form Less Anxiously The secret to a good, stress-free outcome, especially when you do your taxes yourself or for your company. It is frustrating and time-consuming to try to make sense of a rat’s nest of paper receipts, canceled checks, brokerage statements, and other random pieces of information. Additionally, it raises the likelihood that you may calculate tax liability erroneously. You can face a tax audit and more fines if you pay too little. Paying too much is equivalent to donating to the government. By using these suggestions, you can prevent such issues. Gather Relevant Income & Expense Data Employers, suppliers, and financial institutions compile and send numerous tax forms and information necessary for your file every year around the end of January. To sort and segregate the data into one of the following categories, create a series of files, whether it’s a massive multi-pocket accordion file, a collection of substantial manila envelopes, or a digital filing system on your hard drive: Individual Details Your legal name, your spouse’s legal name, and the legal names of every dependent are all included in this information. Additionally, you must set their dates of birth and Social Security numbers. Income Typical forms include W-2s from employers, 1099s for extra sources of income, including self-employment, investments, and payouts from retirement accounts, and K-1s for any partnerships in which you have a stake. Keep your security transactions in a separate folder so you can easily calculate holding periods from the buy and sell dates to make sure you qualify for capital gains treatment whenever possible. Personal Costs (Deductions) Vendor contributions to your IRA and health savings account will be reported on Forms 5498 and 1098, respectively. However, most of the data proving permissible tax deductions, including company expenses, must be gathered from other financial records, like check registers, canceled checks, bank statements, and credit card statements. Download and print summaries of each credit card’s transactions from the previous year, then go through each one to see whether any of them might be deductible. Underline the transactions that might impact my filing so they are easy to find later. For canceled checks, a similar culling procedure can be used. Commercial Information You must keep your business revenue and cost items distinct from your personal information whether you run a small business, work as a freelancer, or earn additional side income. For a business, some expenses are deductible; for a personal filer, they are not. Review Schedule C of Form 1040 if you have any concerns regarding the kind of data to save. Fund IRAs and SEPs Up To The Permitted Limits The deadline for contributions is December 31 if you participate in an employer-sponsored qualifying retirement plan, like an individual 401(k) plan or 403(b) retirement plan. The IRA gift cutoff remains April 15, though. Suppose all or a portion of your income is from self-employment. In that case, you have until the filing deadline for your tax return, including extensions, to open a simplified employee pension (SEP) IRA and contribute up to 25% of that income. It should be simple to decide if you have the option of choosing between paying income taxes and saving for retirement. Automate or Contract Out Tax Preparation and Filing Although the IRS has made an effort to streamline tax forms and lessen the time and complexity of completing a tax return, it is still a difficult chore that is frequently stressful since it must be done just once a year. The good news is that organizations provide tax pro software packages to assist filers in completing the work swiftly and reasonably priced. Even free tax preparation software is available from the IRS to taxpayers with an adjusted gross income of $72,000 or less. Check your 2018 tax return for your adjusted gross income, which is reported on line 82 of the 2019 Form 1040, to see if you qualify for the free software. The IRS offers free fillable forms for electronic filing for people with earnings over $72,000. These forms only provide the most basic instructions; therefore, you must be familiar with tax preparation procedures. Most filing tools let you keep track of any refunds that may be owed and choose your preferred payment option, such as direct deposit, paper check, or keeping the refund and using it for the subsequent tax year. Conclusion The best professional tax software guides you through intricate questions to confirm quantities and the proper tax treatments. Take into account the income, the complexity of the return, any odd occurrences that significantly affect income or expenses, and anxiety over a tax audit when preparing your employee’s tax documents. Managing taxes may be difficult for anyone, even a seasoned tax preparer. Our best professional tax software might make things easier for you if you’re seeking creative ways to expedite the tax preparation procedure. Call us at 1.800.504.5170 to learn how we can ensure your tax business is growing.

Did you know that by making a few changes to your workflow, you can reduce the amount of time you spend on administrative tasks during tax season better? This will allow you to spend more time preparing returns and less time managing your office! To summarize, some changes you can make include: Automation Client Follow-Up Going Paperless Going Virtual with a Software for Tax Preparers Website Optimization Automation The beauty of using electronic workflows is that you can automate your computations ahead of time! Excel allows users to set formulas in each cell to arrive at the correct result depending on the values placed. Thus, all you need to do is input your earnings for a particular month or quarter; then, the formula will automatically calculate it for you! Amazing! You can also set up electronic reminders through your email or computer calendar, so it automatically updates you on whose taxes you need to prioritize. Client Follow-Up One of the best ways to increase returning clients and maximize profits during tax season is to follow up with former clients. However, this can be very time-consuming, especially if you have to track who has and hasn’t returned this year and send reminders. This is also why it’s better to automate client reminders so you can track them electronically from the moment you power on your device! Going Paperless Analog interrupts, or paper-based workflows, are a considerable time black hole for businesses. They’re inefficient and can interrupt productivity. Plus, if you lose track of them, your official records can go missing! However, filing, organizing, and ensuring client security are much easier when you have a paperless document management system! You can start with Microsoft Office or Google Docs to get a feel for this style before transitioning to something more permanent, like software for tax preparers. Going Virtual Many clients, especially younger ones who are used to the convenience of online filing, will be happy to avoid an in-person meeting and send you their documents electronically. You can communicate with them through various messaging or social media apps like: Facebook Messenger Gmail (or any email app) Instagram Slack Telegram Viber Zoom Through any of these apps, clients can take pictures of their records and send them to you securely through the app. They’ll get automatic updates when you start and finish their return, and the messaging feature lets you answer any questions quickly. Clients love how easy it is to file and view documents this way since they occur in real-time. Website Optimization We separated this tip from the fourth because you should already have an up-and-running website before social media accounts! This is your central virtual real estate where customers can find you, especially if they’re leads! Having a good website makes it easier for clients to see you and get the answers to their questions. You can also embed scheduling software so clients can automatically schedule appointments with you. Use PNG files for photos to maximize quality and size (they’re not large) and also have content like tax-related articles to boost your SEO! Need All These in One Go? Get a Software for Tax Preparers Now If you want to consolidate all these workflows in one platform, get in touch with Keystone Tax Solutions today! We create software for tax preparers so you can work with clients seamlessly and efficiently even before the taxman comes a-knockin’! Check out our solutions on our website!

The American Rescue Plan Act (ARPA) has already delayed the tax filing deadline to May 17, but what else should tax professionals know about the bill? The American Rescue Plan of 2021 is summarized below and how it may affect you, your clients, and your tax return next year. Continue reading to learn more about ARPA and professional tax preparers software. What Resulted from the American Rescue Plan? The American Rescue Plan was formed to provide financial assistance to families and people while recovering the economy from the COVID-19 pandemic’s effects. Much of the $1.9 trillion bill’s financing went directly to states, counties, and other local governments or went toward expanding existing programs in education, food aid, healthcare, and other social services. The ARPA’s parts relating to direct financial aid, such as unemployment, stimulus payments, tax credits, and the PPP, are the ones that have the largest impact on your clients. Unemployment Benefits Increased The ARPA extended many of the increased unemployment benefits granted in the CARES Act. The ARPA, in particular: Extends the $300 weekly payment until September 6, 2021 (Though many states have now chosen not to offer this additional benefit). Extends Pandemic Unemployment Assistance (which allows independent contractors, part-time workers, and other workers who would not normally qualify for unemployment insurance to receive benefits) and Pandemic Emergency Unemployment Compensation (which allows those who have already used standard unemployment benefits to continue receiving benefits) until September 6, 2021. (It increases a person’s eligibility for PUA payments from 50 to 79 weeks and PEUC benefits from 24 to 53 weeks.) Provides a tax credit for certain unemployment benefits received in 2020. Unemployment payments up to $10,200 are not taxable for persons with an annual income of less than $150,000. The Child Tax Credit The Child Tax Credit saw considerable adjustments as a result of the ARPA. However, most of these modifications are only temporary and will expire in 2021. Families will receive a fully refundable $3,000 credit for children ages 6-17 and $3,600 for children ages 0-5. (The old CTC gave each child a $2,000 tax credit, of which only $1,400 was refundable.) The EITC (Earned Income Tax Credit) For your clients without dependents, the maximum Earned Income Tax Credit (EITC) will rise from $540 to around $1,500. Furthermore, the EITC income level will be raised from around $16,000 to at least $21,000, and age limits will be temporarily lifted. If you need help preparing EITCs, you can use tax preparer software. The Child and Dependent Care Credit The Child and Dependent Care Credit enhanced 35% to 50% of qualified child and dependent care expenses. A credit of up to $8,000 per child and $16,000 is available to families. For the tax year 2021, the credit is also refundable. The FFCRA and Paid Leave Credits The Families First Coronavirus Response Act (FFCRA) was extended by the American Rescue Plan until September 30, 2021. The FFCRA, on the other hand, is no longer required. The FFCRA previously required employers to provide paid sick, and family leaves to employees who had COVID-19 or cared for a COVID-19 family member. Employers were entitled to claim these expenses as refundable tax credits. Employers are no longer required to give this paid time off, but if they do, they can still collect FFCRA Paid Leave Credits for any qualifying time off taken before November 20, 2021. Employee Retention Credits Employee Retention Tax Credits for Small Enterprises were also extended by the ARPA until December 2021, motivating and making it simpler for small businesses to retain staff. The Paycheck Protection Program The Paycheck Protection Program received additional funds from the American Rescue Plan, creating a second application period that closed on May 31. Payments for Economic Impact The third phase of economic impact payments of $1,400 per person was included in the ARPA for persons with an AGI of less than $75,000. Dependents above the age of 17 were also eligible to receive a payout, unlike the previous two stimulus checks. Conclusion The American Rescue Plan Act, which Congress passed and which President Biden is anticipated to sign on March 12, will benefit tens of millions of people, alleviate high levels of suffering, assist school districts in addressing student learning loss, and strengthen the economy. If you’re having difficulty preparing taxes, just like the ARPA, the best professional tax software is here to lessen your load and ease the process. For tax preparers, Keystone Tax Solutions offers the best professional tax software to boost accuracy and simplify the process. For a free demo, contact us today!

