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Are Tax Consultants Accountants?

To maximize your tax return and lower your overall tax liability, having a tax consultant is a critical part of your financial team. By working with a tax consultant, you can enjoy having an expert guide you through the ever-changing tax laws, advise you on investments that minimize your tax liability, and assist you in making financial decisions which can have far-reaching impacts on your finances.

While all this sounds good, not all tax consultants are equally qualified to help you, as not all tax consultants are accountants. If you are on the fence about whether you really need a tax consultant accountant, AA Tax & Accounting Services is here to help you determine your needs.

Why Choose A Tax Consultant That Is An Accountant

First, you should understand that there are actually no strict educational requirements associated with the job of a tax consultant. Some people approach tax consultancy from a work experience angle, and while this isn’t necessarily a bad thing, as these individuals lack the formal education in tax law, finances, and other matters, their advice may not be as encompassing as you would hope.

In many cases, tax consultants are college-educated, with at least a 4-year degree under their belt. Some of the educational paths that some tax consultants take are business, finance, pre-law, and of course, accounting. Depending on your consulting needs, one of these educational emphasizes may be more useful to you.

However, a well-rounded accountant who also has a master’s degree in accounting—such as our accountant here at AA Tax & Accounting Services—can provide more comprehensive services. With our accountant’s greater educational background paired with his experience helping others reach their financial goals allows our accounting firm to provide excellent accounting services here in Cedar City, UT.

What To Look For In Your Tax Consultant

When you are ready to find a tax consultant to help you with your tax liability and future financial decisions, it’s time to be picky. Some of the things you should look for in your tax consultant are:

  • Ensure education and experience – As there are no stringent requirements for claiming the title of a tax consultant, you will want to be sure that your tax consultant has their accounting degree or other educational and work experience you are looking for before committing to working with them.
  • Maximized services – Along with using their tax consultant services, it can be incredibly helpful to have a tax consultant that can work with you on other matters. From financial planning, business entity restructuring, tax filing, and more, working with a tax consultant accountant for all your financial needs can ensure that your financial needs are appropriately taken care of.
  • Clarified fee structure – There are multiple fee structures when it comes to tax consultant work. To ensure that you aren’t surprised by the bill later, be sure you know if your consultant accountant will be charging by the hour, lump sum, completed tax return, or other variations.
  • Check reviews – No matter how flashy the website, what will really tell you the most about an accountant are the reviews from former and current clients. Check to see what people are saying about working with your prospective tax consultant to help you see if they are the professional for you.

Whether you are looking for an ongoing partnership with a tax consultant or have a one-time need to consult, it is critical that you choose a tax consultant who is also an accountant. If you would like to work with our tax accounting consultant, contact us today to set up your appointment.

Mistakes on Your Taxes? Don’t Fret, Here’s What to Do


Once tax returns have been filed, most people breathe out a sigh of relief and promptly put it out of their mind, unless they are waiting on money back. However, something that is less pleasant to consider is when there is a mistake in your tax return.

Identify What Went Wrong On Your Tax Return

There are unfortunately a number of ways you can have mistakes occur on your tax return. The three most common ways errors happen are:

Personal tax preparation error – Sometimes, the error occurs when you prepare your taxes on your own. These errors may occur due to incorrect math, claiming inaccurate tax credits or deductions, or other easily made mistakes.

Employer mistake – If your employer makes an error in your withholdings, whether the issue is with your state or federal taxes, that can lead to a significant issue with your overall tax return.

Inexperienced tax preparer – There are many different levels of tax preparers ranging from a seasonal preparer to a trained accountant. If you opt for the cheaper and less experienced services of a seasonal tax preparer to file your tax return, the chance for errors is much higher.
By working with AA Tax & Accounting Services, you can have your taxes properly prepared the first time around. Also, you can be reassured by our guarantee that if an issue does arise with taxes that we file for you, our tax resolution service will be provided for free to correct the issue.

