If you made an error on your tax return, you would need to fill out an amended return form with the IRS. You can fill out the form yourself or have a professional prepare it for you. You may be charged penalties and interest if you do not file an amended return. To help you figure out what to do, we thought it would be useful to put together a brief discussion on this subject. If this is something that you want to learn more about, read on for a brief break down of what you should do in case of inaccurate tax returns. Will The IRS Catch It If You Have Made A Mistake? The IRS is likely to catch any mistake or incorrect information on your tax return. The IRS has substantial computer technology and programs that cross-reference tax return information with data received from other sources, such as employers. If you report incorrect information on your tax return, their programs will almost surely catch it. Can You Re-File Your Taxes? If you need to change your taxes or if you forgot to add something, you can refile them by filling out Form 1040X. This form is available online or at an IRS office. You can also have a professional prepare the amended return for you. What Is the Penalty for Incorrect Tax Returns? There is no specific penalty for an incorrect tax return. However, penalties do apply to your incorrect tax return, as they are in proportion to the amount you had to pay. For instance, if you had to pay significantly more tax due to a mistake on your return, there would be a much larger penalty than if the mistake had resulted in paying less tax. You cannot go to jail for making a mistake or filing your tax return incorrectly. However, if you deliberately leave off items that should be included, such as tax deductions, and are caught and charged with tax fraud, you can face a separate criminal charge. IRS agents will look to determine how you designed your actions and how you acted in response to being discovered. Should You File An Amended Tax Return If You Received An IRS CP-2000 Notice After Filing My Taxes? If the IRS sends you a CP-2000 notice saying that you underreported income, do not file an amended tax return. Instead, contact the IRS at the number on the notice. The notice may state that you owe additional taxes, and it may also recalculate your taxes based on their information. If you realize that you did indeed leave some income off of your original tax return, contact them and tell them this. You can pay the proposed additional tax without having to file an amended tax return. Conclusion We hope this article proves to be useful when it comes to helping you figure out what to do in case you ever find yourself in this situation. While making a mistake on your tax returns may seem problematic, it can be easily dealt with if you know what you’re doing. Be sure to keep everything you’ve learned here in mind so that you can deal with the problem effectively. 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!

The Employee Retention Tax Credit (ERC) is a fairly new thing, as it has only been implemented since 2020 as part of the CARES Act. It is a refundable tax credit meant to incentivize employers to keep their employees on payroll during the pandemic. But since then, there have been updates made regarding the ERC updates. And here’s what you need to know. What Is ERC? Basically, the ERC gives businesses that have fewer than 200 employees the ability to obtain a tax credit of up to $10,000 for each employee. The amount a business would receive would be based on the average salary of each worker during the tax year in question. The money is meant to incentivize businesses to keep their employees on payroll during the pandemic. If a business has fewer than 50 employees, the business is eligible for a tax credit of up to $5,000 for each employee. Benefits of ERC ERC is meant to be used by businesses to help keep their employees on payroll during the pre-pandemic time. Being able to prove to employees that they can have a job, at least during the pandemic, can give businesses a competitive edge in keeping their workers. But this tax credit is unique in that it can be used by businesses that don’t usually offer any sort of benefits to their employees (comparable to the tax credits given to businesses offering health insurance to their workers). Limitations of ERC It is limited to businesses that have fewer than 200 employees. Only one employee needs to have been hired by the end of year one, to be eligible for the tax credit. The ERC is only good for the first year of the tax year. What the Updates Bring to the Table The first update that was made to ERC is that the tax credit was made refundable for businesses that were previously ineligible for ERC. In other words, businesses that had less than $10,000 in tax liability are now able to claim the entirety of their ERC refund regardless of the amount of their tax liability. In this situation, the business would receive a rebate check from the IRS. Secondly, the updates changed the way that businesses that have more than 200 employees and less than 500 employees can claim their ERC refund. Previously, these businesses were capped at a $3,000 credit per employee. The updates allow these businesses to claim the entire credit for their ERC refund regardless of how many employees they have. The final change made to the ERC is that businesses that have more than 500 employees were previously capped at a $7,000 credit per employee. This update allows businesses with 500 or more employees to now claim the full credit for their ERC refund as well. Final Thoughts These updates illustrate a lot of changes that could come to the ERC in the future. But one thing is clear: the ERC is still a fairly new thing. And it is not yet clear how much it will impact businesses during the pandemic. That being said, it’s best to keep an eye out for further updates regarding ERC in the future. Grow your tax business with the help of Keystone Tax Solutions. We are the best professional tax software for tax professionals. Keystone Tax Solutions is a leader in the professional tax software industry. With more than 15 years of experience, we offer 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. Get a free demo now!

Your Tax Preparation Business’s practice will require bookkeeping and accounting like any small business. Unfortunately, there is no one-size-fits-all solution for small businesses. You’ll need a company account, an accounting system, bookkeeping software, and at the very least, knowledge on how to pay quarterly business taxes. While you may already possess some of the information and abilities required to keep books for tax purposes, bookkeeping and accounting to manage your small business include a little more. Make sure to read more about accounting and where to find professional tax preparation Business’s software. Creating a Bank Account For Your Business You’ll need to start a business bank account once you’ve registered your tax business with your state. This keeps your personal and corporate finances separate, making bookkeeping much easier. You must have a business bank account if you’ve registered your company as an LLC. Accounting Methods: Cash vs. Accrual-Basis After you’ve set up your business bank account, you’ll need to decide whether you’ll keep your books utilizing the cash or accrual accounting technique. Revenue and costs are recognized in the cash-based system when they arrive in your bank accounts. Even if money hasn’t yet arrived in your bank account, the accrual approach acknowledges revenue and expenditures when the product or service is supplied. Consider preparing tax returns for a client in February but not receiving payment until May. If you employ cash accounting, you won’t be able to recognize that revenue until May. If you utilize accrual accounting, you’ll see it in February. The cash system is a little easier because the accrual-basis technique involves duplicate entries for each matter—a debit in the account that declined and a credit in the account that increased (such as accounts receivable and accounts payable). The accrual approach is essential in most major enterprises. You have the option as a small business owner. Though it requires more effort, accrual-basis accounting is more popular since it provides a more accurate picture of your finances. On the other hand, using the cash technique can save you time because you won’t have to double-enter each transaction. You can choose the time-saving cash technique if your expenses are straightforward and you normally receive paid immediately after performing services for consumers. Software for Bookkeeping and Payroll When filing your clients’ taxes, you already know that having the best professional tax software makes everything. The same may be said for accounting and bookkeeping software. Your bookkeeping software should be able to connect with your business account to avoid making manual entries and automatically generate financial reports and statements. You should be able to attach scanned receipts to your expense entries and switch between cash and accrual accounting techniques. Transaction Entry and Categorization After setting up your accounting and bookkeeping software, you can start categorizing transactions from your bank account. If you use accrual accounting, you’ll manually input transactions as they happen and then reconcile them with payments that arrive in your bank account. At least once a week, go over your transactions and upload any relevant scanned receipts or invoices. Keeping track of your finances will never be a chore, and you won’t lose copies of your receipts. Monitoring of Profit, Loss, and Cash Flow Try to study critical financial statements, including profit and loss sheets and cash flow sheets, at least once a quarter. Your bookkeeping software can generate these reports for you automatically if you’ve been keeping up with your books. Your expenses and revenue are listed on the profit and loss statement for any given period (usually per month). This information will make it easy for tax preparers to track earnings or losses during the off-season vs the busy season, making it easier to set quarterly income objectives. A cash flow sheet allows you to track how much money is coming in and out of your accounts. If you keep your books using the cash-basis method of accounting, you’ll already have a good idea of your cash flow. If you adopt the accrual method, you’ll need to examine your cash flow sheets frequently. If you have outstanding invoices for clients, your books may display bigger amounts than the actual cash in your accounts. All in One Software Package Small and big tax offices with several offices and many workers will benefit from the ALL IN ONE Software Package. This is the most popular package for tax offices with 50 to 500 clients. Stop paying too much in hidden fees and tax software. Save a lot of money on fees. All 1040, Sch C, and state forms are included in one package. Enjoy unlimited returns in 50 states and an unlimited number of additional users, and access to three prior year returns. Keystone Tax Solutions is a great place to start if you want to start a tax business. We are a market leader in professional tax preparation software, providing 100% web-based software and assisting thousands of tax professionals in obtaining affordable technology-driven professional tax preparation software. Get your free demo today!

As you complete your tax return, you are struck with horror. You do not have the finances to pay your tax! You have paid it before, and sometimes, you even get a Pay For My Taxes return. So what do you do now that you are unable to pay? What Happens When You Can’t Pay Your Taxes? There are many reasons why one may have difficulty paying for their taxes. In this case, it may be tempting just to skip your tax altogether. They will probably overlook it, and you can just file for the next financial year. However, it is highly encouraged you to Pay For My Taxes. It is illegal and can result in jail time and fines. The IRS can also take control of your assets, which will make it a bigger and more difficult situation for you. So what do you do now? What Are My Options If I Can’t Pay My Taxes on Time? You will have two main options: to file for an extension or pay for my taxes late. Both of these options will have their consequences, but if you cannot find another way to pay your taxes, they are your only options left. 1. Filing for Extension Most people do not know that they can file for an extension on their tax return form. You can submit Form 4868 to the IRS by the due date to obtain this extension. However, this is only an extension for the tax return filing. This does not free you from paying your tax liability. When your due date comes, you will still be required to pay for your tax liability. Additionally, you doing so will also give you penalties of 5% on each month that your tax is paid late, capped at a max of 25% of your tax liability. If you are late by more than 60 days, you will be paying either $435 or your total tax liability, whichever is smaller. This amount could still be topped off with additional penalties if you have a higher unpaid tax or a later filing date. Filing for an extension may give you blanket protection from legal cases. However, it does not save you from the fees. You will still need to pay for tax liability on your due date, and failure to do so would still give you penalty fees. 2. Paying Late You can send in your documents for tax return and just pay late. However, this will give you additional penalties and charges, as well. How much penalty and costs you have will depend on your total taxes and unpaid balances, and it continues to increase as time passes by that you are late in payment. Eventually, the IRS may end up sending demand letters for you to pay. The worst-case scenario is that they will charge you for non-payment of taxes, which could fine you even bigger or end up in some jail time for you. Conclusion No matter how much you look at it, there is no way out. This is why you are advised to pay your taxes throughout the year so that when the month of filing tax returns arrives, you will no longer have to pay a considerable amount. If you are still unable to pay, you may look for some financial aid through friends and family or apply for loans. Regardless of your situation, you will need to pay your taxes on time, and failure to do so will harm you even more. Running your own tax preparation business? Make it easier with Keystone Tax Solutions, a professional tax software servicing the USA. We make it easier for you to run your business and allow you to focus on your multiple clients. Work with us today to improve your business processes.