When the tax season kicked off this year, the IRS sent out a helpful piece of information to those who received the Additional Child Tax Credit. This is the IRS Letter 6419. It’s designed to help you report your Child Tax Credit for the current tax year, something you’re more likely to need if you have a lot of dependents. Not everyone seems to be familiar with this IRS Letter 6419, however. For this reason, many taxpayers are surprised to find out they can’t claim the Child Tax Credit on their tax returns. They might even have to go through the trouble of filing an amended return. In this guide, we’ll tell you all you need to know about IRS Letter 6419 and answer some of the most common questions taxpayers have about this important document. What is a Letter 6419? Basically, a Letter 6419 is an informational notice that the IRS sends taxpayers. It explains what is known as the Additional Child Tax Credit. It’s a means-tested credit that can help you lower your tax bill. If you qualify for the credit, you could get between $1,000 and $1,400. This amount is applicable per dependent, and it is refundable – meaning you get the money even if you don’t pay any income tax for the year. You probably received this IRS Letter 6419 if you reported an income tax liability of $3,000 or more. If so, the IRS sends you a Letter 6419. It informs you of the amount of additional Child Tax Credit you can claim. Letter 6419 is pretty straightforward and shouldn’t be confusing. You’ll get an estimate of your Child Tax Credit and discover how much you can get back through the Additional Child Tax Credit. Who Should Use the Letter 6419? You should look at IRS Letter 6419 if you have more than one dependent and you’re eligible for the Additional Child Tax Credit. This is a credit to help you offset the cost of raising your children. If you meet the eligibility requirements, which we will go over in a moment, it can bring down your tax liability. If you file a joint tax return with your spouse, the IRS will send both of you a copy of IRS Letter 6419. One document is good enough to cover both spouses. In fact, you don’t need to request additional copies of IRS Letter 6419. It’s sent to you automatically. What Happens if You Didn’t Get Letter 6419 or Lost It? If you don’t get the IRS Letter , you can contact the IRS and request a copy. You should make this request as soon as possible to ensure you file your return on time. If you already filed your taxes, however, you can file an amended return instead. You can also use the CTC Update Portal of the IRS to check your records. Conclusion The IRS Letter 6419 is a concise and straightforward document. It explains the Additional Child Tax Credit to you so you can get your money back. If you qualified for the tax credit and got this IRS Letter , you should go ahead and calculate your refund or tax liability. Keystone Tax Solutions is here to help you make better sense of your taxes. As the leader in the professional tax preparation software industry, we are focused on developing intuitive tools for accountants and tax professionals. If you want to get the best tax preparation advice and tools for your career and business, Keystone Tax Solutions has what you need. Contact us today to get started!

A tax client strategy niche is a group of people with a shared interest or need. When you focus on a niche, you’re able to better serve your clients because you understand their unique needs. This, in turn, makes it easier to market your business in the long run. That said, below are just a few reasons why you must develop a good niche tax client strategy. 1. Your Clients May Prefer Specialists Instead of Generalists By becoming an expert in a few areas of tax law, you can provide more value to your clients and become more successful in your career. Clients who know you are knowledgeable about their tax needs are more likely to trust you and use your services. 2. You Will Be Able to Establish a Stronger Marketing Strategy Small businesses need to focus their marketing efforts on speaking to the specific needs of their target consumers. This will make the marketing more effective and are likely to result in sales. Individuals seeking tax-related assistance will generally prefer to work with someone with specific expertise in the area they need help with rather than someone with just a general knowledge of it. A specific focus in an area can help ensure that individuals get the most accurate and helpful information possible. 3. You May Reach More Remote Clients Narrowing your focus to a specific niche allows you to be the go-to expert for that particular type of client, making it easier for them to find you. As a result, you can end up with more clients overall, even though you’re only catering to a specific group. This means that your sole focus will likely land you clients from all over the world, not just from your local area. 4. You May Be Able to Raise Your Rates If you offer a service that is in high demand, you can charge more for it. This is because people are willing to pay more for a service that they need in the nick of time. When you are able to manage the difficult or confusing parts of your client’s taxes, they will be more than happy to pay extra for the assurance. 5. You Can Become an Expert in a Specific Area By focusing on a specific niche, you can become an expert in that area. This will make it easier for you to attract clients, as they will know that you are an expert on the topic and can help them with their needs. When potential clients see that you are well-versed in your field, they will be more likely to trust your advice and work more with you. 6. You Can Earn More Money When you become an expert in your field, you can earn more money than if you were just a generalist. This is because people are willing to pay more for services that they know are quality and from a reliable source. When potential clients see that you have experience and expertise in what you do, they will be more likely to hire you often and work with you on their taxes moving forward. Conclusion There are a number of compelling reasons to develop a niche tax client strategy. First, by focusing on a specific niche, advisors can develop greater expertise in that area and provide more valuable services to their clients. Additionally, targeting a niche allows advisors to build strong relationships with clients in that industry, which can lead to more referrals and increased business. Finally, developing a niche tax strategy can help advisors stay ahead of the curve and stay up-to-date on the latest tax laws and regulations that impact their clients. If you are looking for the best professional tax software in the market today, look no further than our innovative platform here at Keystone Tax Solutions. Our software has a wide range of features that are sure to make your tax preparations a breeze. Call us today for more information about our tax software and its other notable features.

Taxes come in multiple forms, and depending on your financial situation and professional obligations, you may be responsible to minimize different taxes throughout the year. We all know that taxes are due on April 15th, but that’s not the only tax Americans are on the hook for. Depending on your occupation, you may be responsible for paying taxes throughout the year, rather than once a year. In fact, there are seven types of taxes, each with its own characteristics, due dates, and distinct strategies to minimize them. 5 Different Types of Taxes You Should Know Since the idea of paying taxes might make you want to duck under a rock and not come out for six months, we’ve broken down these taxes for you and their associated due dates. Pay attention, because you don’t want to have to pay a fortune this April. 1. Income Taxes The first type of tax that you might be required to pay is income tax. Income taxes are due at the end of every year on your tax return. The amount of income tax you pay is based on the amount of yearly income you have received. here are the gross income limits for the 2021 tax year: Single: $12,550 ($14,250 if age 65 or older) Head of Household: $18,800 ($20,500 if age 65 or older) Qualifying Widow(er): $21,500 ($26,450 if age 65 or older) Married Filing Separately: $5 Married Filing Jointly: $25,100 ($26,450 if one spouse is age 65 or older; $27,800 if both spouses are age 65 or older) Contributing to a retirement plan, checking for flexible spending accounts at work, or claiming work deductions are a few ways to reduce your income tax. 2. Excise Taxes The second type of tax that you may be responsible for paying throughout the year is an excise tax. Excise taxes are the fees that you pay for various items, such as alcohol, tobacco, or motor vehicles. These taxes usually only apply to certain products, businesses, or activities. For example, the sale of tobacco is subject to an excise tax, while the sale of cereal is not. Keep in mind that excise taxes cannot be included as an itemized deduction for your federal tax return. 3. Sales Tax The third type of tax that you’ll need to keep track of throughout the year is a sales tax, which is the tax you’ll pay when you purchase an item from a store or online. Sales taxes vary from state to state, so you’ll need to be aware of the amount of sales tax your state charges, as well as the amount of sales tax the company you are purchasing from charges. Due to the fact that some states like Alaska, Delaware, Montana, Oregon, and New Hampshire do not impose a sales tax, you’ll need to be aware of any taxes your employer is deducting from your paychecks. 4. Property Taxes The fourth type of tax you’ll need to keep an eye on throughout the year is property tax. Property taxes are the taxes you’ll pay on your home or other real estates. You can cut down your property taxes by reducing home improvement projects, exploring neighboring home values, or checking whether you qualify for tax exemptions. 5. Estate Taxes The fifth type of tax you’ll want to be aware of is estate tax. Estate taxes are applied to a deceased person’s assets and are due after the person’s death. The estate tax is applied to the transfer of assets over a certain amount, and they are due nine months following the individual’s death. If you are caring for an aging parent, it’s important to know the estate tax implications as they apply to your family. Making charitable gifts and setting up marital trusts are tried-and-true ways of lowering your estate taxes. The Bottom Line: Understanding Minimize Different Taxes You Owe Now that you know about all of the different types of taxes you may be responsible for paying, you can take steps to minimize them. We’re here to make your life easier, and we believe in giving you the tools you need to manage your finances and make smart choices. How Can We Help? Dealing with taxes can be challenging for anyone, even as an expert tax preparer. If you’re looking for innovative solutions that can streamline your tax preparation process, our professional tax software for CPAs can help simplify matters for you. Our affordable technology can empower tax preparers and help you start a tax business with no EFIN, so get in touch with us today at 1.800.504.5170 to see how we can ensure your tax business is booming.

Taxes are a bit complicated to resolve, and most adults need to file taxes. As a result, many people hire professional tax preparer to help them with the problem. That being said, they are one of the most in-demand personnel nowadays, with people clamoring to get help as much as they can with their taxes. This is the perfect opportunity for you to become one yourself, but before you can even qualify as a certified tax preparer, you will need to develop a couple of skills. Below are just a few examples. 1. Multitasking Capabilities This is a must-have ability to become a tax preparer. Just like in any other occupation, you will have to deal with several tasks at the same time. This means that you need to be able to multitask before you can do this job. Otherwise, you might not be able to cope with the various tasks you will have to tackle on a daily basis. 2. Math Skills This is another skill that you will need to have. As a tax preparer, you will have to deal with various mathematical issues, including taxes, among others. There will also be times when you will be required to do some sort of calculations. Nevertheless, if you are skilled in math, this will not pose a problem for you. 3. Writing Skills This is another very important skill that you will need to develop. After all, one of your main tasks as a tax preparer is to write. No matter what, you will have to write, whether it is a letter to your client or just a correction to a mistake that you may have made along the way. Writing will be one of your most important responsibilities. 4. Communication Skills Just like writing, you will also have to develop your communication skills. This is important, especially when you have to communicate with your clients according to their needs. You will also have to communicate with other employees, including your boss and other employees. Of course, you should also be able to communicate with your clients on the phone. 5. Computer Skills Most tax preparers are required to work with a computer. It is one of the most significant requirements for this job. Most tax preparers use software to organize their work, as well as to keep records. As a result, you will have to be adept at using a computer, or you might find your job very challenging. 6. Keen Attention to Detail One of the most important requirements in any occupation is attention to detail. If you are not equipped with it, you won’t be able to get the job done well. As a tax preparer, you will be required to understand even the smallest details about your clients. Whenever you have questions, you should be able to find answers immediately. Otherwise, you might have to find ways to avoid problems that may arise. Conclusion If you are looking for a stable job, then you might want to consider becoming a tax preparer. It is a suitable job opportunity for you, as long as you have the right skills. Remember that you also need to understand the details of your clients, including their financial records. You can develop these abilities to become a success, as long as you want it and you work hard for it. If you are looking for the best professional tax software in the industry today, look no further than our platform here at Keystone Tax Solutions. Our software brings you a variety of solutions that are sure to help your tax preparation tasks be easier than ever. Call us today for more information about our tax software and its various features.

