Paying taxes is the responsibility of every citizen, business and legal entity that operates in the country. Taxes are paid on income, whether in terms of interest, sales, dividends, salaries or profits. Tax is calculated and paid to the IRS on a regular basis and taxpayers are required to file their returns every year. When in need of tax preparation Atlanta GA residents should find the best service provider.
Failure to pay tax has serious repercussions. For instance, there are fines and penalties associated with late payment and non payment. Furthermore, the IRS would have to audit your accounts to ensure there is nothing criminal about your non payment or late payment of taxes.
The tax rates applicable on the different types of incomes differ greatly. For instance, withholding tax on dividends, capital gains and interest income are usually subjected to the lowest rates. On the other hand, business income and employment income are subjected to the highest tax rates.
Taxpayers qualify for a wide range of tax credits and deductions. For instance, they can get a huge tax credit for acquiring and installing an Energy Star water heater, air conditioner or heating system. Paying tuition for yourself, a spouse or kids also entitles individual taxpayers to tax deductions. The interest you pay on your mortgage is also tax deductible. During tax preparation, all these factors must be considered.
Businesses can get deductions on some expenses. For instance, lunches and travels meant for business purposes are tax deductible expenses. Depreciation, capital investments and losses are also deductible. In fact, a company can fail to pay any taxes for decades by claiming a huge loss in a single year. This is a strategy that many business people use to avoid paying taxes in a legal way.
The gross income of an employee is usually what determines the tax rate they will pay. Usually, the higher the income of an employee during a given year, the higher their tax rate will be. On the other hand, the lower the salary of an employee, the lower their tax rate will be. Payroll tax is usually calculated and withheld by the employer before being remitted to the IRS.
It is important to note that failure to pay taxes or filing the wrong returns can amount to fraud, a serious crime that comes with severe penalties. For instance, you may find yourself in jail if you deliberately altered figures to ensure you pay less tax. Furthermore, you will be required to pay the outstanding debt to the IRS plus any fees, penalties and fines. This makes evading taxes one of the most serious crimes a person or legal entity can ever commit.
The number of CPA firms in Atlanta, GA, is always on the rise. This is largely due to the fact that the number of taxpayers in the city is on the rise. More people have also discovered the benefits of having their taxes done by a professional. When looking for a suitable CPA firm to do your taxes, you should give strong consideration to experienced certified public accountants.
Failure to pay tax has serious repercussions. For instance, there are fines and penalties associated with late payment and non payment. Furthermore, the IRS would have to audit your accounts to ensure there is nothing criminal about your non payment or late payment of taxes.
The tax rates applicable on the different types of incomes differ greatly. For instance, withholding tax on dividends, capital gains and interest income are usually subjected to the lowest rates. On the other hand, business income and employment income are subjected to the highest tax rates.
Taxpayers qualify for a wide range of tax credits and deductions. For instance, they can get a huge tax credit for acquiring and installing an Energy Star water heater, air conditioner or heating system. Paying tuition for yourself, a spouse or kids also entitles individual taxpayers to tax deductions. The interest you pay on your mortgage is also tax deductible. During tax preparation, all these factors must be considered.
Businesses can get deductions on some expenses. For instance, lunches and travels meant for business purposes are tax deductible expenses. Depreciation, capital investments and losses are also deductible. In fact, a company can fail to pay any taxes for decades by claiming a huge loss in a single year. This is a strategy that many business people use to avoid paying taxes in a legal way.
The gross income of an employee is usually what determines the tax rate they will pay. Usually, the higher the income of an employee during a given year, the higher their tax rate will be. On the other hand, the lower the salary of an employee, the lower their tax rate will be. Payroll tax is usually calculated and withheld by the employer before being remitted to the IRS.
It is important to note that failure to pay taxes or filing the wrong returns can amount to fraud, a serious crime that comes with severe penalties. For instance, you may find yourself in jail if you deliberately altered figures to ensure you pay less tax. Furthermore, you will be required to pay the outstanding debt to the IRS plus any fees, penalties and fines. This makes evading taxes one of the most serious crimes a person or legal entity can ever commit.
The number of CPA firms in Atlanta, GA, is always on the rise. This is largely due to the fact that the number of taxpayers in the city is on the rise. More people have also discovered the benefits of having their taxes done by a professional. When looking for a suitable CPA firm to do your taxes, you should give strong consideration to experienced certified public accountants.
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