Your tax preparation firm requires a properly planned and executed customer acquisition strategy to sustain a healthy influx of new clients. Tax businesses of all sizes and types can benefit from an increase in customer acquisition. For instance, even a firm with a large number of existing clients can experience occasional slow periods. This is when it’s wise to reach out to potential new clients in order to maximize profits and ensure ongoing success. Customer acquisition is a foundation of your marketing strategy and an essential part of your business plan. It allows you to expand your client base–replacing lost clients and maintaining new clients in the long term. Thankfully, you can build and implement a client-winning customer acquisition strategy for your tax preparation business even if you have no prior marketing experience. The following paragraphs offer principles and approaches that will assist you in creating effective marketing strategies that will attract new clients.   Content Marketing and Social Media Content marketing allows tax preparers to establish themselves as industry thought leaders. The more you share your expertise in the field, the more likely potential clients will put their trust in you to handle their taxes. Content marketing delivers valuable tools and information to your target clients. You can reach this goal by writing blog articles, creating videos and infographics, and posting updates on social media. This marketing strategy—whether done online or in print—helps your tax firm obtain attention, reputation, and authority. Social media can be a strong tool for your organization if you have a strong content marketing campaign. Make sure to utilize social media posts and read your analytics to effectively spread your content to more audiences.   Search Engine Optimization (SEO) All small business owners want to be found on search engine results pages (SERPs). There are two ways to get there: organically and through paid search. Paid search: Paid search results are labeled as ads and show up at the top of the page. Organic search: The search engine’s algorithms naturally prefer organic search results as users are more inclined to select organic search results than paid ones. However, if you want your company to appear naturally in search results, you’ll need to work strategically on your SEO and be patient with the results. Many local digital marketing services can assist you in developing an ongoing SEO plan if you find the process of learning and applying SEO to be too challenging or time-consuming. The majority of these firms can assist with content marketing and social media management.   E-mail Marketing E-mail marketing allows you to stay in touch with existing consumers while also converting leads into paying customers. Regular newsletters, special deals, and discounts can all be part of your e-mail marketing strategy. You can also include links to the site for anything that is entertaining and relevant to your customer base.   Customer Referrals Consumers trust family and friends’ recommendations, making word-of-mouth advertising the most trusted kind of advertising. Customer referrals should be a part of your customer acquisition plan because they are low-cost and have a high return potential. It’s not enough to know the strategies for customer acquisition. They must also have a scalable, diverse, and long-term approach. The additional sections below expand on this idea.   Scalable Strategies Your marketing strategies should become more effective over time without becoming prohibitively expensive. Sponsored marketing methods, such as paid search or social media ads, may reach a plateau in terms of the number of new clients they bring in over time. You’ll almost certainly have to boost your investment to obtain more clients using these strategies. On the other hand, a company blog will normally become more effective over time without getting more expensive.   Diversified Strategies Keep in mind that you can spread your resources across different marketing tactics. This is why you will lose potential clients if you rely on a single marketing tactic. You’re also more susceptible to shifts in consumer behavior and tastes if your marketing approach is not diversified. However, you also need to manage your limits. Make sure that the time and money you invest in your projects or campaigns are sustainable. Utilize tactics that will aid in the refinement, diversification, and evaluation of your work. This enables you to have a customer acquisition approach that’s unique to your company.   Conclusion Many small tax firms mistakenly think that the best way to attract new customers is to invest in traditional advertising, especially television ads. However, these strategies often do not provide the desired results and can quickly break the bank. Instead, you should focus on generating organic growth through a well-planned internet marketing strategy. Keystone Tax Solutions is the best professional tax software in the country. This professional tax software for tax preparers will change the way you do business. Set up a consultation with us today!

The Tax Cuts and Jobs Act of 2017 resulted in a massive change in the American tax system. The Qualified Company Income Deduction (QBID), often known as Section 199A, is one provision that helps many business owners. The provision permits particular sole proprietors, S corporation and partnership owners, and partnerships to deduct up to 20% of their qualifying business income (QBI) from their taxable income if a qualified business or trade generates it.   What is a qualified business income deduction? The qualified business income deduction (QBI) is a tax break that allows self-employed and small-enterprise owners to deduct up to 20% of their eligible business income on their federal income taxes. To qualify, the total taxable income in 2021 must be less than $164,900 for single taxpayers or $329,800 for joint filers. The restrictions will increase to $170,050 for single taxpayers and $340,100 for joint filers in 2022. If you exceed that threshold, numerous IRS regulations govern whether your company income is eligible for a full or partial deduction.   Who qualifies for qualified business income deduction? The qualifying business income deduction is available to persons with “pass-through income,” which is business revenue reported on your personal tax return. The following entities are eligible for the qualifying business income deduction: Sole proprietorships   S-corporations Companies with limited liability (LLCs).   How to qualify for QBI Suppose your total taxable income — not just business income but also other income — is at or below $164,900 for single filers or $329,800 for joint filers in 2021. In that case, you may be eligible for the 20% deduction on taxable business income. The restrictions will increase to $170,050 for single taxpayers and $340,100 for joint filers in 2022. However, if your income exceeds these boundaries, it’s time to rethink your options. Here’s why: If your income exceeds those restrictions, your eligibility to claim the pass-through deduction is dependent on the specific type of your business. Even if your company qualifies, there’s a risk you won’t get the whole 20% tax savings because the qualifying business income deduction is tapered down for some companies.   What effect does taxable income have on the QBID? If the taxpayer’s primary source of income is their passthrough business, they will most likely be unable to deduct the full 20% of their QBI. This is because the QBID must be the smaller of 20% of the QBI component plus the REIT/PTP component OR 20% of the taxpayer’s taxable income before the QBID, less net capital gains, and qualifying dividends recorded on the return. Their taxable income will be less than their QBI since standard or itemized deductions and the deductible amount of the self-employment tax lower taxable income. They will most likely be able to deduct only 20% of their taxable income before the QBID.   Where will this deduction appear on my tax return? The qualifying business deduction is applied to the taxable income of the business. That is, it is determined after subtracting the standard deduction and any itemized deductions from the adjusted gross income (AGI). Because it is based on the business’s taxable income, the qualified business deduction is calculated independently for each firm.   What is the purpose of this tax break? The qualifying business income deduction attempts to level the playing field between pass-through businesses and C corporations, both of which benefit from lower tax rates.   Conclusion The recent tax changes show that the government wants to support small businesses and reward entrepreneurs. The qualifying business income deduction is one of the provisions in the Tax Cuts and Jobs Act that supports small businesses and should help many business owners keep more of their profits. If you are looking for the best professional tax software in the market today to help you with the numbers, look no further than what we have to offer here at Keystone Tax Solutions. We have our own patented professional tax software for all tax preparers who want to make their work more effortless in the long run. Call us today for more information about our software and services.

Tax season can be a very stressful time for people, hence the desire that many people have to hire tax preparers that can make the whole ordeal easier for them. As a professional tax preparer, much of your business relies on garnering enough clients during the right times and ensuring satisfaction for a return engagement. Thankfully, there are effective ways to ensure client satisfaction when you are tax preparing for them.   Do Your Research On Market Insights When you are doing your research to learn more about the market, make sure that you are also keeping the needs of your clients in mind. For example, if you notice that tax laws have changed, do your best to research how these changes will affect your clients. This way, you will be able to prepare a plan that is relevant to these changes and will satisfy their newfound needs. It will also allow you to understand the current priorities and perceptions of your client base so you can be mindful and adjust accordingly. Any major shifts and industry changes should be taken into account when setting up for work.   Don’t Forget Customer Care Ultimately, it is important to know and understand your clients. At the end of the day, your service is still one where you have to interact with your clients and make them feel heard. Establishing a good relationship with your clients helps them feel more at ease with you and increases their satisfaction with your services. It’s easier to rely on a face that they know and someone they have had positive interactions with as opposed to a bot or distant worker. The key here is effective communication and establishing what they need. Then, you’ll want to make sure you are reachable through the right channels and at consistent hours.   Invest in the Right Tools and Environment Most of what makes a successful transaction is how efficient it is. So, invest in the right tools to make sure you can do your job effectively. When you have a conducive environment for productivity, you are more likely to turn up with valuable work and even finish things with more ease. Indulge in a comfortable chair for your work and use the tech tools at your disposal so you can really maximize your output. You can even make use of tax pro software to streamline your work. This is a win-win situation as it makes your own labor less taxing (pun intended) and ensures speedy results without sacrificing quality for your clients.   Pin Down Your Own Strengths It’s good to have a niche in a populated market. When you pin down your strengths, it’s easier to narrow down your exact market and deliver the specific results they are looking for. It’s all in discovering your own skillset and leaning into it.   Conclusion Tax season is a time when consumers are looking for tax preparation solutions. Fortunately, you have the opportunity to offer such a valuable service to clients and create a great rapport with them. Do this well, and you can increase your opportunities and get repeat business. If you’re in need of tax software for preparers, check out Keystone Tax Solutions. We offer the best software solutions for professionals.