Taxpayers are legally required to filing taxes on time. They have to file their taxes and pay the government any taxes they owe by April 18 of the following year. If they don’t, the government can charge them with a penalty, and depending on the amount of tax they owe; they could be charged with a misdemeanor. There are times when taxpayers can get a tax extension, like if they are serving in a combat zone or out of the country. In those cases, they have to file their taxes by the regular deadline and then have until two and a half months after leaving the combat zone or country to file. If it is almost the deadline and your client has only asked you to taxed dues, you might find these tax filing tips helpful: 1. Take Note of the Deadline Be mindful of the deadline. Remember that your submission should show the timestamp (if submitted online) or postmark (if submitted via mail) that your forms have reached the office before midnight of April 18, 2022. 2. Double-Check Deductions Make sure you take every deduction that you can claim for your client. If they qualify, include all their dependents, including their spouse and children. Check with the IRS website to know if you have missed any. 3. Make Sure They Contribute to IRA Make sure that your client has made their IRA contribution. Many IRA plans are available, but they must choose the right one. You can reduce your client’s tax bills if they contribute to a traditional IRA. Meanwhile, contributions to Roth IRAs are not tax-deductible. Still, it will allow you to max out the annual IRS limits on retirement savings. It will give your client’s money more time to grow. 4. Claim Their Unemployment Benefits If your client has been recently laid off or been out of work for a while, they can claim unemployment benefits as a tax deduction. If they do not make a claim, they will not be able to take advantage of this deduction in the future. Your client is eligible to receive unemployment benefits if: They were laid off They were fired because of misconduct They quit their job because of a labor dispute Note: They can get unemployment benefits for up to 26 weeks. 5. Gather All Important Documents Ensure you have all your client’s relevant tax documents, as some forms are necessary to claim certain deductions. 6. Make Sure There Are No Errors Revisit your prepared tax return to ensure there are no mistakes. Check if the numbers are correct and make sure the right tax forms have been filed. More importantly, make sure that your client has signed the documents. 7. Submit the Return You should submit the return before the deadline. If you are mailing it, you should make sure you have done it before the post office or drop it into the mailbox on or before April 17. Make sure to use the correct address to avoid any delay. Conclusion If your client has not made their taxes and you are running out of time, you should make every effort to complete their taxes as soon as possible. Submitting tax returns on time is essential to avoid any penalties. Start looking for the best tax software if you are ready to complete their tax forms fast. Keystone Tax Solutions is a leader in the professional tax software industry, offering 100% web-based tax software to help thousands of tax professionals in the US do their job. Our software gets you the best tax preparation tool and will surely give you more than you pay for. Contact us today to find out more.

One of the biggest challenges in opening a tax preparation service or any business is securing clients. In this particular business type, tax preparers must find individuals or business owners who will entrust their crucial information and money, which can be somewhat tricky. There is no shortcut to achieving success in this aspect, but new businesses can find clients by knowing the right steps to take. Here is how you can jumpstart your client search. Tip 1: Have a Business Card and Always Carry It Around Tax Preparation Service It is one thing to have business cards and another to always carry them with you. It may appear to be a minor thing, but it is a wise habit. Business cards contain essential information to introduce yourself to potential clients. They also serve as your calling cards when you are out and about. The problem with most business owners is that they have business cards but forget to actually use them. If you truly want to use your business cards, then ensure to place them in strategic places and have them on you at all times. Tip 2: Know Where Your Target Clients Are For Tax Preparation Service One of the biggest mistakes business owners make is not knowing where to find potential clients. And the biggest reason for this is that they do not really know who their target clients are. If you are a new tax preparer, your target customers may be individuals or small businesses. But once you establish a clientele, your business could expand, and your target clients may evolve into small companies, large corporations, and independent professionals. You cannot go on a random hunt for business owners. That would be quite a waste of your time and effort. You have to direct yourself on when and where you will approach your target clients to get their business. A good example is attending tax preparation seminars or other programs discussing business-related issues. You can find your potential clients here and start making connections. Tip 3: Start a Website Having a website is an excellent way to let people know about your business. It is also a good way to drive traffic and find potential clients. You may have the best service in the world, but if you do not have a website, people may not be able to know you even exist. However, it’s best to note that starting a website is not enough. You have to have a website that can sell your business. If you are a tax preparer, your website should help you showcase your services and experience. Tip 4: Encourage Referrals One of the best ways to get clients is through referrals, as you do not have to go out of your way to get them. Just focus on doing an excellent job so that clients will actively recommend you to their friends and family. Most tax preparers have a referral program to offer discounts on their services. For example, one can get 10% off on their bills if they refer a friend or colleague. Doing this is a win-win situation. You will get new clients, and your client will also get a discount on their tax preparation fees. Tip 5: Offer Free Consultations or Tax Preparation Service While you actually should not give out free consultations just for prospects, you should use them as opportunities to learn more about your target clients and their business. Use this opportunity to find out more about their business, the challenges they face, and their goals. This way, you will know more about your clients and can offer them better solutions. Conclusion These are just some ways you can find new clients for your tax preparation service. You will get more business and more income when you successfully do these steps. But remember to take things slow. Too many people get too excited about the goal that they fail to follow a marketing plan. If you follow the tips above, you will surely have more clients to propel your business forward. Make sure that you also offer excellent and efficient service by utilizing professional tax preparation software. Keystone Tax Solutions is a leader in the professional tax software industry, offering 100% web-based tax software to help thousands of tax professionals in the US do their job. In our software, you get more than what you pay for. Contact us today to find out more.

It is easy to overlook Common Tax Mistakes as a business owner since you have many obligations. However, it is time to focus on this vital, somewhat unpleasant topic now that tax season has arrived. You may think you’re aware of the issues you might encounter, but certain obstacles can trip up even the best-prepared business owner. Tax season mistakes are often at their peak when the business is new, or the company is undergoing a significant change. It’s important to know what to expect from your taxes. It is not a surprise that tax preparation is a significant part of the manager’s job. Business owners who are not prepared with the necessary knowledge and skills to correctly complete the tax forms are the most common tax mistakes. Here are the common tax mistakes to avoid as business owners: 1. Ignoring the Tax Process Even though tax preparations are a necessary part of the business owner’s job, many small business owners commit the mistake of not taking this process seriously. Consequently, they find themselves in a lot of trouble. This applies to both their personal and business tax returns. Business owners may be quick to claim expenses, but they fail to take the time to fill out the necessary forms. They even utterly neglected following up with the IRS to ensure that all taxes were paid. For a small business owner, it may be challenging to find the time to complete the tax-related paperwork and put in the effort to follow up with the IRS. However, this is necessary, and you must arrange your schedule to make it happen. Furthermore, many small business owners assume they don’t have to file taxes because their businesses are not making a profit. The truth is that any company that is earning income must file quarterly and annual tax returns. If you are not filing tax returns or paying taxes, you are not just avoiding the payment of taxes but also creating a lot of legal problems for yourself. 2. Omitting or Exaggerating Sales or Expenses The main objective of filling out a business tax form is to report taxable income. However, it is possible to overstate or understate sales or expenses. The IRS is generally suspicious of excessive deductions and will require additional documentation to prove those deductions. 3. Filing Late File your business tax return on time, even if you think that you don’t have enough income to be taxed. The penalty fees will be based on how many days late you file your tax return. In addition, if you are not filing your taxes promptly, the IRS will assume that you are intentionally neglecting your taxes and will trigger an audit. As a precautionary measure, you should consider seeking the assistance of an accountant before attempting to fill out any tax forms. They will ensure that you report all income, available deductions, and credits and that there are no mistakes. Conclusion Tax mistakes are common business tax issues that cost many business owners thousands of dollars. This can be not very comfortable and can affect your company’s credibility, profitability, and reputation. It will be a good idea to seek tax assistance from an experienced accountant or tax preparer to avoid the hassle and penalties. Avoid the traps noted above, whether you are a business owner who wants to do it alone or a professional accountant who handles the taxes of multiple enterprises. Consider using the best professional tax software available. With over 15 years of expertise, Keystone Tax Solution is the market leader in professional tax software. Thousands of tax professionals around the United States rely on our 100% web-based tax software to help them with their work. Right now, you can get a free demo.

Those with a four-year degree in accounting may think that their job involves nothing but accounting and number crunching in Tax Professionals. While this is true much of the time, there’s much more to it than that. An accountant’s day-to-day tasks probably focus on money, but many people don’t realize that accounting is more than just math. Most people overlook that a tax professional can be an invaluable resource beyond the numbers. Of course, a tax accountant has to know things like tax laws and legal aspects, but they can also provide advice on sales tax and VAT exemptions, as well as be a valuable resource in planning tips. However, another aspect that many people should consider is an accountant’s client service. A tax accountant will help companies and individuals to stand out from the competition by providing such advice. For this reason, they must always maintain healthy relationships to keep loyal clients Here are six tips tax professionals should follow to provide better client service: 1.   Be Available Even if a tax accountant doesn’t answer the phone every time it rings, they should be available to provide a certain level of service to their clients. This is especially true when it comes to accounting. Tax professionals face pressure to be available 24/7, and those that aren’t may not be taken seriously. Clients are likely to go elsewhere with the myriad options available if they can’t reach their tax professional. 2.   Be Familiar With Your Client’s Business A tax professional needs to know their client’s business from top to bottom. It’s also vital to keep up to date with changes in the industry. To be helpful and provide good customer service, tax professionals need to know what’s going on in the business world, especially in their client’s industry. 3.   Keep Your Clients Updated To maximize the relationships a tax professional has with their clients, it’s important to keep clients updated about what’s going on. This is especially true for taxes. Keeping clients in the loop about tax-related developments lets them know that tax professionals have their best interests at heart and will not let them down. It’s also an excellent way to make them feel like they are a part of the process, rather than just a number. 4.   Make Your Client’s Life Easier A tax professional can help clients make their lives easier, particularly when it comes to tax-related situations. When a tax professional is aware of a client’s financial situation, they can make suggestions that lead to better outcomes. People who do taxes will become more than just valuable resources if they develop ways to make their clients’ lives easier. 5.   Make Clients Feel Like a Priority You can make tax professionals more than just helpful resources in the long run if you keep your clients up to date and find ways to make your life easier. People want to feel like someone is looking out for them, and a tax accountant can provide that for anyone working within the financial sector. 6. Get the Best Professional Tax Software While some people may think that tax professionals are responsible for doing all the work, a good tax accountant will use the best tax software available for their clients. A good tax professional knows that picking the best tax software for their clients can go a long way toward helping them to be more efficient and effective. A tax pro software can help accountants stay on top of their client’s taxes, which can make them very effective in their role. Conclusion It’s important to remember that many people who don’t work in accounting or finance think tax experts are just people who do the math. There’s more to it than that, however. To be successful and make clients feel valued, tax professionals need to add value to their clients’ lives, not just money-making assets. Tax professionals can build a solid reputation, attract new clients, and grow their businesses by adhering to these tips. The benefits are sure to be plentiful. If you want to make work easier with the best professional tax software, Keystone Tax Solutions is a leading provider of affordable tax pro software and business management services with 15 years of experience helping thousands of tax professionals jumpstart their businesses through technology-driven tax software. We offer huge discounts and impeccable customer service to help you every step of the way. Contact us today!