Start To Work Toward Resolving Your Tax Mistake

Once the error is known to you, it is critical that you start the process to correct the mistake on your taxes. It is best not to wait to see if the IRS will contact you with a penalty. Instead, it is always best if you start the resolution process before you are pressed to do so.

You may need to do a bit of research to determine if the mistake you have identified is the only one. After you correct one error, your tax returns may receive more attention to be sure that all the mistakes are caught and fixed.

Determine What You Need To Be Filed To Correct The Issue

If the IRS reaches out to you concerning a correction on your tax returns, they will help you through the process of correcting the filing error. However, if you find the problem on your own, there are different steps you may need to take.

For instance, if there is an error on your federal taxes, you will need to file Form 1040X, which is the amended U.S. individual income tax return. By filling out this form, you can correct previous federal tax return errors. Should you have more than one year of federal tax return mistakes to correct, you will need to file a Form 1040X for each year.

As for your state taxes, if you are a Utah resident, you will need to file the Utah individual tax return Form TC-40. On line 29, you will indicate that you are filing an amendment, with line 37 detailing what you previously paid. From there, you can correct your state tax return.

Take Your Tax Preparation To Cedar City’s AA Tax & Accounting Services

If you are concerned about making new mistakes and want your tax return filed properly, then AA Tax & Accounting Services is here for you. Our Cedar City accountant has helped countless people prepare and file their taxes, and he can help you overcome your tax hurdles as well.

For help with your tax preparation, contact us to meet with our accountant and start enjoying greater tax protection.

Benefits of Outsourcing Live Payroll To Your Cedar City Accountant


Managing your company’s payroll can eat up a good deal of your time, but it is a critical aspect of any business, as it can directly impact the morale of your employees.

By choosing to outsource the payroll services of your local Cedar City accountant, you can enjoy a number of benefits, including the overall happiness of your employees who are accurately paid on-time.

Reduce Your Payroll Processing Costs

Many small business owners take care of payroll on their own or have an office manager that doubles as a bookkeeper to take care of the company payroll. This can eat up hours of paid work just to keep ahead of the regular payroll.

That’s not even considering if you have employees that have benefits to track, new hires, garnishments, terminations, vacation time, sick days, as well as the many changing state and federal regulations regarding company payroll. On top of that, business owners can have a good deal of time spent every year on producing timely and accurate W2s for their employees.

When you choose to outsource your payroll to an experienced accounting firm like AA Tax & Accounting Services, you can unload that fluctuating man-hours expense. Even if you take care of the payroll yourself and don’t pay yourself for the time spent, your time as the business owner is valuable and can be more productively spent elsewhere.

Increase Work Productivity

Speaking of productivity, outsourcing your payroll needs to an accounting company can significantly increase your company’s productivity. When the payroll is in-house, at least two people will have their attention dedicated to dealing with the intricacies of the payroll.

With at least one employee processing payroll and either you or a manager verifying the information, vital time will be dedicated to an activity that doesn’t actively contribute to your business’ productivity, only passively as it will help the productivity of your other employees.

By moving your payroll processing out-of-house, you can save all that time and just make contact with our accountant once a pay period to approve of the payroll.

Greater Security Available When Outsourcing Payroll

Your payroll information needs to be protected, whether it’s just from an employee gossiping about salaries or outside attacks. There are other serious threats to your business payroll processing information such as:

– Funds being embezzled and covered up
– Using information for personal gain
– Cyber attacks
– Identity theft

With both internal and external threats to your sensitive payroll information, it just makes sense to outsource your payroll. Our accounting firm works with top-of-the-line protections to keep your data secure and can alert you to issues that may indicate embezzlement or other problems that can be obscured by in-house payroll.

Outsource To Protect Your Business From Tax Return Errors

According to the IRS, about 40% of small businesses pay yearly penalties related to issues with their tax return filing. As payroll plays a large part in a business’ tax return, it is essential that this information is accurately represented.

Not only can it be an issue for your company, but payroll errors can impact your employees as well. State and federal laws change often, and generally, only professional accountants stay on top of all these changes. A bookkeeper that lacks the most up-to-date information on payroll regulations may cause an issue with employee withholdings, leaving your employees with inaccurate tax information that may require them to file amended tax returns and also pay penalties.