Are you looking for the best professional tax software or accounting software for your firm? Do you want to team up with a provider to help manage your clients’ books? If so, you need to know what to look for in accounting software. If you are thinking of getting a provider, then you should know what factors to consider:   Accounting Software Factors to Consider As an accountant, your objective is accuracy, both in your books and in your clients’. There are a few other factors you should consider when shopping for accounting software, however:   Accounting Provider’s Customer Service Reputation Customer service reputation is vital because, without customer help, your clients will be in trouble. The time you spend taking care of your own clients’ accounts should be time devoted to creating additional revenue. If you choose a well-known provider for customer service, you can devote more time to other important tasks.   Stability of the Company Choose a stable accounting software provider to ensure that your accounting software is secure. When choosing a provider, you also want to ensure that the company itself is stable so it can ensure that you have a secure product. Try to find out how long the company has been in business. Going back at least three years should give you enough information to make an informed decision. You also need to find out how the company is structured. For example, is it a large corporation, or is it a small business? Knowing this information will help you figure out how stable it is.   Whether the Software Is Desktop (Local) or Cloud-Based Some accounting software providers use a cloud-based system, while others use a desktop, local application. Local software usually runs on your computer, while cloud-based software runs with an Internet connection. Local software is less secure, because it is in your computer, while cloud-based software is more secure, because it runs on the Internet, making it more difficult for hackers to break through.   Kinds of Features the Software Offers There are many features accounting software can offer. You should know what features your firm or clients require and determine whether your accounting software can provide them. Depending on your profession, your firm or clients may require features such as credit card services, payroll, or legal tools. Other features that you may want to take into consideration are the following: Credit Card Services Customer Attachment Programs Billing Tools Legal and Non-legal Tax Tools Integrations with Other Businesses   Cost of Software Your budget should also be a consideration when choosing accounting software. Although you want a good accounting software provider, you want to pay the appropriate fee. If you find software that is affordable, then you should definitely buy it. The cost of your accounting software depends on which features it offers. For example, basic accounting software may be as low as $50 per month, but if you need high-end features like credit card services, the price will be higher.   Conclusion Choosing the right tax preparation software provider can help you manage your clients’ books. Whether you choose a local or cloud-based provider, you should always make sure you choose a reputable provider. Doing so will allow you to focus on other important tasks, such as creating additional revenue for your firm or ensuring that your clients pay their bills on time. Keystone Tax Solutions is the best tax pro software provider that can help make tasks easier for tax preparers like you. Check out the features of our software today and sign up for a demo!

If you live in the United States or have US citizenship and make money, you are very certainly obligated by law to submit an annual tax return with the Internal Revenue Service. Tax software is one of the most cost-effective methods to do your taxes. Tax software can be accessed via your web browser, as an application downloaded to your computer, or as an app on your cell phone or tablet. You can e-file your federal and state tax returns by entering financial information such as your W-2 or self-employment income. With so many highly recommended tax software alternatives to pick from, it can be challenging to decide which one is ideal for your tax situation or if you should consult with a tax professional. Here are some of the best tax software solutions, as well as an explanation of how tax software works.   What Is Tax Software? Tax software is a sort of software meant to help people prepare and file their income tax returns. It’s a step-by-step tutorial, calculator, and, to a lesser extent, organizer. You won’t have to complete your taxes manually if you use tax software; the primary goal of tax software is to automate the procedure. It may save you a lot of time, money, and hassles while also ensuring that you are following the most current tax rules and regulations. Tax software will automatically determine how much tax you owe or how much of a refund you may anticipate once you enter your tax information on your W-2s, 1099s, and other pertinent papers.   How Does Online Tax Software Work? When you complete your income taxes on paper, you spend a significant amount of time switching back and forth between them. When you get to a line on form 1040 that requires a supporting form or schedule, you go there and fill it out, then transfer the number back to the 1040. Sometimes you need to fill out a worksheet, track for a document you received in the mail, or double-check your calculations because something doesn’t appear to be correct. If your return is intricate, you may need to repeat this process several times. Online tax services operate in a very different manner. You can stop thinking about the forms you need and if your calculations are proper after registering an account and meeting the site’s security criteria. You also don’t have to be concerned about how any changes to the tax code would influence your return. Everything is taken care of in the background. When you utilize a digital tax preparation service, you’re essentially filling out a lengthy questionnaire. These websites ask you questions, and you respond by filling in blank forms, picking the proper choice from a list, or pressing a button. You will never be required to examine an actual IRS form or schedule (though in some cases, you can if you want to). If you’re familiar with tax forms, you’ll know the course that the tax site takes. It follows the format of IRS Form 1040. Personal information is given first, followed by income, deductions, credits, health insurance status, and taxes paid. After you’ve gone through all of the sections that relate to you, the site will examine your return and point up any potential errors or omissions. After you’ve fixed any issues, the program sends your tax data to any state returns you’ll need to file. Then you answer a few more questions, go over your complete return, and pay the service fees (if there are any). Finally, you electronically file your return and print or save a copy for yourself.   Conclusion Your federal income tax return can be one of the most stressful and confusing financial tasks. Tax software can make it easier by automating the tax preparation process. Tax software can speed up your return, help you avoid costly errors, and reduce the likelihood of an audit. Tax software can also save you money by reducing the need for tax professionals or even for printing out your return and mailing it in. If you are looking for the best professional tax software in the market today to help you with the numbers, look no further than what we have to offer here at Keystone Tax Solutions. We have our own patented professional tax software for all tax preparers who want to make their work easier in the long run. Call us today for more information about our software and services.

One of the most important tools you can ever have in your tax preparation business is your tax preparation software. With it, your life as a tax preparer is a whole lot easier, and just like how an F1 driver needs to be put in the right car to make the most out of it, you need to have the right tax preparation software to do your job right. That said, with so many tax preparation software to pick from, it can be tough to know which one fits your needs. To help you out, we want to share with you a few considerations to make to choose the perfect tax preparation software for your tax preparation business:   1. The Pricing Of course, price is always a concern. The good news is that there is a lot of tax preparation software that offers a one-time purchase at a very low price. The bad news is that if you want the latest and greatest tax preparation software, you will have to buy it every time there’s a new version. There is also subscription-based tax preparation software that will charge you monthly or yearly. Ensure that you know what you’re getting for your money and if you are expected to pay for yearly upgrades.   2. Ease of Use How much time do you have to learn new software? Would you rather spend your time doing work or just being with your family? The more time you spend on learning a new tax preparation software, the more time you are spending away from your family. So make sure that you choose a tax preparation software that you can pick up easily. Make sure that the software is intuitive and that you don’t have to go through a very long and tedious learning curve.   3. Accuracy Obviously, your tax preparation software must be accurate. If you want to do your job right, then you must be working with the right software. That said, the perfect tax preparation software must be able to provide you with the right info, and it’s up to you to make sure that it’s right. Make sure that you double-check the answers, and if you are not satisfied, you can ask for help.   4. The Device You will have to work with your tax preparation software on a lot of devices. For example, you might be working on your laptop when you have time, but you probably also do your tax return on your smartphone and a tablet as well. Make sure that your tax preparation software is able to be used on all of the devices you are using. That way, you can keep track of your finances, and you can work on your taxes any time, anywhere.   Conclusion You can make many other considerations before making your final decision, such as the customizability of the software down to after-sales support. However, if you can make it to these four considerations, you have yourself a great tax preparation software that will make your work more efficient and accurate. So, take your time to pick the right software. Your business will thank you later for it! Keystone Tax Solutions offers professional tax software to help tax preparers make the most out of their business. If you are looking for the best professional tax software in the US, check out ours today!

As a tax preparer, you are an attractive target for identity thieves. Sensitive financial information, combined with the private details you collect as part of your job, makes you a prime candidate for this crime. It’s especially important to protect yourself and your clients from the dangers of tax identity theft. To help protect yourself and your clients from these threats, we thought it would be useful to put together a brief list of tips to help deal with this problem. If this is something that you’re interested in learning more about, read on for four effective tips that will help protect taxpayers from identity theft.   Have a Data Security Plan Did you know the IRS recommends that tax preparation businesses hire an in-house or outside consultant to create a cybersecurity plan? But, if that’s not in your budget, read IRS Publication 4557 to understand the details of creating your business’s cybersecurity plan. These are a few key points from that publication.   Follow Data Protection Best Practices Basic data protection best practices include using a password manager that generates and manages passwords across all devices, installing an anti-malware program on all computers, encrypting sensitive files and emails with a strong passphrase, and wiping old computers that contain client information before you sell or donate them.   Inform Yourself on Scams Data breaches occur frequently as a result of phishing emails. So it’s important that you and all of your employees know how to identify phishing emails and how to avoid them. Most phishing emails target tax preparers, so they will pose as the IRS in emails to scammers. Always check the domain in the email address and be suspicious of any messages that feel urgent or demand that you take action now, or make requests of you that seem weird. For instance, a common form of phishing scam involves a stranger sending you an urgent request for help because their emails are being hacked, which suggests that if you do not act now, you will lose your account or face legal consequences. Installing malware protection on your computer provides protection against downloading any malicious software that might be attached to emails like these.   Monitor Your EFIN and PTIN Activity Identity thieves might target your EFIN or PTIN numbers and use them to file fraudulent returns. If you receive daily acknowledgments for returns you file, and the IRS posts weekly reports listing the e-filing numbers for every PTIN, you can catch this type of fraud early. If your practice files more than 50 returns per year, you can also access weekly reports of PTIN filings through the IRS website. Contact the IRS e-help desk immediately if the number of returns in their reports never matches up to the actual number of returns your practice has filed.   Conclusion We hope this article proves to be useful when it comes to bolstering your defenses against identity theft. While this may seem like a lot of work, you’ll want to do all you can to keep your and your client’s data safe from potential threats. Be sure to keep everything you learned here in mind to minimize the risk of falling prey to identity theft schemes. 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!