Word-of-mouth marketing is regarded as the most trustworthy method of promotion due to this high level of trust. Today, personaly requesting referrals are trusted by 83% of consumers. Word-of-mouth advertising is the most efficient and cost-effective technique of marketing. You will lose leads if you do not request client referrals. As such, you must find the best method to ask for what you want without appearing aggressive or needy. If you employ these strategies, you will boost your chances of receiving referrals. Read on to discover these tips for requesting referrals from your clients. Mind Your Timing Before approaching a client for a referral, you should first build a rapport with them and gain their trust. If you move too quickly, people may believe you are looking for work or that you do not value them as a customer. Tax return preparers must be aware of seasonality. Prospective clients may have filed their taxes with a different preparer up until the conclusion of the tax season. Before the tax season begins, send an email to prior clients who found your services useful. Give them a tax season discount or gift card for every new customer they bring in. If you are new to the tax preparation industry, you might ask prior clients for referrals. Requesting for Referrals When you have good relationships with your clients, it is time to implement these referral techniques. Mix and match the information to determine what is true. – Do it Face-to-Face If a consumer is delighted with your work, you should urge them to tell their friends and family about it (or any of your other services). Give them your business card as a memento of your visit. Even if the cards are never distributed to the recipients, seeing them will serve as a reminder to contribute. – Send an Email A call to action can be included in ordinary emails; however, it is more productive to send a separate email requesting advice. To avoid coming out as unpleasant, express gratitude for the customer’s patronage and mention how much you’ve liked doing business with the individual in question. – Offer Incentives Customers may be enticed to promote your firm if you provide them incentives. When you offer a minuscule incentive to your clients’ contacts, they will believe they are assisting their close buddies. – Provide Materials Provide promotional items such as business cards, email templates, or social media posts to your consumers if you want them to help spread the word about your company. Generosity is proportionate to one’s level of effort. Mistakes to Avoid Avoid these pitfalls if you want your firm to thrive and preserve your consumers’ trust. Don’t try to obtain referrals from new customers. To begin, demonstrate both your work and your persona. Don’t beg. Be accurate and courteous, but avoid pestering clients. Don’t over-ask. Don’t try to insert your referrals at every chance encounter. Don’t make promises you can’t keep. The expense of word-of-mouth promotion is relatively inexpensive. Offering exceptionally steep discounts may increase referrals but decrease income. Conclusion Knowing how to request referrals appropriately is all a part of running a business and becoming successful. So, if you have never done this before, you should start doing it right now. By asking the right questions, referrals may aid in the income of your company or your business. Are you looking for the best professional tax software? Keystone Tax Solutions has over 15 years of experience helping tax professionals in the US start their own businesses, and thousands more obtain access to cheap technology-driven professional tax software. We offer quality and excellence with unrivaled rates and services to help you develop a profitable tax practice. Get a FREE demo today!

As a new tax preparer, it’s important to understand the different stages you need to go through when growing your business. By taking the time to plan and set goals, you can ensure that your business grows at a healthy pace and reaches its full potential. There are four main stages that a tax preparer business will go through as it grows: startup, growth, maturing, and decline. Each stage has its own challenges and opportunities that need to be taken into account in order to ensure the success of the business. Here are a few tips to help you get started. The Steps it Takes to Grow Your New Tax Preparer Business Step #1: Pre-Startup In the pre-startup phase, you may feel overwhelmed because there are many things to do, and it’s hard to know where to start. It’s important to have a plan and work on building a strong foundation so you can avoid failure and achieve the results you want. The main tasks for this stage are to first understand the problem that you are trying to solve and then to develop a plan or strategy for solving that problem. This will involve breaking the problem down into smaller pieces that you can then work on one at a time. Once you have a plan, you can then start to implement it and test it to see if it works. This means that you should build the basic infrastructure for your business in a timely and effective manner, but try not to get too bogged down in the details. Many entrepreneurs get stuck at this stage because they get caught up in the details and lose sight of the big picture. To that end, this is the stage when you need to find a way to make money so you can pay your bills and do the work required to get everything set up. Step #2: Early Startup You are beginning to make some money, but you are still very anxious about whether or not this will be successful. This can lead to feeling like you have to work hard all the time without seeing any results. In this phase, you have some clients, but you are still doing everything yourself. You have no team, no contractors, or maybe one VA or an administrative assistant. Before you start spending money on marketing, it’s important to have a basic framework in place. This will help you determine which marketing strategies are the most effective for your business. Once you have a framework in place, you can start testing different marketing strategies to see what works best for your company. Step #3: Late Startup The Late Startup phase is when you start to focus more on your business and delegate tasks to other people. You also start to create systems and processes to make things more efficient. In order to maintain a consistent income and see continued growth, you need to put systems in place. By creating systems, you can streamline your process and ensure that everything runs smoothly. This will allow you to focus on other aspects of your business and continue to see success. Step #4: Growth New Tax Preparer This is about you moving into more of a visionary or CEO role and scaling your business by growing your team, big time. If you want to be successful, you need to keep hiring talented people and learn how to manage them effectively. There is no one-size-fits-all solution when it comes to building a team, so you need to figure out what works best for you and your business. It’s all about taking the next steps to make a real difference in the world. This means moving away from a one-to-one model and into something that is much more sustainable and has the potential to make a lot more money. This will also have a greater impact on the world as a whole. The Bottom Line: Building Your New Tax Preparer Business from the Ground Up As a new tax preparer, you have the opportunity to build a thriving business from the ground up. However, before you can do that, you need to understand the ins and outs of the tax preparation industry and how to start and grow your business. The key to success in the tax preparation industry is hard work and dedication. With enough effort, you can build a thriving business to help you achieve your financial goals. How Can We Help? Dealing with taxes can be challenging for anyone, even an expert tax preparer. If you’re looking for innovative solutions that can streamline your tax preparation process, our professional tax software for CPAs can help simplify matters for you. Our affordable technology can empower tax preparers and help you start a tax business with no EFIN, so get in touch with us today at 1.800.504.5170 to see how we can ensure your tax business is booming.

The American Rescue Plan essentially modified Form 1099-K reporting requirements for third-party payment networks (such as Cash App), which previously had been based on credit and debit card payments. Now, it actively includes electronic payment transfers as well. These networks process payments and have exploded over the last several years. This means you’re going to have multiple clients that have Form 1099-Ks. It’s important to be consistently up-to-date on the way reporting requirement changes will affect 2022 taxes. Form 1099-K: A Review Every single payment received by way of payment settlement entities (PSEs) is detailed on a Form 1099-K. “Entities” includes payment credit cards like debit and credit cards, alongside payment networks from a third party, such as Venmo. The form can be sent to businesses (using their Tax Identification Number or TIN) and individuals (using their Social Security number). Clients should get a separate Form 1099-K from every PSE where the client’s number of transactions or gross payments went beyond the reporting threshold. Changes in Form 1099-K For the Year 2022 The most notable 1099-K requirement change involves the de minimis threshold for payment networks that are third-party. During tax years prior to 2022, networks only had to send a Form 1099-K if a business or individual had over 200 transactions and got more than $20,000 in gross payments. For this year onwards, however, third-party payment networks now have to send out 1099-Ks to anyone who has any number of transactions alongside over $600 in gross payments. Given the major downturn in the reporting threshold, filing 2022 tax returns will involve a lot more Form 1099-Ks coming in. The new laws also attempt to ensure more accurate tax returns from smaller businesses or individual taxpayers who were not previously subject to 1099-K reporting requirements. It should be noted that the changes apply to third-party payment networks only. Card payment reporting requirements, on the other hand, are still the same. Payments that come from debit or credit cards have never been subject to a de minimis threshold. As a result, a Form 1099-K must be sent by PSEs to anyone and everyone that gets them. Individuals will need to file a Schedule C (Form 1040) while businesses should file Form 1065, 1120, or 1120S (depending on the structure of their business). Will 1099-Ks Be Sent Out To Clients for Personal Transactions? Personal transaction reports should not be a concern. If a client receives over $600 in reimbursements through an app like Cash App, for example, but it’s all from family and friends and linked to events such as eating out, don’t fret. That transaction and others like it are excluded from the reporting requirements. Clients should not be receivers of a 1099-K in that case. Typically, third-party payment networks are able to differentiate personal and business transactions based on short questionnaires asking if the transaction is for the service or good. Another solid basis often used for this is user agreements. Conclusion Form 1099-K is a crucial document that previously only covered debit and credit card payments. For 2022, it’s been updated to include third-party payment networks like Cash App and Venmo. It should be noted that personal transactions do not require 1099-Ks. Need the best professional tax software? Keystone Tax Solutions has you covered. We have professional tax software for tax preparers. Get in touch with us today!

