Tax consultancy refers to guiding services such as informing, guiding, document tracking and strategy determination, especially for businesses in tax-related transactions. Tax is an important issue that directly concerns both individuals and businesses. Taxation, which is justified on the basis of financing public services, refers to a financial obligation that must be paid if certain conditions are met or certain situations occur. Failure to fulfill these obligations results in additional penalties under the law. So what benefits do businesses receive from tax consulting in the US?
Tax is one of the most important factors that directly affect business activities and affect the business in many aspects from pricing of products to profitability. It is an issue that businesses should follow carefully, both in terms of the financial size that must be paid in certain periods and in terms of the procedures to be fulfilled regarding tax. In this context, some activities arise in the form of keeping records regularly from the establishment of the enterprises, collecting these records in certain periods, and making timely payments if the conditions are met. Tax consultancy service refers to the support provided to companies in these processes.
Consulting firmsthat specialize in taxation, have a good command of tax legislation, and closely follow current developments provide important support to businesses by providing services such as producing strategies to minimize the tax amounts that will create liabilities by taking into account the legal and financial situations of the enterprises, preparing and reporting tax returns, and resolving problems by negotiating with the relevant tax authorities, including the IRS, in case tax problems arise.
The Complexity of Tax Regulation in the US
Tax legislation is very complex and technical in nature. All taxes, both direct and indirect taxes, have to cover the situations that arise in commercial life. Therefore, tax regulations are prepared in a comprehensive manner. Especially the US tax regulations have a structure that cannot be easily followed by non-specialists. It has a technical terminology. Understanding the regulations is a separate area of expertise. Due to the complex and technical nature of tax issues, most businesses seek the support of professionals instead of dealing with these matters directly themselves.
Frequent Changes in Tax Legislation
Tax legislation is frequently amended for various reasons such as changes in government policies, the emergence of new economic conditions, and the emergence of incidental situations. Regular monitoring of tax-related elements such as tax bases, applied rates, exceptions and exemptions in this respect is of great importance in order to prevent businesses from being exposed to additional tax liabilities or to avoid missing advantageous situations.
In practice, it is very difficult for a business owner who is focused on his or her own business activities to keep track of these changes on a regular basis. If a taxpayer underpays taxes according to the tax legislation and this is detected in IRS audits, it may face significant sanctions. On the other hand, if a taxpayer pays more tax than necessary because he/she does not know the tax deductible items well, the profitability of the business decreases. Therefore, businesses in the US benefit from tax advisory services.
Taking Advantage of Tax Shield Opportunities
Tax regulations allow certain investment and expense items to be deducted from the tax base. These items include depreciation, interest expenses, charity expenses, etc. In this respect, tax shieldsrepresent a relative reduction in thetax liability of enterprises. These transactions, which are fully permitted by the legislation, are also very important in terms of determining the strategies to be implemented by businesses. Tax consultancy provides significant support to businesses in determining these strategies and choosing between expenditure items.
Tax Procedures and Time Limits
Businesses must issue invoices for every sale they make. These invoices are aggregated at the end of certain periods and constitute the basis for determining the status of the enterprise against tax legislation. Afterwards, there are a number of procedures such as filling out the relevant tax forms and rulings and submitting declarations. All these procedures cause significant time losses. In addition, it is difficult for business owners to carry out these procedures directly due to reasons such as filling out the relevant forms, the rates to be applied, and the evaluation of various exemptions.
In this respect, companies providing tax consultancy services allow business owners to focus on their own business by carrying out activities such as collecting and organizing tax-related documents, preparing declarations, filling out tax forms and schedules, and declaring them on time.
Tax Issues Solution Negotiating with Public Authorities for
Despite the detailed preparation of tax legislation, it is inevitable that there will still be various hesitations in practice. In some cases, it is not very clear which provisions the enterprises will apply or contradictory situations arise. Sometimes, the lack of a clear understanding of the provisions of the legislation causes businesses to make mistakes in their tax transactions. In order to resolve such situations, tax consulting firms in the US meet with the IRS and other public authorities on behalf of their clients.
Diverse Needs of Businesses and Tax Consulting in the US
There are many different types of taxes in practice. Taxes such as income tax, corporate tax, inheritance and gift tax, which are levied directly on the taxpayer and where different rates are applied depending on income status, refer to direct taxes. In addition, there are indirect taxes such as value added tax, stamp tax, special consumption tax, etc., which are levied indirectly on expenditure transactions.
The situation of each taxpayer will also differ from each other in terms of these taxes. The issues that a newly started business will receive consultancy in the context of tax legislation will be different from the issues that a taxpayer making a retirement plan will receive consultancy. Within the scope of tax consultancy services, it is easier for taxpayers to receive support on the issues they are interested in.
Sky Accounting Supports Businesses with Tax Consultancy Services in the USA
With its expert staff, Sky Accounting provides important services to businesses. In addition to accounting system establishment, pre-accounting, payroll services, Sky Accounting provides support to businesses in areas such as tax planning, tax shield, calculation of taxes payable and declaration, solution of tax problems, IRS representation. Sky Accounting within the framework of these service titles;
- Closely following the changes in tax legislation and sharing the most up-to-date information with its customers,
- Determining strategies for businesses to pay less tax within the framework of legislative provisions,
- To resolve the doubts of customers regarding the provisions of tax legislation,
- To carry out the preparation of tax returns, forms and tables of enterprises,
- To evaluate both the financial and legal status of businesses in order to determine tax liabilities,
- In case of significant changes in the legal and financial status of the enterprises, to inform them in the context of the provisions of the relevant legislation,
- Negotiating with the IRS and other relevant public authorities on behalf of businesses
By carrying out such activities, it provides support for businesses to move forward in the most ideal way in commercial life.
You can click here to learn more about Sky Accouning and see the services it provides.