The American tax system is quite complicated, so it’s not too surprising that many Americans have adverse feelings towards tax filing. There are some people, though, who find their passions with taxes. They genuinely enjoy the days leading up to tax season and are eager to share their wisdom and expertise with others, especially with tax preparation. Do you see yourself in a similar situation? Well, you likely already know that you can make a living as a tax preparer. If you would rather begin a tax preparation business instead of pursuing freelancing, here are some steps you must take to begin your journey.   1. Obtain the Required Education and Training If you wish to open a tax preparation business, you will need to acquire the proper education and training. The IRS maintains a list of approved education providers to prepare and represent tax returns. If you don’t find your school on this list, it is likely that your particular school is not properly accredited. The IRS has also set up a Tax Preparer Program to prepare you to be a tax professional by helping you register with the IRS, receive your PTIN, and stay up to date on the new tax laws.   2. Prepare and Submit the Requirements You need to register your tax preparation business with the state, local government, and IRS before proceeding with anything else. Now, you should note that each state has different requirements, which is why you have to double-check the list for submission. Some of the documents you may need to prepare include the following: Preparer Tax Identification Number (PTIN) LLC, incorporation, or corporation application Sole or general proprietorship registration Electronic Filing Identification Number (EFIN) Tax compliance form   3. Ready the Designated Workstation or Office Once you have submitted the requirements, you can focus on other aspects of starting a business, like setting up your workstation. If you’re operating from home, having a designated workstation helps separate work from home life. That said, you likely know about the basics, such as a spacious desk, comfy chair, and a powerful laptop or computer that can handle your productivity tasks. Aside from that, you may also want to invest in trusty tax software for preparers for boosted efficiency. There are many tax software programs right now, so it’s best to do your research beforehand. One example of a software you can rely on is the Keystone tax software, which comes with unlimited e-files, a customizable mobile application, tax estimator, and audit protection.   4. Establish Your Tax Preparation Business in the Market Now that you have the proper education, training, workstation, and tools you require to obtain clients and start making money. You may want to create a strategic marketing plan to reach out to your target audience. For instance, if you want to target those living in your local area, you can create flyers, business cards, and brochures to hand out. If you will focus on those living outside of your local area, you can create a website. Once you have built a site, you can market your business by getting on social media to attract more clients. You may also want to consider joining a professional organization to network with other tax professionals.   Conclusion If you have a passion for taxes, establishing a tax preparation business may be right for you. By taking the steps above, you can get your business up and running in no time at all. Are you looking for the best tax preparation training to get you started on your journey? Keystone Tax Solutions can assist you in this endeavor. Our tax training will equip you with knowledge regarding tax laws and train you for tax preparation. Contact us today to learn more about our training services.

Tax is the lifeblood of the nation. As a good citizen of this fair country, you are expected to pay your fair share. Thankfully, we have reliable taxation software which allows us to efficiently submit our income tax returns. Now, we may understand these taxation concepts, but sometimes, life gets in the way. Even if we have the taxation software to make filing easier, we may still have to file for a tax exemption. The government allows a six-month extension. All you need to do is file Form 4868 to the IRS. If you have no idea how to, continue reading this article.   What You Need to Know about Form 4868 Form 4868 is filled out if you need to file for an automatic extension of your income tax return filing deadline.   Take note that it is also due on the same deadline as your income tax return. In recent years, it falls on April 15 or the next weekday if the said date falls on a weekend. If you are a resident of Louisiana or Mississippi and some parts of Connecticut, New York, New Jersey, and Pennsylvania, you do not have to worry because you are automatically given an extension because of Hurricane Ida. Please also note that residents of Illinois and Kentucky are granted the same clemency because of the tornado that ravaged these states in December 2021. But kindly consult with your IRS disaster relief announcements to determine your eligibility. You should not be afraid to avail of this, even if it is your first time to take advantage of this. It will cost you nothing and is relatively easy. You can even do it online. Whether you will file it in person or online, you would need some pertinent information, such as your identification information (name, address, Social Security number, and your spouse’s Social Security number), and of course, your income tax information. You should already have an estimate of your total tax liability (for the year in question), total payments that you made, the balance due, and the amount you are paying. The form would also ask you if you are a US citizen or resident who is out of the country or if you have filed a Form 1040-NR. It is an income tax return form for nonresident aliens who have businesses in the US during the tax year or otherwise earned income from US sources.   Filing Online The form is pretty much straightforward. You might even say that doing it online is easier compared to working on your tax returns in your taxation software, especially if you have a tendency to be disorganized. Even some of this taxation software can help you file it.   Conclusion Some people are afraid to file for a tax extension because they fear that it entails complicated processes. Contrary to such belief, it is very straightforward. Many tax preparers suggest doing this instead of paying a hefty penalty. If the main reason why you cannot submit your returns on time is that you do not know what to do, you should immediately reach out to a tax preparer. Most of them utilize Keystone Tax Solutions taxation software because it is already designed to be GAAP-compliant. If you’re a tax business interested in our partnership packages, contact us for a free demo.

Many taxpayers file tax returns on April 15, but people do not have to wait for this date to submit theirs. In fact, there are various benefits to accomplishing tax returns early. First off, one will have enough time to prepare and gather the necessary documents in claiming all deductions. After all, last-minute hassle over receipts is something to avoid. As a tax preparer, you can assist your client in staying away from possible tax issues, eventually satisfying them with your service. In this article, you will learn about the other top reasons why filing tax returns early is beneficial for you and your client.   Amended Return Prevention Filing early in the tax season will help you make more accurate tax returns on behalf of your client. Keep in mind that faulty returns are likely to be amended returns and result in nasty audits.   Faster Refunds Filing early will no doubt give you faster refunds. It will also help you avoid rushing and making mistakes that can eventually lead to a stressful audit and an unsatisfied client. Efficient tax planning will give you ample time to estimate capital gains, examine tax losses, and other processes relevant to your tax preparation. Procrastinating and putting off this task will prevent you from achieving peace of mind until you have checked this responsibility off your list. Filing sooner can almost always guarantee a quick refund since the IRS is not as busy early in the season, unlike in the middle of April. Finally, filing tax returns early can get your client’s money in their hands as soon as possible. It will help them pay their bills and expenses right away and avoid taking out expensive loans.   Identity Theft Prevention Naturally, filing early will lessen the chances of someone else stealing your client’s identity and claiming refunds in their name. Solving issues like this can take months or even years. Simply put, filing ahead of the deadline makes an individual less vulnerable to identity theft and other costs to fix the problem.   New Standard Deduction In filing tax returns, you need to choose between itemizing deductions and considering the new and relatively higher standard deduction set forth in 2018. Early preparation of tax returns will help you immediately decide on the most suitable method for your client.   No Penalties Preparing and filing tax returns early provides you the time you need to understand any changes to the tax law. It can also aid with addressing lifestyle and schedule changes that may conflict with your client’s filing status. As already mentioned above, working on tax returns at the last minute can make you more prone to mistakes that inevitably lead to audits and penalties that your client won’t like.   Ensuring a Successful Early Filing Always be honest. If no return needs to be amended, do not resort to correcting it to make things work to your advantage. Early filing can make you miss late-arriving forms. Remember to prepare all necessary documents and statements before clicking “Send” or dropping your tax returns in the mail. Even banks and financial institutions can make mistakes, so you must catch these mistakes before filing tax returns. Check pertinent documents, such as 1099s, interest statements, W-2s, and others.   Conclusion Follow our tips above, and you will definitely reap the benefits of filing tax returns early. If you are looking for the best professional tax software in the US, check out Keystone Tax Solutions. We offer reliable, professional tax software for tax preparers. Purchase now.

10 Reasons Why Startups Should Consider Accounting Software Do you wish to minimize your beginning expenses while increasing your profits? The less you spend on early company expenditures, the more profit you may make in your beginning firm. Cost-cutting measures can help your company in a variety of ways. You may boost your startup working capital by decreasing additional costs. You can potentially use this cash to support other business operations. The best accounting software for startups streamlines your back-office processes and simplifies accounting for your company, allowing you to concentrate on expanding your business. Here are some particular reasons why accounting software may be highly beneficial to companies. Continue reading!   1. Manage multiple projects effortlessly Add tasks to projects and assign them to specific people to perform. Choose suitable charging methods and budgets based on the demands of the projects. Generate project-specific reports to provide a clear view of the time and money spent on your clients’ projects.   2. Invoice customers without a sweat No need for a third-party invoice management system. With integrated invoicing, you can create customizable invoice templates for your clients. It’s a simple process – just enter the invoice details, and it will automatically be submitted to the biller.   3. Keep a clear record of expenses and revenues Track your business expenses and revenues during the month. Invoice expenses to different projects and clients depending on their nature. Get an overall picture of your business finances from the Advanced Budget/Forecast Report.   4. Maximize your cash flow Manage your cash flow within QuickBooks, and maximize your cash flow. Track daily balance sheet figures and get real-time time reports. Get alerts when your banks are about to reach their limits.   5. Get organized with time tracking Tracking time spent on different tasks is crucial to streamlining business operations. Our time tracking tools help you keep a tab on time spent and money earned by your employees.   6. Stay on top of your staff’s performance Accounting software can provide you with a consolidated report of the performance of your staff. Get monthly reports that display the performance of your staff based on the time spent on various tasks.   7. Live on the cloud Most accounting software is SaaS-based, meaning you can access it from anywhere. Be it on the field or from your phone; you can manage your business on the go. You can also get real-time data on your startup’s financial status.   8. Save time with automatic calculation Calculating sales tax, total price, and sales commissions is a breeze with the automatic calculation feature. Accounting software automatically calculates the sales tax based on your tax rate. It also takes care of your sales commissions by automatically calculating them and updating them in your total price, so you don’t have to do the math every time.   9. Get real-time data on your business’s finances Most accounting software offers a dashboard feature that gives you a clear picture of your business’s finances in real-time. It gives you a real-time dashboard of your business’s financial performance.   10. Minimize your tax burden Accounting software ensures you keep track of the tax you owe and what you get refunded. It also allows you to export your tax information to the relevant tax authorities if required. Conclusion If you are looking for accounting software for startups, you must consider your business requirements before picking the right software. As a startup, you will focus on growth and keep your back office operations streamlined. So, avoid jumping in at the deep end. Instead, do your research and find software that offers the best solutions for your business. If you are looking for the best professional tax software in the market today to help you with the numbers, look no further than what we have to offer here at Keystone Tax Solutions. We have our own patented professional tax software for all tax preparers who want to make their work easier in the long run. Call us today for more information about our software and services.