Many of us know that changes to interest rates occur after significant tax reforms, but how do these changes occur? And what are the impacts on your clients? This post explores the complex relationship between tax policy and interest rates to help you understand. How Tax Policies Affect Interest Rates Economists often recognize the relationship between the federal budget and interest rates. When tax policies change, like lowering them, businesses and individuals typically have more disposable income. This encourages companies to spend more and causes individuals to borrow more, especially from banks. As a result, banks must compete for customers, increasing demand for loans and causing the interest rate to rise. If the reform bills lead to increased economic activity and a larger national deficit, the Federal Reserve may choose to raise interest rates. The Federal Reserve may also consider raising interest rates due to potential inflation caused by tax cuts and the likely inflation caused by the larger national deficit. Both of these examples are based on the premise that lower unemployment rates lead to increased wages, which leads to inflation. Other Factors That Affect Interest Rates While major tax reform will probably influence interest rates, it’s far from the only factor that affects them. Most of the time, higher rates result from an increase in inflation because lenders want to maintain their profit margins. Since recipients of loans must pay back more dollars due to inflation, lenders charge borrowers higher interest rates to make up for the difference. Since the supply and demand for credit have a strong influence over interest rates, the economy’s strength will also affect them. Typically, high-interest rates are a sign that the economy is doing well. How Interest Rates Affect Tax Policies No one knows how tax policies affect interest rates. Changes in interest rates due to new tax policies are relatively easy to spot. However, figuring out how current interest rates influence policymakers’ decisions is harder than you might expect because tax policies are influenced by the state of the larger economy and other political factors. Economists have said that sustained low-interest rates could significantly impact tax policy. These low rates have likely led to a change in preferences—instead of income taxes, people are paying more attention to their consumption taxes, i.e., sales tax. These effects on tax policy are theoretical and don’t occur immediately, unlike the immediate impact of tax policy on interest rates. However, there are also some short-term impacts on tax policy. Under a low-interest policy, fewer investors are willing to take on the risk of long-term investments. This can decrease the amount of capital available to businesses and lower competitiveness. Conclusion Tax policies have an immediate impact on interest rates. These changes can then have a lasting impact on the direction of tax policy because they influence the economy. And the direction of tax policy then changes the interest rates, which then changes tax policy, and so on. The federal budget is an immensely complex system that’s difficult to measure and predict. So, when it comes to interest rates and tax policy, we’re still trying to figure out how the different parts affect each other. Hopefully, this article will help you understand how tax policy and interest rates are related, but you’ll still have to do your own research to figure out how they affect your clients. Keystone Tax Solutions provides professional tax software for tax preparers who prepare taxes for other people. We are a professional tax software industry leader with more than 15 years of experience offering 100 percent web-based tax software while helping thousands of tax professionals start their own tax business and thousands more gain access to affordable technology-driven professional tax software. If you need software for tax preparers, get in touch with us now! Let us know how we can help.

Using any types of audits is important for tax preparers when it comes to investigation. It is a process that’s usually conducted by a government agency and designed to examine the tax returns of an individual, business, or organization. If you are working as a CPA or an accountant and are facing an IRS audit, then you need to have a good understanding of the process. Here are eleven different types of audits that may help you gain a better understanding of what you are up against. External Audits An external audit is done in order to ensure that various business operations are following the law. It is to ensure the accuracy of financial statements. External auditors typically verify that a business’ financial transactions have been processed correctly. They are focused on business practices and making sure that laws are not being broken. Internal Audits Internal audits are typically performed by the business itself. They are performed in order to ensure that the business is adhering to certain standards and laws. They are often used to comply with state regulations. Internal audits are also used to make sure that the company is following best practices and that employees are doing their jobs correctly. Performance Audits A performance audit is performed in order to examine the operations of a government agency. It is usually done in order to make sure that the agency is using tax money effectively, following the law, or using the maximum amount of tax breaks. Financial Statement Audits Financial statement audits are a standard form of an audit. A financial statement audit is the most common type of audit. Audits that are performed by an independent entity to verify that an individual or business’s financial statements are accurate, including the proper tracking of a company’s revenues, liabilities, and assets. Operational Audits An operational audit is a type of audit where the purpose is to examine an entity’s internal controls. An operational audit is done to ensure that an employee’s or company’s procedures are being carried out correctly. This type of audit is separate from the financial audit that’s required by law. Single Audits A single audit of the financial statements is also known as an audit of federal awards. This type of audit is designed to make sure that auditing requirements are met. It is a type of audit that’s completed by a single entity. Employee Benefit Plan Audits An employee benefit plan audit is a type of audit where the purpose is to examine a group health plan, pension plan, or other types of employee benefit plans. The audit is designed to make sure that the plan is being funded correctly and that the government is receiving its full amount of tax credits. Compliance Audits A compliance audit is a type of audit that’s performed after a major event occurs. For example, if your company is facing a merger, then you can have a compliance audit performed in order to make sure that all legal issues have been handled correctly. The audit is a way of making sure that all legal issues have been handled correctly. Information System Audits Information system audits are a type of audit that’s performed by an auditor who is examining a company’s information technology resources in order to ensure that the IT is being used correctly. This type of audit is mainly performed by the company itself, with assistance from the auditor. Forensic Audits A forensic audit is a type of audit where the intent is to uncover any fraud. It is meant to determine whether any financial misconduct or irregular behavior has occurred. Payroll Audits An internal payroll audit is a type of audit that’s performed by an individual who is examining the company’s payroll records. The audit is meant to make sure that the payroll records are accurate and that the company is following the U.S. Department of Labor (DOL) and IRS guidelines. Conclusion Navigating the tax code can be complicated if you don’t have the right tools and understanding. As a tax accountant, it’s your job to make sure that your clients are receiving the maximum amount of deductions and credits that are legally allowed. By having a working understanding of the tax code and the audit process, you can ensure that you can easily pass an audit and ultimately help your clients. Keystone Tax Solutions is the best professional tax software that will help you give your client peace of mind while gaining additional revenue through audit protection. Let us help you handle the stress of doing taxes and easily pass an audit. Contact us today to get started!

One of the main reasons people don’t start their own In-Demand Tax Service businesses is because they’re not confident they can sell their services. But you can’t just leave it up to chance whether or not you’ll get customers. There are ways to test your idea before fully launching your business. Create an In-Demand Tax Service with These Quick Tips 1 – Listen to Customer Complaints What do your customers say when they’re not happy with your services? How do they say it? If you’re great at what you do, it’s inevitable that you’ll receive some complaints. But if customers are taking the time to let you know what they don’t like, that’s a great sign of opportunity. If you hear something like “I wish I knew there was something else I could do to help myself with taxes,” or “I didn’t know I could do it myself,” or “I wish I had known there was an easier way to get my taxes done,” then you’ve heard customers say “Tell me more about this.” This is a great sign that your customers are looking for some extra help, and it may be an opportunity to expand your business. 2 – Research Your Competitors If you don’t know if your services are in demand, you can learn a lot from the competition. One of the best ways to learn is to go to a competitor’s website and look at the testimonials they have there. There are many people you can learn from, including those in your competitors’ testimonials. These can be people who have been successful or people who have not. What are they saying about the services you provide? If you were to tell your customer the same story, what would they say? These examples of success or failure will help you know how to better position your services. 3 – Ask Potential Customers The easiest way to test if a service is in demand is to ask potential customers. First, you’ll want to find people who are looking for your services and get their contact info. If you offer a service that helps people find and hire freelancers, for example, you might find people who need help in that area by going to freelance job sites online. You can also ask people on social media. Once you have contact info for your potential customers, send them a message. Tell them you will be offering a service in a particular area, and you’d like to get their thoughts on it. This can be done through email, over the phone, or in person. They will likely give you some valuable feedback on what they would like to see in your service, and it will help you know if there is demand for your product or service. Conclusion Starting your own tax business is something that you can do if you have the right plan. If you’re just not confident you have the right plan, but you know you have the right skills and services that would help people in this area, you may want to look elsewhere. Before you start your own tax business, you should learn how to sell your services, and you should listen to your customers to know if you’re offering what they need. If you are looking for the best professional tax software, start using Keystone Tax Solutions! Let us help you meet your clients’ needs today!

The tax season is always a busy time for tax preparation firms. In 2022, the challenges of tax season will be more of a hassle for many. The new tax laws and regulations will require tax preparers to be even more diligent in their work. Additionally, the increased use of technology in tax preparation may create new challenges for firms. Here is a rundown of the top issues confronting tax preparation firms: The Endless Tax Season as a Result of COVID Relief As the COVID-19 pandemic continues to wreak havoc on the economy, tax preparation firms are bracing for another tough tax season. The pandemic has caused widespread job losses and business closures, significantly decreasing tax revenues. The federal government has enacted relief measures, including stimulus payments and expanded unemployment benefits. While these measures have provided some relief to taxpayers, they have also created a significant burden for tax preparation firms. The increased complexity of the tax code as a result of the relief measures has made it difficult for firms to keep up with the latest changes. Collaboration with the IRS As the 2022 tax season approaches, tax preparation firms in the United States are preparing for potential changes in collaborating with the Internal Revenue Service (IRS). In recent years, the IRS has been working to modernize its systems and processes, and it has been increasingly focused on electronic filing and collaboration with tax preparation firms. In 2022, the IRS is expected to continue this trend, and tax preparation firms must be prepared to adapt. The e-Services platform is not yet fully operational, and the IRS has not released all of the information tax preparers will need. This lack of information has caused confusion and frustration for many tax preparers, and it is a significant challenge that tax preparation firms will need to address in 2022. The Importance of Tax Preparation Software As the 2022 tax season approaches, many Americans wonder whether they should use tax preparation software or hire a professional tax preparer. While both options have pros and cons, there are compelling reasons to use tax preparation software with assistance from a tax preparation firm. One of the most significant advantages of using tax preparation software is that it can help you maximize your deductions and minimize your tax liability. Tax preparation software can help you identify beliefs that you may not have been aware of, and it can also help you ensure that you are taking advantage of all the deductions and credits to which you are entitled. Another advantage of tax preparation software is that it can help you save time. These apps can automate many of the tasks of tax preparation, such as calculating your tax liability and preparing your tax return. This can save you significant time, which is especially valuable if you have a complex tax situation. Conclusion The challenges of tax season for tax preparation firm in the USA for 2022 are numerous. They include the need to comply with new IRS regulations, the challenge of preparing tax returns for a complex tax code, and the need to keep up with the latest changes in the tax code. In addition, tax preparation firms must also deal with the increased demand for their services during tax season. While the challenges of tax season may seem daunting, tax preparation firm can take steps to ensure a successful tax season. If you are looking for the best professional tax software, Keystone Tax Solutions is here to help. We are here to provide award-winning professional tax software to our clients at the most affordable prices in the industry, thanks to our purchasing power and relationships. Contact us today!