These things can be discouraging to both the business owner and employees, heavily impacting the overall morale of your company. By opting to outsource your payroll to your local Cedar City accountant, you can be sure that he understands the local, state, and federal regulations regarding payroll and will work to protect your business.

Easy Employee Access To Payroll Information

Your employees will often need payroll information to receive loans, apply for apartments and leases, student loan repayment information, and more. Instead of having them need to come to you and adding another task to your busy schedule, outsourcing your payroll takes care of that issue.

With outsourced accounting with AA Tax & Accounting Services, your employees can view their pay stubs by pay period, print them out for documentation purposes, update their personal information, and review their benefits. These things can be tailored to your organization.

To discuss your business’ payroll requirements with our accountant, contact us to set up an appointment today.

5 Myths About Outsourced Bookkeeping Services

Myths-About-Outsourced-Bookkeeping-Services

If you have been weighing the pros and cons of using a bookkeeping service, you may have some misinformation regarding what outsourcing your bookkeeping means.

To help clear things up, our accountant at AA Tax & Accounting Services wanted to address the five most common myths around outsourced bookkeeping services and show you how your business can really benefit from utilizing this service.

1. Myth: Outsourced Bookkeeping Goes Overseas

One of the common beliefs is that if a service is outsourced from a company, that work goes overseas. While that may make sense for things like manufacturing work, it does not when it comes to bookkeeping work for American businesses. And while you likely could find a firm or freelance bookkeeper overseas to send your bookkeeping, it wouldn’t make much sense.

Reality: You can easily outsource your bookkeeping to an accounting firm in your local region.

That’s right, the reality of the matter is that you can outsource your company’s bookkeeping needs to an accountant who works within your same region, potentially within the same city you are located, depending on your area.

Our accountant works with a variety of clients ranging from local to national businesses, so you can easily opt to work with him or another American accountant who understands the appropriate tax laws and financials.

2. Myth: Sending Bookkeeping Out-of-House Is Expensive

Many entrepreneurs are wary of taking on too many financial burdens, especially if their business is relatively young or goes through regular highs and lows. So, many of them attempt to take care of their own bookkeeping for far longer than they should.

Problem is, bookkeeping for a business can take up a good deal of time, and it also requires a good deal of attention. In the long run, mistakes made while attempting to handle your bookkeeping and other business matters can be far more expensive than simply outsourcing bookkeeping to the professionals.

Reality: You can tailor your bookkeeping service to fit both your needs and budget.

When you work with our accountant, you can structure our bookkeeping service to fit both your needs and budget. Since businesses all have different bookkeeping needs depending on the company niche, size of the business, etc., it is not uncommon for owners to set up customized bookkeeping services with our accountant.

3. Myth: You Have No Control Over Outsourced Bookkeeping

Sending bookkeeping out-of-house may make some business owners feel like they don’t have enough control of the situation. But, business owners who try to extend themselves too far and try to take care of all the aspects of how their companies run often become burned out.

Even with bringing a bookkeeper in-house, business owners have to give up a certain amount of control, as they have to trust the in-house bookkeeper. These individuals may require training and may have fudged their credentials, making them a far less reliable option.

Reality: Business owners have just as much (or more) control over out-of-house bookkeeping as in-house work.

By opting to send your bookkeeping out-of-house, you can set the terms for what you need to be done as well as dictating the schedule. When you work with a professional like our accountant, you can depend on him to deliver the results you are looking for and a high amount of reliability.

4. Myth: Your Bookkeeping Is More Vulnerable Out-of-House

Another common myth about outsourced bookkeeping is that your business’ financial information is more vulnerable when you send it out-of-house. As the news is constantly reporting on hackers invading supposedly secure businesses, it can feel nerve-wracking to think about sending your bookkeeping to an accountant.

Reality: Accounting firms often have the highest levels of information security.

As accounting firms like ours deal with many people’s sensitive financial information, we make it a special point to invest in the best security possible. Both our physical records are protected as well as any digital information, so you can feel secure as you send your bookkeeping to our accountant.