5 Best Practices in Attracting Tax Clients For Accountants  For accountants, seeking new tax clients is one of the most challenging parts of their job. Sometimes, clients come to them without lifting a finger. But most of the time, they would have to actively look for them due to the oversaturation of tax preparers in the market. Therefore, what do accountants need to do to beat their competitors? Here are some ideas.   1. Ensure Good Communication Skills It is not enough for accountants to have technical knowledge of the profession or an extensive network of contacts. They must also have excellent communication skills to have a higher chance of attracting new clients. The ability to listen and speak are some of the most crucial soft skills required in the accounting industry. These soft skills will be helpful in a wide range of interactions, such as talking with clients, business partners, and employers. Therefore, accountants would have to ensure that they have the right communication skills.   2. Study the Competition The competition is always stiff in the accounting industry. However, accountants can differentiate themselves from their competitors by knowing what they are doing. In a way, they can learn from the strengths and weaknesses of their competitors and learn how to use these strengths to their advantage. The first step in this process is to know who your competitors are. You may want to check out their websites to see what they’re doing to get new clients. Also, study how you will secure your clients’ trust and find out how you can be better than your competitor.   3. Build the Firm’s Reputation A good reputation is one of the most critical factors used to determine whether a business will succeed or not. For example, most successful startups are respected in the business community. Building a solid reputation is very important for accountants if they want more clients. They can achieve it by being in the industry for a long time and providing excellent services.   4. Use a Professional Tax Software You can increase your chances of gaining new clients by using business tax software. A client who has used tax software will become more loyal to it because of the convenience. If you have a loyal client, you have a higher chance to secure the client’s trust. When tax season comes around, your accounting firm must have software to help you with your accounting. Tax software can reduce the amount of time you spend on your accounting tasks, allowing you to focus on more profitable aspects of your business.   5. Gain the Clients’ Trust When a client trusts you, there will be a higher chance that they will continue to use your services. Trust is one of the most critical factors in securing new clients. Many people will continue to patronize a particular business due to their trust in it.   Conclusion There are many things to consider when trying to get new clients. One of the most crucial things to keep in mind is that accountants are in a competitive industry. Therefore, they should look for ways to differentiate themselves from their competitors. Other than that, it is also essential to ensure good communication skills and to learn about your competitors. There are many benefits for accountants to get new tax clients. A recent tax client will likely use your services again in the future, leading to the growth of your business. Keystone Tax Solutions offers the best professional tax software to help accountants get ahead of the game. We hope to make the job easier and more accurate through our software for tax preparers to ensure client satisfaction. Check out our all-in-one package today and win clients over your competitors today.

As tax preparers, you are responsible for calculating, preparing and filing income taxes on behalf of our clients. To support this responsibility, you should also be aware of the different changes made by our government regarding other tax laws.   The Income Threshold Increase If your investment income exceeded the annual limit, you could not claim the EITC, historically speaking. In 2021, the limit was increased significantly. From $3,650 in 20210 to $10,000 in 2021. This will make investment incomes’ limit to be raised annually. You can check on your software for tax preparers to assist you.   Married but Separated and Filing Separately Another change broadens eligibility for married people divorced from their spouse and file separate tax returns. They must have lived with a qualifying child for at least six months of the year, but they are not required to claim the child on their tax return. Previously, a taxpayer had to have a qualifying child and have lived apart from their spouse for at least six months if they were married filing separately. However, changes have been made, they can qualify even if they have not lived separately for up to six months if they are under a separation instrument  They may still be eligible if separated and do not share their current residence with their spouse.   Changes in Using Prior Year Income If their 2019 income was more significant than their 2021 income, taxpayers in 2021 could still claim the EITC based on their 2019 income. However, they cannot use their 2020 earnings for filing.   Changes in the Child Tax Credit The 2021 Child Tax Credit has received a lot of attention in the media because of the new advance payments, but it has also changed significantly in other ways. The Child Tax Credit is now refundable to $1,400 per child, with a phase-out at $400,000 in income for married couples and $200,000 for single filers. The refundable amount is calculated as 15 percent of earned income over $3,000.   Changes in the Recovery Rebate Credit In 2020, the Recovery Rebate Credit was introduced, allowing taxpayers who had not previously received stimulus payments to claim them as a refundable tax credit. In connection with the third round of stimulus payments, which began in April, some of your clients may be eligible for a recovery rebate credit in 2021. Depending on the taxpayer’s filing status, the Recovery Rebate Credit can be worth up to 35 percent of their earned income in 2019, with a maximum credit of $1,400 for a single tax return and $3,000 for joint returns.   Changes in the Earned Income Requirements In 2021, the earned income requirements will be removed entirely. To be eligible for the CTC, taxpayers no longer need to have earned income or any income at all. After that, they will receive the maximum $3,000 credit every year, regardless of income. In essence, it will no longer be a work credit. Instead, lawmakers hope that the refundable credit will replace the EITC, making the income tax code fairer and more progressive.   Increased Maximum Benefits and Income Individuals will receive up to $1,502 in benefits in 2021, up from $538 in 2020. Individuals’ maximum income will be $21,430 in 2021, up from $15,820 in 2020.   Conclusion Keeping up with changes to the tax code for 2021 has not been an easy task. Significant changes are made to several areas of tax law, most notably refundable tax credits. Maintain an eye out for changes to the various regulations and incorporate them into your clients’ returns. You can look up the best professional tax software to optimize your business. Keystone Tax Solutions is the industry’s leading professional tax preparation software for you and your clients. Contact us and learn more.

Preparing Tax Return you Begin It’s never too early to start planning for your 2021 US Preparing Tax Return, which is due on April 18, 2022. To submit your Preparing Tax Return, you’ll need specific information and documents, regardless of whether you do it yourself or hire a professional. We’ve come up with a handy tax preparation checklist to make the process less of a hassle for you!   Collect All of Your Paperwork Before you begin, collect all of the forms and documents you’ll need to complete your return. It’s a great idea to gather paperwork throughout the year and then place them in a designated folder. You can always refer to this folder if you need information from a previous year, too. Here are some of what you’ll want to save: W-2 from each employer 1099 forms SSA-1099 for Social Security benefits 1095-A for Health Insurance Marketplace reimbursements 1098 for mortgage interest received 1098-T for tuition paid   Round up Your Receipts It doesn’t matter whether you itemize your deductions or take the standard deduction; you’ll want to know which generates a larger tax deduction. While filing as a single taxpayer, the standard deduction is $12,550; when filing as a married couple filing jointly, the standard deduction is $25,100. Individuals filing single returns will be able to claim $12,950, while married couples filing jointly will be able to claim $25,900 in 2022. If you want to itemize your deductions, you’ll also need to gather any additional funds you may have set aside for charitable contributions. Ensure that you keep track of any receipts for medical expenses that were not covered by insurance or reimbursed by another health plan. Property taxes and costs incurred with an investment are likewise subject to limitations. You may find more information about charity deductions in IRS Publication 1771, available online. You will be required to submit your books and records, such as QuickBooks or any other accounting system, receipts for spending, and applicable bank and credit card statements, as well as any other necessary documents. Preparing Tax charges less for their services because the more structured your records are, the less time it will take them to file your taxes.   Compile Your Details You need to provide your Social Security number and your spouse’s Social Security number if filing jointly. If you were self-employed in the previous year, you’d have to provide your Federal Employer Identification Number. Tax return information is serious business. The IRS will likely analyze any discrepancies in your tax return, especially if you made an error. This is because it’s essential to ensure your tax return is accurate and complete and minimizes the likelihood of the IRS having to correct your return. This is especially important if you’re self-employed. When preparing your tax return, it’s in your best interest to organize your books and records, so your tax return is as accurate as possible.   Retrieve a Copy of the Previous Year’s Preparing Tax Return Before you begin preparing your tax return, make sure to retrieve a copy of your previous year’s tax return from the IRS. You’ll need it to calculate the cost basis of any capital gains or losses you may have incurred throughout the year. Additionally, you may be able to use this to ensure that your identifying information, such as your Social Security number, is current.   Selecting a Tax Preparation Professional Unless you are confident that you can accurately prepare your tax return, it’s in your best interest to hire a professional to do so. Hiring a tax preparation professional means you’ll need to allow enough time before April 18, 2022. It’s a good idea to start preparing your tax return at least three months in advance if you’re planning to submit a paper return. If you’re planning to file electronically, you may be able to submit your tax return as soon as you receive your W-2 and 1099 forms.   Conclusion Preparing your taxes may be a stressful endeavor, but it doesn’t have to be. By following a simple checklist, you can easily organize your tax return. You can even save time and money by hiring a tax preparation professional to file your taxes for you. Tax preparation professionals typically offer a variety of services to suit your needs. If you are looking for the best professional tax software, Keystone Tax Solutions has you covered. Reach out to us today to learn more about our software, or try a free demo now!

Refundable Tax Credits have always been complex for tax-payers, but the complications arise when it involves complying with the ever-changing laws surrounding them. In America, the country welcomed a myriad of tax law changes in 2021, which we will provide a simple overview below so you can stay up-to-date with your taxes.   Refundable Tax Credits Law Changes in 2021: What You Should Know   Income Limits and a Two-Part Phase Out for the CTC The tax year 2021 will see the return of the phase-out for the Child Tax Credit to $150,000 for married couples filing jointly, $112,500 for the head of the household, and $75,000 for the rest. The credit is now at five percent, which will be available for every $1,000 income up until the threshold reaches $2,000. Keep in mind that the credit will be the same until the income increases their income to the next threshold, which is above $3,000.   Advance Payments for CTC Advance payments will be available for the Child Tax Credit during the tax year 2021 by the IRS. Keep in mind that these advanced payments will need to be reconciled on Schedule 8812, so you may have an excess CTC amount.   Different Take on The Child and Dependent Care Credit 2021 The Child and Dependent Care Credit will be different in 2021. For one, there is a significant increase, though the Credit will be refundable for taxpayers who have lived in the United States for more than six months, while those who stayed in the country for less the recommended timeframe will have a non-refundable credit.   The Consolidated Appropriations Act, 2021 The new law on tax provisions allows American taxpayers to prepare for their taxes for another more year, along with the benefit of reaping extensions on their tax relief provisions, deductions, credits, and more. This was passed as a way to ease the burdens and impact of the pandemic, allowing citizens to get the following: Taxpayers can get $600 advance payments of their tax credit, with an additional $600 for individual, qualifying child; Businesses can also deduct 100 percent on meal expenses for employees; Teachers can now include personal protective equipment as part of their deductibles; For those who claim a $600 deduction for joint filers, you can get an extension of $300 if it’s for cash charitable deductions; If expenses for the Paycheck Protection Program (PPP) loan are paid with forgiven PPP loans, they are considered deductible.   The Bottom Line: The Importance of Keeping Up-to-date withRefundable Tax Credits Laws Tax laws are trying to stay up-to-date with the ever-changing world and society, allowing both individuals and businesses to remain competitive with the constantly changing landscape. The taxation changes we have seen in the last few years are aimed at helping businesses and individuals keep up with the advancements and innovations through tax relief, as well as investment and credit rebates. As a business owner, you might be asking yourself how you can benefit from the tax law changes. One of the things you can do is to find ways to maximize the benefits you get from tax law changes. The best way to do this is to consult the tax experts and professionals who know how to structure your business or company so that your business can enjoy the benefits of the tax laws.   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.