Tax software is easy to use, but it’s hard to choose between all the available software. Some software helps with state income returns, while others help with filing your federal tax return. It’s important to reflect on which program you need. In this follow-up article, we’re listing other questions that should also be considered before signing up for a tax software service: 6. How Much Tax Software Support Do You Need? Some tax prep software packages offer more support than others. When shopping around for tax software in its current form, you might want to look at whether or not there’s a free demo or free trial version to help you explore the software and make sure it’s right for you. In addition, most tax softwares offers email support; some offer phone support, and a few provide live chat support. More support options can be found on the websites of tax softwares products. It’s essential to choose a program that offers support convenient to you. 7. Does the Tax Software Have a Guarantee? Finding the right tax softwares can be a challenge. Some software products offer a money-back guarantee, but others don’t. Before choosing a tax package, it’s good to find out if the company offers a money-back guarantee. If the tax softwares makes an error, generally, you can get a refund. However, some companies may require you to use the software to file a tax return before you can get a refund. Different refund policies depend on the tax softwares company’s terms and conditions. 8. Do You Want to File Electronically? Some tax softwares programs file electronically while others don’t. The IRS and state governments don’t charge to file your taxes electronically. This is the easiest and safest way to file your taxes. Electronic filing comes in two ways: Electronic filing of federal returns Electronic filing of state returns Electronic filing of both federal and state returns is also referred to as e-filing. Some tax softwares programs will help you file a federal tax return electronically. These programs will also help you file a state tax return electronically. Many folks prefer to file federal and state returns electronically because it’s faster, easier, and more convenient. 9. Does Your Computer Meet the System Requirements? Before installing tax softwares on your system, you should make sure your computer has the proper hardware and operating system to run the software. Some tax softwares programs need a high-speed Internet connection to access the IRS and state tax systems. Most tax softwares programs come with system requirements that you need to follow before installing the program on your system. System requirements are usually listed in the tax software’s user guide. 10. Is the Software for the Correct Tax Year? Application dates on tax softwares packages are essential to be aware of. Many tax software packages are released in time for the next tax year, which means they’re out in early January. If you wait until the end of January to look for tax software, you may not find one right for you. It’s essential to find a tax softwares that allows you to file your taxes for the current tax year. Conclusion Finding the right tax softwares that fits your individual needs can be challenging, but it’s not impossible. Taking these questions into consideration will help you navigate through the sea of information that’s out there. Do you have any suggestions to help people find the right tax softwares? We’d love to hear from you. Keystone Tax Solutions provides professional tax softwares for tax preparers who prepare taxes for other people. We are a professional tax softwares industry leader with more than 15 years of experience offering 100 percent web-based tax softwares while helping thousands of tax professionals start their own tax business and thousands more gain access to affordable technology-driven professional tax softwares. If you need software for tax preparers, get in touch with us now! Let us know how we can help.

Taxes and Cryptocurrency has been gaining popularity in recent years, and with that popularity has come increased scrutiny from tax authorities. Cryptocurrency is still largely unregulated, and as such, there is no uniform approach to taxing it. This can create confusion for taxpayers, who may not be sure how to report their cryptocurrency transactions on their taxes. Given this, we thought it would be useful to put together a brief article on this subject. If this is something that you’re interested in learning more about, read on as we break down everything you need to know about cryptocurrency and taxes. What Is Cryptocurrency? A cryptocurrency is a type of digital or virtual currency that is secured by cryptography. Cryptography is a process of using codes to protect information from unauthorized access. Cryptocurrencies are decentralized. This means they are not subject to government interference or manipulation. Cryptocurrencies use various encryption algorithms and cryptographic techniques to secure their transactions. “Crypto” refers to the various encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve encryption, public-private key pairs, and hashing functions. How Is Cryptocurrency Taxed? While taxing cryptocurrency may seem complicated, it’s actually more simple than you think. Despite the IRS’s limited guidance around this, cryptocurrency can be taxed under two frameworks. Cryptocurrency is subject to capital gains taxes if it is bought and sold as an investment. If cryptocurrency is paid or received as income, it will be subject to regular income taxes. If someone buys cryptocurrency and doesn’t sell it or trade it for another cryptocurrency, they don’t need to report it for taxes. Also, if they transfer their cryptocurrency from one personal digital wallet to another, that’s not a taxable event. This means that if someone moves their cryptocurrency from one personal digital wallet to another, they don’t have to pay taxes on it. However, the exchange or platform they use might give them a Form 1099-B, which they need to keep track of to prove that the currency wasn’t sold for a profit or loss. When Is Cryptocurrency Taxable? When you exchange one cryptocurrency for another or sell cryptocurrency for regular currency, you are making a taxable event. This means that you will need to keep records of each exchange. For every taxable event, you should have a record of the cryptocurrency’s fair market value in U.S. dollars on that day. So, if you purchased one Bitcoin when it was valued at $25,000 and sold it when it was valued at $30,000, you would have a capital gain of $5,000. Take note that you have to subtract fees associated with the transactions. Keeping records shouldn’t be that difficult as most crypto exchanges will automatically keep records of these transactions, but if you use multiple platforms or personal virtual wallets, you will need to be more careful about keeping your own records. Conclusion We hope this article proves to be useful when it comes to helping you figure out how taxes work when it comes to cryptocurrency. While it may seem complicated at first, the information that we’ve laid out here should help you navigate this process. Feel free to refer back to this article if you need a quick refresher on this subject. If you’re looking for professional tax preparation software to streamline and optimize your processes, our products at Keystone Tax Solutions are just what you need. Get in touch with us to begin your free demo today!

Over the years, business Fraudulent Activities has happened more often. Why is this so? Well, while the advancement of technology has enabled businesses to fight back against these frauds better, it has also equipped scammers with tools to take their scamming efforts to the next level. As such, staying on top of the latest fraud trends and the like will enable you to keep your business safe from falling prey to such unfortunate events. That being said, what else can you do to help prevent fraud in your business apart from simply knowing the trend? Here are a few things you can do: 1. Know Your Team Members This is perhaps the most important thing you can do to prevent fraud in your company. Why? Because fraudsters often use the trust employees have in them to get access to your accounts. This can be a particularly easy feat if you do not know your team members well. Take the time to get to know your employees, look into their backgrounds to see what they are capable of, and check how honest they are. Having a background check on them will also help you know whether they can be trusted. Inquiring about their previous jobs is also a good way to ascertain whether they have something to hide. 2. Educate Your Employees This is perhaps the second most important thing you can do to prevent fraud in your company. Investing in proper training for your employees will allow them to understand the ways fraudsters operate and will arm them with the right skills to overcome such threats. 3. Look Into Third-Party Vendors Besides conducting a background check on your own employees, you should also do the same for your third-party vendors. This is because fraudsters often hide behind the guise of a third-party vendor to reach you and your employees. Having a background check on them will also allow you to ensure that they can be trusted. 4. Set Up Fraudulent Activities Detection Systems There are many Fraudulent Activities detection systems you can set up to help prevent your business from falling prey to scams. For example, having a system that can detect any suspicious activities in your accounts will help you ferret out scammers. These systems can also be useful in the prevention of employee and vendor fraud. 5. Implement a Security Policy This is another thing you can do to help prevent Fraudulent Activities in your business. Having or implementing a security policy for your business will allow you to ensure that only people who should be privy to information such as passwords and such are people who can be trusted. 6. Conduct Regular Audits It is important to conduct regular audits to make sure that all your employees are following procedures and policies. This will allow you to catch employees who are trying to commit Fraudulent Activities. It will also help you see if there are any holes in your security policy or other policies. 7. Keep an Eye on Your Accounts This is something you can do yourself. All you need to do is ensure that you regularly check your accounts. This can be done through regular sweeps of your accounts or by simply keeping an eye on the daily activities of your employees. If you notice something unusual, do not hesitate to get someone to help you check it. Conclusion Knowing the latest fraud trends and taking the necessary steps to prevent your business from falling prey to such frauds is a must. With this knowledge and the steps outlined above, you can keep your business from falling victim to scams. That being said, be wary of everything that you do and anyone you work with. It never hurts to double-check anything that catches your eye, as that might just reveal a sinister secret behind it! Keystone Tax Solutions offer professional tax software to help tax preparers carry out business better! Get in touch with us today and enjoy tax software that you can rely on!

Very few people can honestly say they look forward to virtual tax preparation. Many who attempt to handle their own business’ accounting soon realize that it’s so easy to drown in all the files and the numbers. This is one of the reasons tax preparation is a thriving industry. Many businesses are in need of reliable tax preparation services. Starting this type of business is certainly a good idea. But like all other businesses, it needs proper preparation for you to succeed in this industry. To help you out, experts behind the best professional tax software shares this quick guide on how you can start a tax preparation business: Obtain Necessary Licensing In the US, you will need to be licensed. Your virtual tax preparation business falls under the category of an accounting business. Therefore, an accountant’s license will do. In some states, you can get licensed to prepare taxes. However, you will need a certified public accountant’s (CPA) license. These licenses are available at the state level. Apart from licensing, you may need to be registered to prepare taxes. In that case, you need to go to the Internal Revenue Service (IRS) and register. Secure Your EFIN and PTIN You can only get an EFIN (Employment Identification Number) and PTIN (Preparer Tax Identification Number) when you are a registered tax preparer. Before registering, you will need to know if your state requires you to collect sales tax. If you need to collect sales tax, you will have to attend training. Apply for Business Insurance Having business insurance is not a requirement for tax preparation business. But, it will help you out in a lot of ways. You need to secure enough insurance to cover all your assets. You should also have liability insurance to cover the damages in case of an accident. Understand Your Lawful Standing Since tax preparation is not only a business but an industry, you need to understand your lawful standing. This is to make sure you are not taking advantage of the law. The IRS regulates tax preparation. As a tax preparer, you must abide by the law. Create a Business Plan You must always have a business plan in place. This is to make sure your tax preparation business is on the right track. Writing a business plan is a very simple process. You will need to include information like you are doing this business, what your target market is, how you will reach your target market and how you will increase profitability. Get the Best Tax Preparation Software Tax preparation software can turn your tax preparation business into a highly lucrative venture. And it helps to take care of the number crunching. This software can be used by both small and large businesses. This is the best way to help out businesses in need of reliable tax preparation services. Tax preparation software is the perfect solution if you are planning to start a tax preparation business. It helps to take care of high-end tax preparation tasks. It will lower your stress level and make tax preparation a hassle-free process. Build a Website Your website is your online marketing platform. You can use this opportunity to attract more customers to your business. You will also be able to establish a strong brand identity. This is important because you can use this identity to reach more customers. Conclusion Starting a tax preparation business is not easy. But with the right plan, you can make it happen. A professional tax preparation software can help you create the ideal tax preparation business. It guides you in preparing the right plan so that you can start your tax preparation business. Keystone Tax Solutions is the best professional tax software that you can use for your tax preparation business. Try our packages today!