5. Myth: It’s Easier To Do Your Own Bookkeeping

For those beginning their self-employment journey, it may make sense to do your own bookkeeping, as it is usually fairly simple. However, as you start to add inventory, staff, vendors, and more to your business, the ease of taking care of your own bookkeeping goes away.

Reality: Bookkeeping can eat up tons of time for non-professionals.

Instead of trying to juggle the various aspects of bookkeeping on top of your own business concerns, you can unload the work to our accountant. By choosing to have your bookkeeping go out-of-house, you can free up far more of your time to do things that you both enjoy and will help you grow your business.

Have AA Tax & Accounting Services Take Care Of Your Bookkeeping

Here at AA Tax & Accounting Services, we work with a range of business for their accounting needs, from the self-employed with no staff to thriving businesses with multiple locations. If you are ready to take the burden of your bookkeeping off your shoulders, our accountant is here and ready to help.

To create a custom bookkeeping service for your company needs, contact us to meet with our accountant today.

6 Ways Your Startup Company Would Benefit From Our Accounting Services

Startup-Company-Would-Benefit-From-Our-Accounting-Services

When it comes to startup company planning, there are so many factors to consider, from the service or product you are hoping to provide to your target demographic.

Naturally, the financial aspect is a major consideration, but where many startups go wrong is not having an accountant involved from the beginning. If you aren’t sure how working with AA Tax & Accounting Services can benefit your startup, here are some things to consider.

Know Whether Your Startup Company Is Viable

Planning and launching a startup is an exciting process, but you don’t have to wait for a crash and burn or wild success to find out if your startup company plan is viable.

Instead of waiting, you can bring your business plan into our accountant. By working with our accountant, you can determine how long your business can remain viable with your current amount of money, see what kind of revenue you need to maintain and grow, and other critical concerns.

Start With Solid Financial Business Practices

Having properly organized finances is vital, especially when it comes to doing your startup company’s taxes. Often, tax time can lead to a huge amount of stress for startup businesses, as many of them neglected to set up proper bookkeeping and records, leaving them scrambling through piles of receipts and digging through archived emails for invoices.

You don’t have to go through this when it comes to building up your startup. By working with our accounting services from the beginning, your business can have solid financial business practices in place to keep disorganization from eroding your new company.

Also, as your startup grows, there won’t suddenly be a scramble for better accounting practices since they will already be in place.

Less Wasted Time Re-Inventing

If you wouldn’t bother re-inventing the wheel, then why would you waste time re-inventing accounting practices that already work well? Some startup business owners try and test out various accounting software, bookkeeping schedules, record-keeping methods, all in an effort to find the best accounting practices for their business.

Yet, by working with our accountant, your startup can take advantage of excellent accounting business practices from day zero. With an organized and established accounting practice like ours to help, you can avoid having important financial matters slip through the cracks.

Receive Help With Needed Information To Attract Investors

Funding can be the lifeblood for a startup in its early years, yet it can be tough to acquire small business loans and investors. Part of the difficulty is the fact that most startups have big ideas with very little clear data to back up their grandiose claims.

To support you during your search for investors, our accountant can develop reports to show your company’s earning, potential projections, and other financial statements to add that essential data for your potential investors.

Remove The Hassle Of An Accounting Department

When it comes to startups, the “accounting department” usually consists of you as the founder, or if you’re lucky, your business partner. However, this strategy is not the best use of your resources.

If you and your business partner are not already accountants, then it will likely take you far longer to manage things such as bank reconciliations, general ledger management, day-to-day bookkeeping, balance sheets, accounts payable and accounts receivable, and so much more. These tasks can eat into your valuable time, which you could be spending building up your business.

Even as your business grows to the point where hiring a bookkeeper is a viable option, outsourcing your bookkeeping needs makes more sense. For one thing, you don’t need to provide benefits if you outsource your bookkeeping. Also, if you continue to work with the same accountant who initially helped you launch your business, the consistency can help protect your accounting management in the long run.