The Top Tax Challenges Faced by CPA’s in the Industry Today Being a certified public accountant (CPA) is not an easy task. Besides the fact that you will have to crunch the numbers from time to time, you also have to contend with many external factors that may affect your computation. That being said, there are also tax challenges that CPAs have to contend with when they are doing their job in the industry. If you happen to be a CPA yourself and you want to prepare against these tax challenges, it would only be appropriate for you to be familiar with them from the beginning. The following are just a few examples.   1. Manage the Tax Risk. Every CPA has to manage the tax risk that their client might have to deal with in the future. This is done to avoid invalidating information on the part of their clients.   2. The IRS Audits. The IRS audits CPAs due to the sensitive information they might have to handle. This means that they have to be more careful when they do the tax computations of their clients, as they might be facing penalties if ever they misuse their clients’ information.   3. Competitors. CPAs also have to contend with the challenges of their competitors. As with any other field, the CPA industry is also tainted with one-upmanship. In this way, CPA firms are always competing for the same clients that they are trying to serve.   4. Technology. The technological challenges have to be considered when CPAs are doing their job in the industry. This is because the innovations that they have to use for their work might not be available in a particular state or country. And if this happens, then it might result in the loss of jobs or miscalculations.   5. Timely Preparation of Returns. CPAs also have to face the challenges of the timely preparation of returns. They have to file the returns within a specific period. Otherwise, they may face major penalties that will extend towards their clients.   6. Software Integration. CPAs have to familiarize themselves with the relatively new concept of software integration. This is because CPAs have to use different applications to do their job efficiently. It is possible that one software application might not be compatible with another, and they may end up with wrong tax summaries.   7. Staffing. Basically, there are times when CPAs have to deal with their own employees. There is a call for balance when it comes to their personnel. This is why they have to fire some of them from their job if they fail to perform well. On the other hand, they also have to hire more people if there is a great demand for their services.   Conclusion All in all, these are just a few examples of the common tax challenges that CPAs have to face while they are doing their job in the industry. These challenges are more technical than you can imagine. It is only appropriate for you to learn how to cope with them to be more effective in your line of work. There is no need to be intimidated by them, though. In fact, these tax challenges might also give you an idea of what you have to do to succeed in the CPA industry. The key is to stay ahead of everyone and enjoy being an experienced accountant in the long run. If you are looking for the best professional tax software in the market today to help you with the numbers, look no further than what we have to offer here at Keystone Tax Solutions. We have our own patented professional tax software for all tax preparers who want to make their work easier in the long run. Call us today for more information about our software and services.

Clients Guide Tax Withholdings Being a tax preparer means serving your Clients Guide Tax to ensure that their financial situation is kept in check, as no one ever likes surprises when it comes to the monetary side of their life. Tax liabilities, for instance, can be quite the deduction for any person or organization and their profit. It’s important to avoid these as much as possible. One steady practice of keeping finances in order is the proper maintenance of one’s Clients Guide Tax withholdings amid different adjustments in their life. Here’s a simple guide on how to handle tax withholdings:   1) Identify the Reason for Adjusting How the Clients Guide Tax withholdings will be adjusted can solely depend on the reason behind the change in the first place and what the shift’s effect will be. There are different processes concerning various adjustments, and knowing the cause will make things easier to organize. For example: Changing Jobs. When losing a job or getting a new one, it usually entails a new source of income. Account for that when preparing taxes by using the IRS Tax Withholding Estimator and filling out the Form W-4 in their stead based on the terms of their job. Getting a Child. Having a new child either through birth or adoption can bring forth a number of tax benefits via the Child Tax Credit. With this further adjustment, shift the withholdings to include a new dependent under your profile. Having a New Relationship Status. A marriage or divorce can change your relationship status and have quite an effect on your tax withholdings. Accommodate those changes, especially before the end of the fiscal year, to avoid issues.   2) Get the Best Software Tools such as the IRS Tax Withholding Estimator can be quite helpful, but there are several calculations that will simply be too difficult for you or your clients. Efficiency is paramount during these times, both in terms of costs and time. To achieve that, be sure to eye suitable technology that will assist you in your tasks. Seek out tax preparation software that would assist you with whatever data that you have and adjustments that must be made. You can cater more effectively to a wider pool of clients with such advanced programs. Getting a client’s taxes in order will provide better customer satisfaction and help with retaining their patronage for your services as well.   3) Start the Adjustments Early As soon as you receive word about the life change that will affect one’s tax withholdings, act as quickly as possible. Get the information from your client so that you can assist them when those shifts are in motion. Following up through emails and arranging in-person discussions can ingrain the tax adjustments quicker in one’s financial records sooner.   4) Work on Client Guide Tax Education Clients may not be aware of how important it is to change one’s tax withholdings in the first place. Be sure to share the benefits and consequences of such attention to detail through client education and proper communication. Be a little thorough when providing information regarding these common life changes and what should be done because of them.   Conclusion When making such important decisions, your clients may not be aware of these practice shifts surrounding their taxes. Although these are common and evident throughout different stages of one’s life, it’s important to accommodate and account for them regardless of fulfilled finances. Looking for the best professional tax software? Keystone Tax Solutions offers professional tax software for tax preparers. Try it out today!

Filing for Becoming Tax Preparer is one activity that most people prefer not to do because it requires a lot of time and effort. Fortunately, there are professionals known as tax preparers who can lend a hand in this matter. If you’re the type of person who enjoys crunching numbers, you may have a prosperous career as a tax preparer. What Are Professional Tax Preparers? The Internal Revenue Service (IRS) defines a tax preparer as individuals or firms who prepare and file a tax return or claim for refund or credit. They do this by going over tax returns, advising taxpayers on tax issues, and even assisting in getting tax returns ready. The profession typically requires additional education and licensing to become a tax preparer. However, some states allow individuals with a high school degree and knowledge of tax law to work as preparers. How Much Do Tax Preparers Make? According to the latest data from the Bureau of Labor Statistics (BLS), the average salary of a tax preparer is around $46,860. Similar to other positions, the pay can increase or decrease depending on the individual’s experience. For example, tax preparers with only a year of experience typically make $11.04 per hour. It increases to at least $12.18 per hour if one has two to four years of experience. It’s also worth noting that salary varies depending on state and employer. What Does It Take to Become a Tax Preparer? If you’re interested in becoming a tax preparer, you must first have the proper credentials recognized by the IRS. You either become a Certified Public Accountant (CPA) or an enrolled agent. A CPA is a licensed accountant with a four-year bachelor’s degree and at least 150 hours of related accounting coursework at a college or university. On the other hand, an enrolled agent is a candidate with at least a four-year bachelor’s degree and a minimum of three years of experience performing specific prescribed tasks, including tax return preparation. What Equipment Do Tax Preparers Need? If you have the right background to start a career as a tax preparer, you then need to have the necessary equipment to perform efficiently. Tax preparers require access to the internet and computer software to complete their job. In addition, you should also consider acquiring a professional tax preparation software. These applications offer features to help you reduce errors and enhance the efficiency of your work. Most software for tax preparers also allows you to record data and process it faster, helping you complete your work in a more timely manner. Where Do Tax Preparers’ Work Include? The best thing about being a tax preparer is that you can work in a variety of industries, including but not limited to customer service, accounting and finance, healthcare and social assistance, and education. However, it’s most common for tax preparers to work for accountants or CPAs. If you’re uninterested in working for others, you can also establish a tax preparation business. Doing so allows you to be your own boss and work alone. Later on, you can collaborate with other tax preparers to accommodate more clients. Why Work as a Tax Preparer? As a tax preparer, you get opportunities to work remotely with most of the equipment you need for the job you likely already own. Additionally, you can also choose to establish your own tax preparation business. Therefore, you have more freedom in determining when to work and the type of responsibilities you take on from clients. Even if you work for someone else, you can still choose the solutions you want to offer. For instance, some tax preparers manage payroll and bookkeeping and provide bank products like settlement solutions. Aside from the services, you can also choose to specialize in tax preparation for people in a particular industry or demographic. Final Thoughts Tax preparers are invaluable to the tax filing process. They assist taxpayers in filing their tax returns and advising them on tax issues. The job pays quite well, and you can also enjoy flexible scheduling and more freedom in choosing the type of work you perform. If you’re looking to get started as a tax preparer and want to use the best professional tax software, consider choosing Keystone Tax Solutions. We offer affordable tax preparation software designed to help you grow your tax business. Try our free demo today!