A lot of small enterprises are run by families. If you prepare tax implications for small business clients, you should expect to come across a variety of family enterprises and assist them in navigating the tax ramifications of hiring relatives. This post will look at one of the most popular family businesses: two spouses working together and how the best professional tax software can help them. Here is the info to help them handle their taxes correctly, whether they’re business partners or employees—and where to find a professional tax preparers software. When Married Couples Run the Business Together When couples run a business together, the way tax implications are handled depends on their business structure and whether they file as a partnership or a qualified joint venture. Partnership In most cases, they will be considered partners, even if they have never signed a formal partnership agreement. They should file Form 1065 U.S. instead of Schedule C (Form 1040) and name one spouse as the sole proprietor. Partnership Income Return Note that partnership revenue is considered “pass-through” income, which means that the partnership will not pay income taxes. Instead, the revenue is distributed to each partner responsible for reporting and paying taxes. As a partnership, they must follow federal record-keeping rules for partnerships to ensure that each spouse receives the Medicare and Social Security benefits they are entitled to. However, if they wrongly filed as a sole proprietorship, only one spouse would receive credit for Medicare and Social Security taxes, resulting in substantially lesser Social Security payments for the other spouse when they retire. Spouses can choose to treat their business as a Qualified Joint Venture rather than a partnership in some situations. Qualified Joint Venture in Tax Implications A couple does not need to file as a partnership if they opt to be deemed a qualified joint venture, and both spouses will earn enough Medicare and Social Security tax credits. To be regarded as a qualified joint venture, it must meet the following criteria: If you’re looking for a unique way, a married couple who files a joint return is the only member. Both spouses have a material stake in the business or trade, and Both spouses choose not to be treated as a couple. The business must be co-owned and run by spouses rather than a state-law organization (such as a limited partnership or limited liability company). Both spouses are classified as sole owners for tax purposes in a qualified joint venture, and each must file their Schedule C for their part of the business’s income and losses. The spouses should not utilize the business’s EIN when filing individual taxes. Instead, each spouse should file under their own Social Security number, with the partnership’s EIN intact. It will only be used to file when the company does not meet the requirements of a qualified joint venture. When One Spouse Hires The Other The tax scenarios above apply if the couples are equal company partners, but what if one spouse manages the business and employs the other? The employed spouse will be considered virtually like any other employee for tax reasons. Their earnings are still subject to income tax and Medicaid/Social Security taxes. The business-owning spouse is still responsible for all payroll taxes, including the employer component of Medicaid and Social Security. Individuals hired by their spouses have one key tax advantage: their wages are not subject to Federal Unemployment Tax Act (FUTA). How Do You Know If Your Spouse Is A Partner Or An Employer/Employee? When spouses work together, the distinctions between a partnership and an employer/employee relationship can become fuzzy. The IRS provides recommendations to assist you and your clients in appropriately determining their duties. The spouses should be deemed employer and employee if the first spouse primarily controls the firm regarding management choices and the second spouse is under the direction of the first spouse. Suppose the second spouse has an identical duty in the business’s activities, provides practically equal services to the firm, and contributes capital. The spouses should be considered partners rather than employers/employees for tax purposes. Conclusion After reviewing the tax advantages and unique laws that apply to employing family members in your small business, you may conclude that working alongside your kid, spouse, or parent is not only a fantastic way to keep the business in the family but also a great way to reduce your tax burden. Of course, as with anything tax-related, specific laws, exceptions, and principles apply to every circumstance. As a result, seeking a tax pro software before proceeding is always smart. For tax preparers, Keystone Tax Solutions offers the best professional tax software to improve accuracy and streamline the process. Request a free demo now!

Tax planning strategies is a critical part of ensuring a business is successful and profitable, no matter the size. There are several different strategies a company can use to minimize its tax liability and maximize its profits. Small Business Tax-Planning Strategies Here are a few small business tax planning strategies business owners might implement: 1. Consider a Tax Status Change Sole proprietors might be able to save money by switching to a limited liability company (LLC) or S corporation tax status. LLCs and S corporations have more tax benefits than sole proprietors, so switching can help protect the owner’s personal assets. To switch the tax status, the owner will need to file a new tax return using the new tax status. They might also need to file additional paperwork with the state tax agency. 2. Loss Carry Back Scheme If the small business has suffered a loss, it might be able to carry the loss back to offset profits in previous tax years. This can help the business get a refund for taxes it has already paid. To claim a loss carry back, the owner will need to file an amended tax return for the previous tax years. They might also need to file additional paperwork with the state tax agency. 3. Leverage Coronavirus Tax Relief If the small business has been affected by the coronavirus pandemic, it might be able to take advantage of tax relief measures put in place by the government. The Coronavirus Aid, Relief and Economic Security (CARES) Act and the American Rescue Plan Act both provide tax relief for small businesses. The CARES Act provides a payroll tax deferral, while the American Rescue Plan Act provides a payroll tax credit. 4. Deduct Assets to Charity If you’re looking to reduce taxable income, you might want to consider donating assets to charity. You can deduct the fair market value of the assets you donate from your taxable income. To claim a deduction for asset donations, you’ll need to itemize the deductions on your tax return. You’ll also need to keep records of the assets you donate, such as receipts or appraisals. 5. Set Up or Contribute to a Retirement Accounts The business owner can set up a retirement account for themselves or their employees. Retirement accounts can help the owner and the workers save money on taxes. There are several types of retirement accounts, such as 401(k)s and IRAs. The type of retirement account you set up will depend on the business’s structure and your employees’ needs. Owners can deduct contributions they make to the employees’ retirement accounts from their taxable income. The employees can also deduct their contributions from their taxable income. 6. Track Every Receipt With Professional Tax Preparation Software Keeping track of the business expenses can be time-consuming and tedious. But it’s important to keep track of your expenses to deduct them from your taxable income. One way to keep track of the business’s expenses is to use accounting software. The best professional tax software can help you track the company’s expenses and prepare its financial statements with ease. There are many different accounting software programs available, so you’ll need to find one that meets your needs. Conclusion There are a few key tax planning strategies that small businesses should keep in mind to minimize their tax liability. These include staying up to date on tax law changes, knowing which deductions and credits are available, and planning for estimated taxes. By taking these steps, small businesses can save themselves a lot of money come tax time. Dealing with taxes can be challenging for anyone, even as an expert tax preparer. If you’re looking for innovative solutions that can streamline your tax preparation process, our professional tax software for CPAs can help simplify matters for you. Our affordable technology can empower tax preparers and help you start a tax business with no EFIN, so get in touch with us today at 1.800.504.5170 to see how we can ensure your tax business is booming.

Millions of taxpayers rely on tax professional return software and apps to help them prepare their returns. While these tools can be helpful, they also have some pros and cons. What are they? The Advantages of Using Tax Professional Prep Software or Apps With the technology we have today, it’s not surprising that there are software programs and apps that can file your taxes for you. If your situation is simple, you can submit your return to the IRS with just a few clicks or keystrokes. Here are some of the advantages of tax prep software: – Affordability Most tax prep software programs are reasonably priced, and many offer free filing for federal returns. This can be a big saving over paying a tax preparer to do your return. – Convenience Using tax prep software is a convenient way to file your taxes. You can do it from your home computer, and you don’t have to worry about finding a preparer and making an appointment. – Accuracy Software programs are extremely accurate, and they are updated each year to reflect the latest changes in the tax code. This can help ensure that your return is filed correctly and that you receive all of the tax breaks to which you are entitled. – Ease of Use Most tax prep software programs are easy to use. They walk you through the filing process step-by-step and provide help if you have questions. If you are considering using a tax prep software program, be sure to do your research to find the one best suited to your needs. The Disadvantages of Using Tax Prep Software or Apps There is a greater chance of mistakes. The IRS can look at your return more closely if it is done using software. You will still be responsible for making sure the information you enter is accurate. You will not get a professional to ask questions and help you figure out your return. There is a risk the software will not work with new updates to the tax code. When Should You Hire a Tax Professional Instead If your tax situation is complex or you’re not comfortable filing your own taxes, you might want to hire a tax professional. There are a few key indicators that suggest it might be time to hire a tax professional instead of preparing your own taxes. If your financial situation has changed dramatically in the past year, you’re self-employed, or you have rental properties, for example, you might want to consider professional help. Other times when it might be beneficial to hire someone include if you’re dealing with an IRS audit or if you have questions about the tax law that you need answered. Ultimately, if you don’t feel confident in your ability to prepare your own taxes, it’s probably best to seek professional assistance. To Sum Up There are pros and cons to using tax return apps and software. On the pro side, they can save you time and money. On the con side, they may not be as accurate as you would like, and you may have to pay a fee to use them. Ultimately, the decision of whether or not to use tax return apps and software is up to you. Keystone Tax Solutions is a reliable tax return software for tax preparers. Get started now!

Marketing is essential to successful tax practice. By encouraging clients to return year after year, you’ll be able to create a stable revenue stream that ensures preserve client retention. To build your client base, develop a marketing plan around these ten simple, actionable steps. These strategies will help you create a loyal customer base that will remain with you year after year. Here are some customer service tips to help retain your client base. 1) Uphold a Good Reputation A good preserve client retention is a powerful asset. If it’s good, you will be successful. If you are known for consistently poor customer service, you will be less successful. A good reputation can motivate and attract both clients and team members. A bad reputation can destroy your business and discourage success. To build a positive business reputation, give your clients what they want. Offer them convenience, broad expertise, competitive pricing, and a great customer experience. 2) Provide Great Customer Service A good reputation is essential to growing your business. But a reputation is only as good as your customer service. Your customer service is more important than your marketing efforts and your business plan. Many small businesses focus on marketing and ignore customer service completely. Focusing on customer service will help you grow your business. Great customer service attracts new clients and inspires loyalty, which builds a growing, loyal customer base. 3) Reward Customer Loyalty Loyalty is the most important form of business reputation. Loyal customers will be brand evangelists, recommending you to their friends and family. It’s important to reward customer loyalty. Show your appreciation by offering them deals, discounts, freebies, and other perks. This will motivate them to continue making recommendations, and help you grow your business. 4) Stay in Touch All Year Round A viable business requires a continuous stream of client activity. The only way you’ll be able to achieve this is by staying in contact with past customers all year round. Send out email newsletters, make phone calls, schedule meetings, and send holiday cards. This will help you develop new client relationships and make past clients feel important. 5) Know What Makes Customers Leave Asking your clients why they left your tax practice can be a great way to tweak your business. Use whatever information you receive to improve your customer service, and eliminate unnecessary problems. A lot of businesses fail to ask their customers why they left. They don’t want to hear the truth, and they’re afraid of the reaction. But if you want your business to succeed, you have to be willing to face the truth. 6) Stay Up to Date with Taxes To keep your client base satisfied, you need to stay up to date with all tax issues and changes. There are two ways to get involved with tax changes. First, you can read tax news and information. Second, you can find simple tax software that helps you stay on top of updates. Conclusion Great customer service is the foundation of successful business practice. It will help you attract new clients, motivate current clients to come back and stay, and retain your existing customer base. Keep up to date with the latest trends in taxes with Keystone Tax Solutions. We have the best professional tax software that will easily inform you of tax changes. Get in touch with us to learn how.