Enjoy Expert Advice With AA Tax & Accounting Services

Here at AA Tax & Accounting Services, our accountant has worked with many adventurous entrepreneurs to help them successfully launch and operate their startup.

If you are ready to give your startup the best financial protection, contact us to meet with our accountant.

The Value of Utilizing Private Accounting Services


There is an enormous amount of value in utilizing private accounting services, from reducing your business costs to adding greater financial protection to your business.

If you have been considering outsourcing your accounting needs but aren’t sure if it’s right for you, here are some reasons that may help you take the plunge and utilize the private accounting services of AA Tax & Accounting Services, LLC.  

Reduce Overhead Costs With Private Accounting

One of the main reasons businesses of all sizes opt for working with a private accounting firm is to reduce their overhead costs. Having even an in-house, part-time bookkeeper can be pricey, especially if you want one with any amount of experience. But when you turn your bookkeeping and accounting needs over to a private accountant, you can significantly reduce costs in several ways.  

  • You don’t need to train an out-of-house accountant like you would with an in-house bookkeeper and accountant.
  • No benefits, unemployment insurance, and other attendant costs are attached to hiring a private accounting firm, unlike an in-house employee.
  • Private financial matters such as employee salaries will remain private with the help of an accounting firm.

Tailor Exactly What Accounting Services You Need

By working with AA Tax & Accounting Services, LLC, you can determine exactly what accounting services your company needs.

Say that you run an ecommerce business with a few employees and are looking to grow. With our accountant, you may want to utilize our firm’s bookkeeping and payroll services, access our business consulting services which include entity restructuring, revenue recognition strategies, tax preparation, and more.

However, say instead that you are looking to start a new company but need help on the financial side of startup company planning. Our accountant can help with your business planning, from assessing startup costs to profit analysis information you will need to present to potential investors.  

With an accountant in-house, you may not have access to all the skills you may need for your growing business. But when you work with a private accounting firm like ours, you can make sure that we have the services you need to ensure your finances are on track.

Enjoy An Outside Perspective On Financial Matters

You know the old saying, “It’s hard to see the forest when you’re among the trees.” Well, running your own business can be like that. As you are involved in the day-to-day business of your operation, it can be difficult to see exactly what you need to do financially to ensure the future profitability of your business.

By working with our accountant, you can enjoy the clear view that comes with someone who isn’t personally with your business. Other people heavily involved in your business may not have the clarity and insight that a private accountant can provide.

Even if you aren’t a business owner, it can be difficult to project your future financial needs when you are busy with your immediate needs. If you need assistance in managing your portfolio or arrange your personal finances, our accountant has helped many individuals ensure that their finances are taken care of properly.   

Add A Layer Of Protection To Your Business

Business financial matters are only as safe as the competency of the person handling your accounting needs. By outsourcing your accounting needs to our private accounting firm, you can enjoy greater security and safety measure. Some of the financial protection benefits we provide your company with are:

  • Cash flow management
  • Embezzlement protection
  • Bank reconciliation
  • General ledger management
  • Payroll processing

Here at AA Tax & Accounting Services, LLC, you can enjoy all the benefits of private accounting services with the help of our experienced accountant. Contact us to discuss your accounting needs with our accountant.

Bookkeeping VS Accounting Services: What’s The Difference & What Does Your Business Need?

Bookkeeping VS Accounting Services

Many people tend to use the terms bookkeeping services and accounting services. It is understandable, especially since accountants like our accountant at AA Tax & Accounting Services offers both bookkeeping and accounting services. However, these services provide small business owners with different benefits.

Bookkeeping Services Keeps Track Of Financial Information

The main benefit of bookkeeping services is the knowledge that your business’ day-to-day financial business is being tracked and recorded. In general, bookkeepers perform data entry work, from entering invoices to balancing the general ledger.

This work is essential to your business, as it means you will have the information you need to accurately:

  • File your taxes
  • Track accounts payable and accounts receivable
  • Detect embezzlement
  • Review the general ledger
  • Ensure bank reconciliations occur correctly

Along with this necessary work, some bookkeepers also take care of employee payroll processing, as well as creating invoices for your business to ensure vendors pay you in a timely manner.