Are you trying to Maximize Tax Deductions? If so, one of the most important first steps you need to take is understanding the deductions themselves. Only by thoroughly understanding the deductions and credits can you know where to look for these Maximize Tax Deductions and be eligible for them to cut down on your tax. That said, if you’re here looking for ways to make the most out of tax deductions, here’s what you should be doing:   1. Donate to Charities Chances are, you’ve already made a donation to charity. It could be a large donation to your school’s alumni association or to your favorite organization. However, if you haven’t already made a donation, this is the time to do so. This is because the contributions you make to charity can be deducted from your Maximize Tax Deduction. In fact, you get to deduct up to 50% of your adjusted gross income, so long as the charity  you’re making the donation to is a non-profit and the donation you’re making is up to 15% or more of your adjusted gross income. Therefore, if you’re a high earner looking to save money on taxes, it could be in your best interest to donate to a charity that is meaningful to you. Just make sure that you get a receipt for your donations, which will make it easier for you to claim your Maximize Tax Deduction.   2. Contribute to Retirement Accounts There are many tax-advantaged accounts that you could be contributing to—from traditional 401(k)s to Roth IRAs. However, one of the most important accounts you could be contributing to is your employer’s retirement plan. This is because an employer’s retirement plan is a tax-advantaged plan available to employees, which means you can enjoy the benefits of lower taxes and possibly even a tax break for contributing to your employee’s retirement plan. The exact tax break you’ll get will depend on how much you contribute, but the main benefit of contributing to a retirement account is that you can get a tax break on your contributions.   3. Take Advantage of the Child Tax Credit If you have children, you could be eligible for a Child Tax Credit, a credit that is worth up to $1,000 per qualifying child. This helps to reduce the income tax you will have to pay, and it also makes it easier for you to get a refund. To qualify for the Child Tax Credit, you need to make sure that your children meet certain criteria. For one, you need to make sure the child is your dependent. In this case, you’re your child’s dependent if you provide more than half of your child’s financial support. You also need to make sure your child’s age is in line with the tax credit, so your child must be under the age of 17.   Conclusion There are plenty of other ways to maximize your tax deduction, and more so than what we’ve shared today. Regardless, these tips allow you to enhance your tax-deduction benefits, meaning that you can save more on taxes if you follow them. That said, if you want to know more about how you can save on taxes, feel free to reach out to professional advisory services for help. They can go through your finances and see exactly how you can deduct your taxes to enjoy maximum savings. Keystone Tax Solutions offers professional tax software for tax preparers. If you are looking for the best professional tax software to enhance your tax preparation efforts in the US, check out our software today!

There’s nothing business dread more than having to deal Behind Tax Audit. One of the most important tax-related statements you cannot miss out on is your IRS audit. An IRS audit is an examination or review of your or your organization’s accounts and financial information. This ensures that all the information you reported correctly follows what Happened Behind Tax Audit laws and guidelines to verify that the taxes you submit are correct. Fortunately, even financial professionals can get some help with this thanks to Keystone Tax Solutions, one of the best professional tax software to help individuals compute their taxes and prepare for waht Happened Behind Tax Audit season. If you’re asked to present a Behind Tax Audit, but you’re unsure of what it is and what to do, keep reading. In this article, we’ll share everything you need to know about tax audits and what really happens. Let’s take a look!   Why was I Selected for what Happened Behind Tax Audit? Don’t worry; if you’re selected for an audit, you should know that it doesn’t always suggest a problem. Below could be the following reasons: You may have been randomly selected. This is often based on statistical formulas when your Behind Tax Audit is against the “norms” of similar returns; You may have been chosen based on related examinations that involve issues or transactions from other taxpayers, like your business partners or investors; After knowing the reason, an experienced auditor will review your return. During this time, the auditor may accept it or find things questionable. If it’s the latter, they will identify the items noted and forward the return for assignment to a group of examiners.   How Will I Know If I’m Being Audited? Usually, the IRS will notify you by mail. You should note that your account is selected for what Happened Behind Tax Audit; the IRS won’t initiate an audit via telephone.   How Does the IRS Conduct an Audit? The IRS manages audits through mail and in-person interviews to review all your records. This interview may be done in the IRS office or in the taxpayer’s home, business, or accountant’s office. However, please note that the IRS will first contact you via mail and provide you with instructions. If an audit is conducted via mail, the IRS’s letter will request additional information about certain items in your tax return, such as your income, expenses, and itemized deductions. However, you can request a face-to-face audit if you have many books to mail. Seeing as you’ll need to work with your past records for an audit, it’s important to use the best professional tax software to ensure all tax information and items are complete. This will help make the audits faster and accurate.   How Long Does an Audit Take? The length of an audit will vary depending on the type of audit, the complexities of the issue, the availability of the requested information and parties, and your agreement to have your information audited.   The Bottom Line: Streamline Your Audits With the Best Professional Tax Software There’s no doubt that agreeing to an audit can be daunting and overwhelming, but the best way to take some weight off your shoulders is by using the best professional tax software to streamline computations and more. Thankfully, software like Keystone Tax Solutions is readily available for accountants and individuals, so working and preparing for your tax will be much easier.   How Can We Help You? Nothing’s more complicated and nerve-wracking than having to prepare for a tax audit. Because of this, you need to work with the right tools, like the best professional tax software, to help you with the job. Keystone Tax Solutions is an affordable tax software designed to help elevate your tax process. Our 100% cloud-based technology allows you to manage your documents, create unlimited federal and state returns, provide exceptional customer support, and more. Learn more about how we can help you today!

Tax Software Accountant for Individual Taxes With every critical job comes whether or not to do it yourself or hire a professional. Even though tax preparation Tax Software Accountant has improved over the last few years, Certified Public Accountants (CPAs) and other personal tax preparers are still in demand. Still, many people are torn between these two choices. This article examines the pros and cons of getting tax software or a professional accountant to do your individual taxes. The Benefits of a Tax Software Accountant   1. Cost-Effective The main benefit of using tax software is saving you money. Some tax software comes with free updates for life. This means worrying about filing your taxes every tax season is not necessary.   2. Time and Convenience Tax software allows you to complete your taxes by yourself without going to a tax preparer. This is incredibly convenient if you are not fond of getting an appointment with your tax preparer. You also do not have to worry about any human errors due to higher levels of accuracy.   3. User-Friendly These programs are user-friendly and very easy to use. You will spend less time preparing taxes because the software does most of the work for you. Most of the preparation and math are done for you when filing returns. Additionally, the software will do a lot of the number crunching. Your choice depends on how much time you want to spend preparing your taxes and your preference for preparing your taxes on paper or a computer.   4. Can File Multiple Tax Returns Tax preparation software is also helpful for those who need to file multiple tax returns. Suppose you are a freelancer or independent contractor. In that case, you may need to fill out an additional Form 1040 Schedule C. With tax software, it is easy to file multiple tax returns without completing other forms.   5. On-Demand Access Tax software is accessible at any time, on the internet, and can be used anywhere. Because you no longer have to go to your tax preparer, this is a good solution if you are too busy. In addition, with the software, you can go back and input your tax documents as they come in, making the preparation process simpler.   The Benefits of an Accountant (CPA) 1. Better Accuracy In general, a tax preparer is more accurate than software. This is especially the case if you are filing multiple tax returns. CPAs are more knowledgeable than tax software, as they have years of experience when it comes to filing taxes. Also, CPAs will be able to answer your questions and concerns as you prepare your taxes.   2. Personalized Service Hiring a tax preparer gives you the advantage of discussing any questions or concerns you may have with the tax professional. This allows you to get the best service and ask any questions or concerns. In addition, you can discuss your taxes with a person while tax software is unable to do so.   3. Special Circumstances If your circumstances are different from others, CPAs have a better chance of helping you with your taxes. For example, if you are self-employed, you can take advantage of the services offered by a professional tax preparer.   Conclusion For most people, tax software will be the better choice. However, if you are self-employed or have unique circumstances, a CPA may be a better option. In the end, your decision will depend on your personal preference. Keystone Tax Solutions provides 100 percent web-based, technology-driven, affordable professional tax software for tax preparers. Our All-In-One Software Package is designed for small and large tax offices with multiple branches and many employees, most popular for tax offices with 50-500 clients. This package also includes all 1040, Sch C, and state. Stop overpaying in hidden fees and overpriced software! Get our tax pro software now and enjoy a free demo today!

What You Need to Know about the Audit Protection Process An audit defence strategy works by shielding you from the dangers and stress of dealing with the IRS or a state tax agency on your own. Audit Protection process also ensures that auditors are held accountable for their findings. If you owe any taxes at the end of your audit, a team of tax experts will do their best to get you the lowest amount feasible based on your facts and documents. Being audited may sound overwhelming, but you don’t have to worry about it when you have a team of tax experts on your side to help you with the following:   Planning In the midst of a tax audit, you want as much assistance and counsel as possible. We’ll examine for any possible mistakes or omissions, and we’ll explain why the audit was necessary. When it comes to proving your income, deductions, or dependents, we know exactly what the examiners are looking for. Even after the fact, proving your spending might be a challenge. In order to avoid a lengthy audit, avoid submitting sloppy and unorganized records. A solid foundation for your documentation is the best technique in virtually every situation. One chance to create a good impression is all that is given.   Organizing Getting ready for an audit starts with a thorough reading of your notice and specific instructions on what documents to gather. For an audit defence case to succeed, you will need to sign a Power of Attorney designation or permission form(s) to make the representation official. Because email is not secure, it is not used for private correspondence. We work with you to get the papers back to us in a timely way because the tax office usually has a deadline for submitting them.   Delivering Results When it comes to the quality of the job we do on behalf of our members, it’s clear that we genuinely care about them. For incredible value, we provide top-notch service at a reasonable price. The best-and-worst-case scenarios we can provide are as accurate as any crystal ball we may possess, but we can’t predict the future. We will do everything in our power to ensure that you receive the best possible outcome in your audit protection process case.   Conclusion Due to filing and reporting mistakes, or accidental omissions, audit changes on a self-prepared tax return are unavoidable. It’s a good thing that there are several situations in which additional taxes imposed by an audit can be fought back. Your tax expert can assist you in minimizing non-compliance fines in the event that an error cannot be remedied. With an audit protection process service, you may reduce some of the stress associated with receiving a notification from the IRS. There are no issues as long as you have it and adhere to the IRS’ requirements. At Keystone Tax Solutions, we offer a professional tax preparation software that can help protect you from audits. We know how stressful it may be to handle taxes, which is why we’ll take care of the paperwork for you. Contact us now!