Tax preparation help is a complicated process, and it can be time-consuming if you have to do it every year. If you’re tired of doing your taxes, it might be time to find a tax preparation service that can do the work for you. There are plenty of tax preparation help services out there that can help you with your taxes. When should you decide to hire a professional for tax preparation? Continue reading. What Is Tax Preparation? Tax preparation is the process of preparing your tax return, which is done by using information found on your tax return forms and adding in any additional data you may have. This additional data can include charitable donations, capital gains, income earned from a business or side job, or any other tax-related expenses. This is not the same as tax planning, which is the process of integrating your tax-related expenses into a financial plan that helps you make decisions about how to spend, save, and invest your money. Tax preparation is a process that is completed at one point in time, whereas tax planning is something you can do on a yearly basis. Signs You Need Tax Preparation Help There are many signs that you could use help preparing your taxes. If you find you are spending more time or effort on doing taxes than you feel you should, it might be time to consider seeking professional help. 1) You Are Facing Complicated Tax Returns If you have many business expenses, investments, or a complex financial situation, you may want to seek help from a tax preparation service. Tax preparation can be complicated, especially if you have trouble understanding how different expenses and investments affect your tax return. An experienced professional can help you determine the best way to record your financial information to minimize your taxes and maximize your tax savings. 2) You Have a Lot of Financial Accounts If you have a lot of financial accounts that you use to pay your bills and make your investments, it can be difficult to keep track of all the different pieces of your financial puzzle. However, the more accounts you have, the more complicated your tax return will likely be. For example, if you own a business, you will need to keep track of your business income and expenses, which may be different from how you keep track of your personal income and expenses. You also need your business bank accounts to be separate from your personal accounts. Tax preparation becomes more complicated when there are multiple parts to your finances. 3) You Have Rental Property If you own rental property, you may want to seek professional help because the tax laws have become more complex regarding rental property. There can also be additional expenses and tax-saving opportunities that you need to consider as well. If you are a landlord with multiple properties, you may want to use property management services instead of doing the bookkeeping yourself. They can help you set up a budget, manage your properties, and prepare your taxes. Conclusion Tax preparation is just one aspect of tax planning. While tax preparation can help you determine how much tax you owe, it doesn’t always help you create a financial plan that maximizes your savings and minimizes your taxes. If you need tax preparation assistance, Keystone Tax Solutions can help you out. With the best tax preparation software at your arsenal, you can manage your taxes much easier. Get in touch with us today to get started.

While the process for home sales can be rather tricky as far as taxes are concerned, it’s not something that you won’t be able to manage as long as you know what you’re doing. To help you out, here are five things that you need to know when reporting a home sale. Capital Gains May Be Excluded The IRS offers a special exclusion for certain capital gains. To be eligible, you must have owned the asset for at least five years and have used it for personal purposes for at least two of those years. The exclusion applies to gains of up to $250,000 for single filers and $500,000 for joint filers. Exceptions to Ownership and Residence Rules If your client does not meet the above ownership and residence rules, they may still qualify for the exclusion if they meet certain exceptions. Some of the most common exceptions include taxpayers who are newly divorced or widowed, and members of the military or other government services. Essentially, this means that if you are divorced or separated, you can claim any time that your former spouse owned the home as time that you owned the home. However, you must still meet the residence requirement on your own. If you are widowed, you can use the time that your late spouse owned or lived in the home to qualify, even if you do not meet the ownership or residence requirements on your own. If you are in the military or another government service, you may be exempt from the 24-month residency requirement if your duties kept you from living in the home. The IRS Publication 523 outlines different exceptions to the general rule that expenses related to the sale of a home are not tax-deductible. These exceptions include cases where the home is being sold due to a change in employment, health reasons, or unforeseen circumstances. Limits on Excluding Gains If your clients qualify, they can deduct up to $250,000 of capital gains from the sale of their home, or up to $500,000 for couples who are married and filing taxes jointly. This exclusion from the Net Investment Income Tax means more of their money can stay in their pocket. Losses on a Primary Home Can Be Deducted If your client’s home sells for a loss, they will not be able to deduct the loss from their taxes. The only time a loss can be deducted from taxes is if the property sold was a commercial property. If your client’s home does sell for a profit, they may be subject to paying capital gains tax on the sale. Special Rules Apply to First-Time Homebuyers If your client receives a federal mortgage subsidy or tax credit when buying a home, they may be required to pay some or all of it back when they sell the home. This is called recapture. Your client can use Form 5405, Repayment of the First-Time Homebuyer Credit, to see how much they may owe in recapture taxes or if they qualify for an exception. Conclusion We hope this article proves to be useful when it comes to helping you gain a better understanding of how taxes and home sales work. While it may be rather tricky at first, the information that we’ve discussed above should help make things easier for you and all parties involved. If you’re looking for professional tax preparation software to streamline and optimize your processes, our products at Keystone Tax Solutions are just what you need. Contact us now to start your free demo!

The type of business you have will play an important role as it can affect a multitude of different factors. Given its importance, you’ll want to make sure that you choose the right type of business. To help you out, we thought it would be helpful to put together a brief article about partnerships and corporations. If this is something you want to learn more about, read on as we break down the differences between these two types of businesses. What Is a Partnership? A partnership is an agreement between two or more people to run a business together. The IRS sees partnerships as pass-through businesses, which means that the business’s profits and losses are shared among the partners and added to their personal income. This means that partners have to pay personal income taxes on their share of the business, as well as self-employment taxes and estimated taxes. The business itself may also be responsible for employment taxes and excise taxes specific to its industry. There are three types of partnerships: General Partnership: A partnership is a business relationship between two or more people who agree to cooperate in order to earn a profit. In a general partnership, each partner is equally liable for the debts and obligations of the partnership. This means that if the partnership is sued, the partners’ personal assets are at risk. Limited Partnership: A limited partnership is a business structure in which one partner has full personal liability while the other partners are only liable for the amount they have invested. This type of partnership must be formed through a state government agency. This would be the best structure for a business with one partner who is active in the daily operations and can take on liability, as well as one or more less-active partners who contribute to the business but don’t want to be fully liable. The limited partners cannot be involved in the day-to-day business functions. Limited Liability Partnership: A limited liability partnership is a business structure that offers liability protection to all partners. This type of partnership is regulated by the state, and it allows partners to shield their personal assets from the business. Additionally, partners are not responsible for the actions of other partners within the limited liability partnership. What Is a Corporation? A corporation is a business entity that is separate from its owners. This means that the owners are not personally liable for the debts and losses of the corporation. The corporation is also held to a higher standard of record-keeping than other business entities, which means that the owners are required to file annual reports, conduct annual shareholder meetings, elect a board of directors to oversee the business, and follow company bylaws. How Do Partnerships and Corporations Differ? The main difference between partnerships and corporations is that corporations have a legal existence separate from their owners, while partnerships do not. This means that corporations can enter into contracts, own property, and sue or be sued in their own name. Partnerships, on the other hand, are not separate legal entities from their owners. This means that partners are personally liable for the debts and obligations of the partnership. Another key difference between partnerships and corporations is how they are taxed. Corporations are taxed as separate entities, while partnerships are not. This means that corporate income is taxed at the corporate tax rate, while partnership income is taxed at the individual tax rate. Finally, corporations have shareholders, while partnerships have partners. Shareholders have limited liability, which means they are only liable for the amount of money they have invested in the corporation. Partners, on the other hand, have unlimited liability, which means they are personally liable for the debts and obligations of the partnership. Conclusion We hope this article proves to be useful when it comes to helping you gain a better understanding of the differences between partnerships and corporations. While it may seem complicated at first, the information that we’ve discussed above should be enough to give you good foundational knowledge on this subject. Be sure to keep everything that you’ve learned here in mind so that you can make the most informed decisions for your business. If you’re looking for professional tax preparation software to streamline and optimize your processes, our products at Keystone Tax Solutions are just what you need. Get in touch with us to begin your free demo today!

No one likes getting a letter in the mail that says they are being tax audit by the IRS. But here’s the thing: you shouldn’t let this fear stop you from taking action to improve your finances. In fact, you should be more willing to invest more of your hard-earned money into your future if it means lesser  audit risk. Tax audit typically only happen to the less than 1 percent of the population that get audited every year. In fact, most people will go through their entire life without ever being audited by the IRS. With that said, you should not worry about getting audited. Here are five reasons why it would be smart to stop worrying about an audit. 1. You probably won’t get audited. As we said earlier, most people will never be audited by the IRS. The IRS has much bigger fish to fry. So the chances of them focusing on you are slim. However, the chances of you getting audited increase the more money you earn. They typically only audit people who have been making a pretty large income or have been making off-the-wall transactions with their money. The same goes for inheritors of big estates or business owners who have had a lot of cash flow. As you move up the income ladder, your chances of being audited increase. 2. If you have nothing to hide, then you have nothing to fear. If the IRS is auditing you and it comes out that you have been lying, then you will probably have to pay more than the original tax you owe. The reason is the IRS will throw the book at you to make you pay for the money you still owe. There are some things you should be worried about if you are audited, but they aren’t related to the IRS. And besides, it is far better to pay more now than to be audited and pay more later. 3. If you are being audited, it isn’t because you are a bad person. It is because you probably made a mistake on your taxes. And if you did, then you will be thankful that they caught it while you can still fix it. Like we said earlier, the IRS auditors are looking to find people who are cheating on their taxes. So if you have been audited, it isn’t because you are a bad person — it is because you were just being human. You won’t be sent to jail, and you won’t have a for-sale sign put up in front of your house. 4. You can reduce your chance for a tax audit. If you want to reduce your chance for an audit, there are a few things you can do. First, make sure you are keeping The best way to reduce your chances of being audited is to keep your receipts and documentation as organized as possible. The more organized you are, the easier it will be for you to prove that you are right. Most of the time, all it takes to correct a simple mistake is to provide the IRS with the right documentation. 5. IRS only considers two to three years of audits. This means that you can keep your receipts for about three years. Once you reach the three-year mark, you don’t need to keep your receipts anymore. Thus, you can recycle that folder you are keeping them in. If you think about it, the three-year rule is a good thing. Why? Because this means that you can save money on filing fees without worrying about what will happen in three years. Conclusion So as you can see, you shouldn’t be worried about being audited. When it comes to audits, all you can ever do is to prepare for them. When you are prepared, it will be hard for the IRS to find fault.  And when you stop worrying, you will find that the process is quite easy and not stressful. Keystone Tax Solutions offers the best professional tax software designed to help you prepare your tax returns easily and on time. Let us take care of the most time-consuming parts of tax preparation. Contact us to get started!