Monthly Archives: March 2014

3 Things You May Not Know About the IRS

IRS and small businessThe IRS is one of those government sectors surrounding by mystery and intrigue.  We picture stern looking men in dark suits, always with the looming atmosphere of threat surrounding them.  As taxpayers, we’ve learned to dread audits with the same fear with which we regard natural disasters.  Fortunately, the air of danger and fear surrounding these IRS agents is often exaggerated.

  1. When filing there ARE tricks to avoid an audit:  First of all, don’t round your numbers because the IRS views this as an estimation.  Secondly, failure to sign a form can flag it as suspicious.  Finally, explain large deductions.  Essentially, any form submission that sticks out makes you a potential victim for auditing.
  2. Timing is everything: As a small business, timing when your employees receive bonuses and overtime can affect your bottom line.  With bonus payments, often these payments coincide with payment of payroll taxes and the two must meet up.  This mistake can cause penalty action to be taken.  In the event of overtime, this must be tracked on a weekly basis regardless of your payroll schedule.
  3. Be careful to keep your payroll expenses separate from your operating expenses:  If the IRS thinks you’re dipping into your payroll funds to pay general expenses for your business, you could be looking at quite severe penalties.  Be sure to keep accurate records, and don’t co-mingle finances.

Often the IRS isn’t the unfriendly, frightening figures we fear them to be.  If you’re diligent with record keeping, and are honest in your returns, direct contact with IRS can mostly be avoided.

For fast, secure, and mistake-free filing, be sure to check out our website!

Challenges Facing CPA’s

 CPAsBeing a CPA presents a unique set of challenges, much like other professions.  During certain times of the year, the duties of a CPA increase exponentially.  Tax time is so often stressful for clients, and more often than not, a great deal of that stress is filtered down to the CPA.

Time is against most of us, there’s no denying it.  There never seems to be enough hours in the day to get everything done that we need to accomplish.  During tax season, if you’re a CPA, chances are you need almost double the amount of hours to get everything finished.  Add in a reliance on technology and staff members, and things can start to get dicey in a hurry.  Think about it this way, if one member of your office were to slow down, miss a day, or a computer were to break down, what effect would that have on your workflow?

On top of dealing with increasing workload, potential technology failures, and unreliable staff CPAs still have clients to deal with.  Some clients expect their CPA to have all the answers, and have those answers immediately.  Clients want more and more, but want to pay less and less.  CPA firms, in turn, have no choice but to lower their prices to compete with other services and then have to hire less staff.  With less staff, workload increases, and a CPA ends up bogged down in their duties.

At Online Files Taxes, we specialize in helping CPAs find enjoyment in their job again.  We have a streamlined system that allows you to easily and painlessly e-file hundreds of forms at a time.  We cut out the tedious steps of filing, mailing, etc. and allow you to get back to focusing on your clients.

Check out our website for more information about easing your workload!