Our Tax Services
Preparing your own income tax return can be a task that leaves you with more questions than answers. According to a released by the US Government’s General Accounting Office, most taxpayers (77% of 71 million taxpayers) believe they benefited from using a .
Preparing your own income tax return can be a task that leaves you with more questions than answers. According to a study released by the US Government’s General Accounting Office, most taxpayers (77% of 71 million taxpayers) believe they benefited from using a professional tax preparation.
Whether we like it or not, today’s tax laws are so complicated that filing a relatively simple return can be confusing. It is just too easy to overlook deductions and credits to which you are entitled. Even if you use a computer software program there’s no substitute for the assistance of an experienced tax professional.
With our professional tax services here’s what you get…
- Your tax return will be checked and rechecked by our computer software identifying potential problems the IRS may look at more closely and reviewing the math to limit IRS contacts.
- Your tax return can be filed electronically so you will get a refund back quicker.
- Our staff will show you how to adjust your payroll withholding to get more money back each week. Why give the IRS an interest free loan for up to 16 months?
- We will show you potential deductions to limit your tax liability for next year. In addition, we will give you a sheet of commonly overlooked deductions to limit the following year’s tax liability.
If you own a small business and haven’t kept up your bookkeeping, don’t worry. We can help you. We’ll prepare your bookkeeping for the year, prepare a full Schedule C, as well as your personal income tax return. Then we’ll help you set up an easy system that allows you to keep your books in tip-top shape next year.
Do you Qualify For Resolution Tax Services?
CPA Phoenix offers tax relief services to help Arizona taxpayers get back on their feet when they are faced with outstanding tax debt. We offer an exclusive 3-step Tax Relief Process that is designed to make it as simple, quick and painless as possible for taxpayers to resolve their outstanding tax obligations.
Many people have fallen behind on tax payments or have been faced with an inability to meet their tax obligations to the IRS or the taxation authority in the state in which they live. U.S. tax laws are extremely complicated and many people encounter situations in which they owe more than they can afford to pay and don’t know where to turn.
If you are facing difficult financial circumstances and tax debt, you may feel like you don’t have many options. The government can be aggressive in its collection efforts, garnishing your wages, placing bank levies or liens on your home or other assets, and making you feel intimidated because you don’t know how to deal with the situation.
The good news is that by utilizing the services of a reputable tax relief company like CPA Phoenix, you may have more options than you may think. Our team of experienced tax resolution professionals, with over five decades of combined experience, can provide you with the advice and guidance you need to achieve the most attractive IRS tax settlement arrangement possible.
Our tax experts have a proven track record of favorable tax resolution achieved through a solid process of negotiating with the IRS and coming to agreeable tax settlements. We strive to improve every taxpayer’s situation with the IRS while focusing on customer service as a top priority. We are dedicated to operating with the utmost in honesty, integrity, transparency and compassion.
Our tax relief services include tax consultation, tax negotiation, tax preparation, tax resolution and tax settlement. Each stage of the process is designed to bring you in compliance with the IRS by settling your outstanding tax obligations.
Local Tax Services
Sales Tax vs Privilege Tax
Phoenix does not have sales tax, instead we have a privilege tax for the privilege of doing business with the City. The terms Sales Tax and Privilege Tax are used interchangeably, however. A privilege tax takes the burden off of the consumer and places it on the business owner. If your business is required to collect “sales” tax from your customers, you are responsible for remitting a sales tax report (based on your gross taxable sales minus deductions) with a payment on a monthly, quarterly or annual basis- depending on your filing requirements.
If you buy products to resell or for use in a project, you may be eligible to purchase products with no sales tax. You must have an Arizona Form 5000 on file with the vendor you are purchasing with in order to receive the benefit of not paying tax. Nonprofits, however, are not eligible to use this form and are required to pay sales tax on all purchases. As a vendor, you should keep this file on file for 6 years in the event you are audited. Be sure that the form is filled out completely and that the contact and entity information are correct. If the business changes locations or entities, the form becomes invalid and you may be subject to the tax that went uncollected.
A good rule of thumb when deciding whether or not to pay sales tax at the time of purchase is to consider who the final consumer will be. If you are purchasing products as the final consumer, then you should pay tax. If your client will be the final consumer, they should pay tax. If you purchase a product tax free with the intention of reselling it or incorporating it into a project, but then consume it within your business, you should pay use tax on it.
This may be a little confusing. The difference between sales tax and use tax is sales tax is paid by the seller, but use tax is usually paid by the buyer. Let’s pretend that as an owner you buy inventory tax free because you intend to sell it at a later date. If you pull this inventory item off of your shelves and consume it within your business, you are responsible for paying use tax on it. Here is a fancy pdf about Use Tax.
Sales Tax Return
If your business is required to collect tax from your customers, you must submit a sales tax report with payment on a monthly, quarterly or annual basis. Timely payers get the benefit of infrequent filing, so remember to file on time. You may request a change in filing frequency after you have established a minimum of 6 months of reporting history. After you obtain a sales tax license through the city, you will begin to get pre-populated sales tax forms in the mail. You may opt to fill these out and mail them back or e-file. E-filing is a more convenient way to pay and you can submit the form and payment online up to 11:59pm the day the form and payment are due.
If you collect more tax from your customers that necessary, you unfortunately do not get to keep it. You must remit it back to all taxing entities (City, State, County if applicable) or the customer (if you can identify them). You and your bookkeeper should double check your Quickbooks file to make sure you have set up your clients and item list properly. For instance, you should not be collecting sales tax for clients that reside in places you don’t have nexus in. If you don’t have inventory, sales people, or a large amount of clients in the state in which they reside- do not collect sales tax. You may also provide goods and services. You should ensure that you are only collecting sales tax on your goods and not the services. Again, working with a super smart bookkeeper will save you a lot of headaches come tax time.
Penalties and Interest
If, for some crazy reason, you fail to file and pay on time, you are going to get hit with penalties and interest. In fact, your penalties may be as high as 25% of your total tax due. Don’t fret over interest calculations, our friends at the City of Phoenix will do that for you. Just send in your payment and wait for a notice to arrive in the mail. When this arrives, please pay this on time to avoid further charges.
Did you get a notice in the mail that says you have a credit on your account? Before spending your new found dough on penny whistles and bubble gum, give the City of Phoenix a call and see why you have a credit. Your account may have been accidentally paid by another taxpayer. If this is the case, once the error is corrected, you may owe the money back. First rule when dealing with credits: Call First!
Did you make a sale and fail to collect tax? Did you include tax in your final price? Are you a contractor who does not itemize tax on your invoice? Factoring tax might be just what you are looking for. As a contractor, this form is incredibly helpful. If you are factoring tax in any other industry, check this link.
As a business owner, you are required to keep your tax filings up to date. Don’t wait until the last moment to ask questions- use your resources to get the help you need. Your accountant, bookkeeper and the City of Phoenix are here to help so please reach out when you need us.
Finally, while this post covered the City of Phoenix, don’t forget about other taxing entities. You may owe taxes in other cities or even other states. Your bookkeeper or accountant will help you make sense of your tax filing requirements.