Accounting Services Helps With The Financial Big Picture

While accounting services can include bookkeeping duties, an accountant will generally help a business take a longer view in regards to their finances. This means that an accountant will take the information recorded by the bookkeeper and use that info to make reports and recommendations.

For instance, say your accountant takes the information around your business’ profits and analyze it against certain expenditures. That way, the accountant can assess what is a profitable expenditure and what areas your business can tighten up costs. Some of the other essential services accountants can provide are:

  • Tax preparation for individuals, businesses, and nonprofits
  • Startup company planning
  • Business consulting
  • Entity Restructuring
  • Revenue recognition strategies
  • Payroll services

Another important distinction to make when it comes to accountants and bookkeepers is the education involved. While some businesses prefer bookkeeper with some secondary education, all a person needs to be a bookkeeper is a high school diploma.

But with accountants, they need to have at least a bachelor’s degree in most states. And if you are looking for an accounting firm to work with, you can easily check their credentials to ensure they are both educated and experienced.

How To Determine Which Service Your Business Needs

In many cases, the size of your business can help you determine which type of accounting service you need. If you only have a couple of employees, a bookkeeper may be all you need to ensure that your company’s finances are in order. With the accurately tracked information, you can bring your records to our accountant to take care of your tax preparation and filing of your return.

As your business grows, bringing an accountant onboard can help ensure that your company is headed in the right direction. Since an accountant’s job is to take the long view when it comes to your business, they can help point out areas where overspending may be taking place as well as sectors where it makes sense to invest further. These recommendations may involve you looking for new vendor bids and investing in online marketing to grow your company’s reach.

Also, there are plenty of times where it makes sense to work with both a bookkeeper and an accountant. As our accountant performs both of these services, you can feel assured that your day-to-day financial business is taken care of and receive reports and recommendations which will help you continue building up your company.

When you have determined what services you need, contact us to start working with our accountant, and see how we can help you make your business grow.

Government Shutdown Might Mean Refund Delay, Let Your Accountant File It Quickly

When the government shutdown occurred earlier this year, the IRS was one of the main areas where funding stopped. As a result, the tax return process was in jeopardy. The question, at the time, was how quickly would tax refunds be processed, if at all, and how long would people have to wait to receive them.

But because of a few loopholes in the policy about government offices operating during a shutdown, the IRS has been able to stay the course, with some minor delays, in processing returns.

Prior Shutdowns and the Antideficiency Act

If a government shutdown occurs, some government areas still remain in operation. One of those areas is, of course, the IRS. In the past, the only contingency was while returns would be processed, refunds might be delayed until the government was again funded.

Your local Tax Accountant, however, is probably going to continue doing the work of helping people prepare their returns as most tax filers like to complete them as soon as the tax season starts.

Last year, 18.3 million people claimed around $12.6 billion in early refunds. This year, the IRS stated that tax filing season would begin on January 28th, despite the Antideficiency Act that states what type of work can be done during a government shutdown.

IRS Employees Still Worked

In spite of the shutdown, the Trump Administration vowed that the processing of returns and refunds would not be interrupted. This meant the IRS had to keep-on around 46,000 employees (57% of its workforce).

But those employees did their work without pay with the promise of back-pay as soon as the government was funded and operational again.

In the interim, the IRS assigned staffing to functions it deemed a necessity, such as processing electronic returns, processing returns with payments, mailing tax forms, appeals, criminal law enforcement and investigations, and technical work to maintain computer systems. Other job functions like audits, returns, non-automated collections, and legal counsel, etc., were all temporarily stopped.

The IRS Tried to Serve Taxpayers

Despite the fact it only had half its workforce in place during the shutdown, the IRS still tried to help taxpayers with any concerns they might have. 38% of calls to its Automated Collection System were answered with callers waiting close to 50 minutes. As far as the IRS’s Installment Agreement/ Balance Due line, only seven percent of calls were answered with an over 80 minute wait time.

