This is the time of year when businesses, both for profit and non profit are getting ready for the auditing process and preparing for filing their taxes. And while many people think of large profitable corporations when it comes to auditing and filing taxes, the fact of the matter is that non profits are carefully watched as well. In fact, the audit process for a non profit can be as time consuming and detailed as it is for a large corporation.
In a church setting, for instance, there may be a church council and a treasurer who work with the pastors to make sure that all funds are correctly accounted for, but there is also an auditor who will come in and complete an outside examination of the accounts as well. Tax and audit services are preparing for an even more complicated year than normal as they prepare to understand the changes to the tax code. And while not all of the changes from the new Presidential administration will be in effect this year, even upcoming changes require a detailed understanding of what the implications are.
Tax preparation services are especially important if you want to make sure that you are following the letter of the law and are making sure that you get your papers filed and any necessary fees paid by the deadline.
Consider some of these facts and figures about the audit and tax industry and the reason that so many businesses and non profits contract with a professional to complete these necessary financial steps:
- Corporate income taxes comprised 11% of the taxes collected by the federal government in the year 2015.
- Corporations with assets of $10 million or more are required to electronically file their 1120/1102S income tax returns.
- Research and development tax credit can amount to up to 13.5 cents of credit for every qualified dollar.
- In addition to collecting back taxes owed for up to 10 years, the IRS can audit any business tax return within three years of filing.
- If an individual fails to pay the taxes or underpay the taxes owed, that person will be charged 5% to 25% of the unpaid tax each month. These civil fraud penalties refer to penalty for underpayment of tax that results from a fraudulent activity.
The beginning of a new year means that it is time to get all of your financial records in order from the previous 12 months. Finding a certified and trusted audit and tax preparation team can help you make sure that you are ready for the filings that you will need to make.