Tax preparation is the process of preparing tax returns to be filed with the IRS, state or both, depending on which state in which you live or the in which business is located.
Taxes may be completed by the taxpayer or a tax professional. Because tax laws in the United States are considered extremely complicated, many taxpayers use outside assistance with tax preparation.
Some states require licensing for anyone involved with tax preparation for a fee. In 2011 the IRS mandated the requirement for national registration of paid tax return preparers in the US. Effective January 1, 2011, new rules regarding tax preparation require the registration of almost all paid federal tax return preparers. Some paid preparers must pass a national tax law exam and must undergo continuing education requirements. CPAs and attorneys are licensed by their state and are subject to state-mandated continuing education requirements to maintain their licenses. EAs (Enrolled Agents) are
The IRS defines a “tax return preparer as an individual who, for compensation, prepares all or substantially all of a federal tax return or claim for refund.” All tax return preparers are required after December 31, 2010 to have a practitioner tax identification number (PTIN). Beginning in mid-2011, tax return preparers (other than CPAs, attorneys and enrolled agents) are required to take and pass a tax preparation competency test to become a registered tax return preparer officially.
WHEN TO FILE
January 30 is the first date of each year that the IRS will accept and process tax returns for the prior year. April 15 is the due date for most individual taxpayers to file their income tax returns.
WAYS TO FILE
Most businesses and individuals e-file their tax returns to the IRS. Software packages and service providers allow free electronic filing of federal and/or state returns for all customers who pay for tax preparation. Some services may e-file a tax return that you prepared yourself for a fee—this is called a Transmit-Only Return. Remember that you must have a valid tax identification number (Social Security number or Individual Taxpayer Identification Number) for every person or business on the return to qualify for electronic filing.
You can still file your tax return on paper through the mail, but the processing time and chances for error increase because data entry technicians must enter your return into the IRS computer system.
An e-filed return is considered filed on time if the authorized electronic return transmitter postmarks the transmission by the due date. The date and time in your time zone controls whether your electronically filed return is timely.
A paper tax return is considered filed on time if it is mailed in an envelope that is properly addressed and postmarked by the due date. If you send your return by registered mail, the date of the registration is the postmark date. The registration is evidence that the return was delivered and your tax preparation timing was successful. If you send a tax return by certified mail and have your receipt postmarked by a postal employee, the date on the receipt is the postmark date. The postmarked certified mail receipt is evidence that the return was delivered.
If you do not file your return by the due date, you may be subject to a failure-to-file penalty and interest. To avoid penalties and interest, you should file for an extension by April 15, which gives you until October 15, to file your tax return. Businesses must file extensions by March 15, giving them until September 15, to file tax returns.
If you are due a refund but did not file a tax return, you must file within three years from the date the return was originally due to receive your refund.
Protaxion have tax preparers ready to help you with your tax returns. If you have issues with the IRS or your state taxing agency, Protaxion is available to help you. Call for a free consultation.
Call +1 833-776-8291 or Click HERE!
LET’S GET STARTED!
Having a team of dedicated tax professionals on your side is a powerful position to be in when managing a tax matter with the IRS, and we look forward to helping to put you in a winning position to succeed.
REQUEST A FREE CONSULTATION
*By submitting your information, you are agreeing in our Terms & Conditions