The IRS also had five million pieces of mail that needed to be processed. And it had over 80,000 responses to the fiscal year 2018’s Earned Income Tax Credit audits that went unanswered. Add to that the 87,000 amended returns that no one addressed.

The IRS’s Old Computer System

Although it is probably one of the most important areas of the government, the IRS is highly underfunded, and this point goes beyond normal funding the agency receives when the government is fully operational. One of the areas where it is behind the times is in its computer systems, which haven’t been updated since the 1960s.
Currently, taxpayer information is stored in 60 different case management systems that aren’t linked together and the agency lacks a central database. The problem is IRS employees are unsure if they are servicing the right taxpayer accounts or not. These antiquated systems also make the audit process highly imprecise and ineffective.

Tax Reform Questions Unanswered

In 2014, the IRS instituted a policy of answering tax law related questions in a specific fashion and only during the tax season months of January through April. But the Trump Administration’s tax reform changed that policy, especially in regard to questions about the Tax Cuts and Job Acts reform.

But callers were told those questions couldn’t be answered due to budget restrictions and instead were directed to an automated answering system where they were promptly disconnected. Those taxpayers who actually got a live person were told that IRS employees had not been trained on the reforms and apologized for not being able to answer their questions.

Tax Returns and Refunds Were Still Processed

With all the problems the IRS faces with old computer systems and insufficient training on new tax laws in addition to being short of staff during the shutdown, the agency was still able to process returns and refunds, although not at the same level as the prior year. In the first week of the tax season, the IRS was still able to process 13, 306, 000 returns with 4,672,000 refunds paid out. The average refund, however, went down from the prior year from $2,035 to $1,865.00.

Conclusion

The government shutdown finally did end, although President Trump threatened another one might follow. Thankfully, that didn’t happen. All IRS employees are most likely back at work, but the fact remains they are plagued with old systems and not enough training about tax reforms to answer taxpayer questions.

Have you done your 2018 taxes yet? Are you worried the tax reforms of last year might make doing your tax return difficult and negatively impact your refund? It’s not too late to contact your Cedar City Accountant to help you through your federal as well as with your Cedar City taxes.

Why You Want To Avoid Filing For An Extension

Filing

Tax season is in full swing, and our accountant in Cedar City has been seeing plenty of clients who have inquired about tax extensions.

While an extension can be a helpful tool if you are waiting on paperwork or are a small business owner looking to make contributions to their retirement fund, there are several instances where you should avoid filing a tax extension.

Extensions Only Apply To Filling, Not Your Tax Payment

One of the main reasons people initially consider filing a tax extension is because they are unsure or unable to pay the taxes they owe. However, this is not what an extension is not designed for this purpose. An extension of your taxes only allows you to have more time to file your tax return. You will still need to pay any taxes you owe.

This requirement can sound counter-intuitive, as you may not know exactly how much you owe in taxes until you complete your return. But by working with our tax accountant, you should have estimated tax payments that you can use to pay your taxes by the original filing deadline. If it turns out that you have overpaid after you file your extended taxes, you can receive a refund from the IRS.

IRAs Are Not Able To Be Recharacterized

Prior to the passing of the Tax Cuts and Jobs Act (TCJA), you could file an extension and recharacterize your IRA, converting a traditional IRA into a Roth IRA or vice versa, all while you finish filing your tax return. But since the TCJA has passed, your IRA cannot be changed during a tax extension. So, if you were planning on recharacterizing it, be sure it is done by April 15, 2019.

Tax Extensions Do Not Apply For Married Filing Status Amendments

For those married couples who originally filed jointly wish to change their filing status, they only have until April 15, 2019, to file an amended tax return that reflects their decision to file married, filing separately. Our accountant can assist you in amended your tax return to reflect your new filing status, but you will need to come in before the original filing date, as extensions will not apply.

If you would like expert assistance with your taxes, contact us. Our accountant has an office in Cedar City and St. George and is ready to help you with your tax preparation needs as well as your other accounting needs.

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