If you understand and enjoy navigating the world of tax preparation and realize that you have the passion for helping others fix their tax concerns, then perhaps, starting a tax preparation business is the right one for you. Not all are gifted with this interest in the industry. So, if you want to take advantage of this fascination and decide to start a business after all, here are the steps you need to take to bring the idea to life.   How to Start Your Tax Preparation Business   Step 1: Prepare Your Requirements for Tax Preparation Business Registration The first thing you need to do is prepare your state, local, and IRS requirements. Documents you need to submit for startup include: Your business name Information for your legal entity Other information, such as your contact details and social security number If you have never opened a business before, you need to register your entity. That means you have to decide whether you want to do business as a corporation or a Limited Liability Company (LLC). You need to establish your business address, open a business bank account, and make sure that you have enough money to maintain your business before you start.   Step 2: Obtain Your Preparer Tax Identification Number (PTIN) Next, you need to get a preparer tax identification number (PTIN) to begin your tax preparation business. You must have this identification before registering with the IRS and be allowed to prepare taxes and enjoy the tax preparation business. The IRS allows all licensed attorneys, certified public accountants, enrolled agents, and tax practitioners to obtain this PTIN. You also need to gain a PTIN if you offer tax preparation services as an individual. Also, if you’re planning to hire employees to work on your behalf, you need to make sure they have their own PTINs too. You can get a PTIN at the IRS website.   Step 3: Get an Electronic Filing Identification Number (EFIN) If you are doing your business online and have already established your website, you need an electronic filing identification number (EFIN). It is an identification number that the IRS gives to individuals involved in e-filing. You can get an EFIN in several ways; you can fill out an online application and pay a $50 fee or call the IRS with your credit card details. Make sure you have an EFIN when you register for a PTIN. The EFIN is also needed to file state and local tax returns electronically.   Step 4: Establish Your Business The final step is to open your tax preparation business. You need to ensure that you are ready to greet your clients and respond to their tax preparation needs. That will require you to have a location to operate from and an office that meets all the registration requirements. Your business location must be in an accessible site where clients can easily find it. Or you can also opt to work from home and start your business online. More importantly, you need to advertise your business and make sure your clients know your services. That will help you build your reputation, which will, in turn, attract more clients.   Conclusion Starting up a tax preparation business is not as hard as it seems. The most important thing is to ensure that you meet the requirements and enjoy the benefits of being a tax preparation business owner. As long as you work hard and are willing to learn, you can succeed in your new venture. If you still need more help in starting your tax preparation business, like finding the best professional tax software to speed up your work, you can check out Keystone Tax Solutions. Our tax software is easy to use and can help you prepare taxes in just minutes. Try it today!

In the first part of this series, we introduced the number of ways to begin easing your clients into using IRS resources come the tax season. Now, let’s go deeper into the process. Here’s part two of how to prepare your client for using IRS resources! Follow a Strict IRS Checklist The Internal Revenue Service’s Tax Preparation Checklist, according to IRS.gov Publication 5349, claims that year-round tax preparation is for everyone. It presents a straightforward and visually appealing collection of tax planning tips for people for different tax brackets to easily understand. Publication 5349 emphasizes the need to keep proper tax records. Through effective record-keeping strategies. For this reason, Publication 5349 enumerates a list of relevant documents, such as year-end W-2s from employers, 1099s from banks, other income statements and records, and virtual currency transaction data for you to take note of Reviewing publication 5349 can help you create your own list of papers to request from consumers. Customers should start organizing their documents as soon as possible before calling you for tax preparation and planning services. Thankfully, a tax preparation checklist can be found in IRS Publication 5349 as a quick reference guide for preparing a tax return. Remind clients to bring these items with them when they come in for their tax preparation appointment. Provide a Compliance Kit Using IRS Publication 5349, you can create your own tax preparation checklist. You may choose to develop many checklists to meet the needs of various clients. There are checklists for individual taxes, corporate clients, and charities or nonprofit organizations, among others. Your checklist does not have to be as long as the one in Publication 5349. That is only a high-level overview of the most prevalent requirements. Individual taxpayers should keep the following goods on hand: The prior year’s tax return All family members’ SSNs and birth dates Identity with a photograph (driver’s licenses, passports, and military identification) Schedule K-1 of Partnership Income on Form 1065 Bank and financial records W-2 forms were provided by their employers. 1099-K 1098 IRS Forms for Child Care (Mortgage Interest Statement) Additional details on property taxes Expensive receipts (medical, childcare, etc.) Receipts (if applicable) For business taxpayers, remember to include the following: Return for the fiscal year preceding Employee Identification Number (EIN) Partnerships in P&L (if applicable) Data on ownership shifts (if applicable) Bank and financial records Receipts (if applicable) Acceptances of capital assets When producing a tax compliance package for your clients, include reference materials to new tax year developments. This year, you’ll have to explain the American Rescue Plan Act and the Consolidated Appropriations Act. Discuss Major Life Occurrences Each customer is unique, and you should treat them as such. This requires being aware of major life events that have occurred or are currently taking place. Life events might have an impact on tax returns, according to the “Managing Your Taxes After a Life Event” page. Thus, comprehending your client’s experience and applying it to their tax returns is simply good service. Although delicate in nature, you can also talk to your clients regarding this matter. The following are examples of taxable life events: Marriage Divorce/separation Becoming a parent Changing careers Employment loss Bankruptcy\s Natural Disaster Serious health concerns First-time homebuyers who are relocating A family member has died. Conclusion In today’s modern age of digital technology, tax experts can now employ a professional tax preparation software to make things easier. This means that you can educate and work with any client seamlessly when it comes to taxes, policies, and using IRS resources. So, there’s no need to worry! You can be ready and seasoned just in time to prepare your client for the next tax season. Backed with almost 20 years of experience, Keystone Tax Solutions is a leading firm that helps tax professionals start their own businesses and thousands more obtain access to cheap technology-driven software for tax preparers in the US. With us, you can develop a profitable tax practice. Get a FREE demo today!

As a tax expert, you are in charge of preparing your clients for the annual tax season by using IRS resources. This usually involves holding productive meetings wherein you can explain everything about a tax return so that your client can understand the situation clearly. After all, if you and your client are on the same page then you can deliver better service! Managing this crucial part of the preparation process can prevent mistakes, misunderstandings, and other issues. Moreover, this is also the time wherein you can craft a strategy with your client. With clear understanding and mutual trust, you can also further educate your clients about tax policies. Read on to discover how to prepare your client for using IRS resources.   Set Expectations In Using IRS resources At the earliest time possible, set your client’s expectations. This way, they are aware of what they will and will not receive when it comes to working with you. Avoid future inconveniences by clearly stating what your services do and do not cover. To be able to engage effectively with your clients, it’s vital that you stick to a consistent communication and scheduling system.  Additionally, you can determine your customers’ preferences and make an attempt to tailor your workflow around their needs. You must also, of course, supply your contact information through various channels. You can also instruct your clients on how to reach out to you. For example, emails can be used for file sharing and formal conversations. Meanwhile, calls or text messages can be used for immediate responses and urgent cases. Aside from this, you can set up a customer portal or a website to upload any essential electronic documents.   Provide Instructional Tools When it comes to explaining tax forms to your clients, make it fun, engaging, simple and brief. Thus, you can use educational tools such as handouts and videos to properly outline the critical information they should be aware of. Moreover, these tools can be provided digitally or be given as printed materials. Some customers would prefer to watch instructive films rather than receive leaflets. Consider making a short video that explains how to comply with income or corporation tax rules. If not, you can find a YouTube video that could serve as the teaching tool. Either way, this undoubtedly improves your consumer engagement using IRS resources.   Gain Access to Shareable IRS Resources Fortunately, the IRS.gov website provides a variety of free tax law and regulation information that is accessible to everybody with internet connection. As a tax expert dealing with clients, this is the most dependable source you can find today. For example, Publication 5349 (download here) contains a free digital handout that you can distribute to your clients. It explains how to prepare to file taxes for the following year. The following topics are covered in IRS Publication 5349: ITIN Refunds Received Acceptance of e-filing possibilities Changing the mechanism of withholding taxes Obtaining an estimate of one’s tax liability Credits and deductions Unemployment benefits Keeping your data safe To add, information about the 2020 Economic Impact Payments (EIP) and how to apply for a Recovery Rebate Credit has recently been uploaded on the official website for your reference.   Conclusion Taxes are not as simple as they seem. This is why people hire experts or employ professional tax preparation software to guide them through the dreaded annual tax season. So if you encounter a clueless client, keep these steps in mind as you guide them through the process. With the proper tools, communication and patience, and discipline, you will be able to best prepare your client on how to use IRS resources! 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!

Many business owners have started to understand that managing finances manually would not help them achieve the expected results. As a result, they have begun to look into reasons accounting software that would help them manage their finances more efficiently. But before deciding to implement professional tax preparation software or general reasons accounting software, you should first understand how it works and how it can benefit your business. Furthermore, you should also determine if it meets all your requirements, including those of your employees.   What Is Accounting Management? Basically, accounting management is an automated method used in recording, storing and processing information related to finances. This includes any business transaction done in and for the company.   Why Should You Use Accounting Management Software? If you have been managing your finances manually for a long time, you will see the benefits of using accounting management software. In fact, you will see how it can benefit your business in the following ways:   1. Time Efficiency When using a general accounting system or professional tax preparation software, you can save time and energy. This is because the automated system will do most of the work for you. All you have to do is to enter the data, and the software will do the rest.   2. Accuracy The automated systems provide accurate data. In fact, you can rely on the data that it provides as it is based on the format that the government agencies use. Therefore, chances of errors are reduced.   3. Better Decision Making When you can have an insight into your company’s performance, you will be able to make better decisions. This is because you will be able to understand how your company is doing.   4. Less Stress There is less stress because you will not be stressed out when trying to manage your finances. This data can then be used by the business owner and other people involved in the management of a particular business. This helps them to make well-informed decisions when it comes to managing their finances.   5. More Accurate Financial Forecasts With the use of 7 reasons accounting software, business owners and decision-makers will make much more accurate financial forecasts. This is because they will be able to manage the information accurately to make the forecasts more accurate.   6. More Time The use of automated software can help you to have more time to do other things. This is because you will be able to manage your finances on your own without any help. 7. Lesser Errors When you are trying to manage your finances manually, there is a high chance of errors. This is because you might enter the wrong data or forget to make a specific entry. But, with the use of accounting management software, there is less chance of errors. Conclusion After you have decided to use accounting software, the next step is to choose the one that will suit your needs. There are lots of software available in the market, and it can be difficult for you to select one. However, you should remember that it should be able to manage your company’s finances properly. You also need to decide whether you’ll get dedicated software for different functions or just one that offers general features. For instance, you might want professional tax preparation software for that specific function and little else. The person who handles that task will only have to use that particular software, and they won’t be confused by other features that they don’t need. If you are looking for the best professional tax software for your tax preparers, Keystone Tax Solutions is for you. Reach out to us today to know more about our software or try a free demo now!