What is Tax Compliance?
In broad terms, tax compliance involves all the things your business does to comply with the tax codes set by the government. Tax compliance involves a number of jargon-dense, detailed forms and documents, and if you aren’t well versed in the world of taxes and finance, they can be a burden for your business. Tax compliance standards also change each year, and vary depending on what kind of entity you are (e.g., personal, corporate, estate, nonprofit). Still, errors in your tax reporting, income declaration, and many other factors can lead to accusations of fraudulence or negligence from the IRS, which could mean fees and other serious complications down the road.
Outsourcing Your Tax Compliance to a CPA
Tax compliance is meant to be a year-round marathon, rather than a few-times-a-year series of sprints. As a business, it’s difficult to stay diligent when monitoring your tax compliance. To alleviate that burden, many businesses outsource that responsibility to a CPA. In fact, 77% of 71 million taxpayers looked to CPAs and accounting firms to oversee their compliance last year, according to a study by the U.S. Government’s General Accounting Office.
Despite the consequences of failing to comply with government tax rules, you shouldn’t have to constantly worry for yourself or your business. As tax professionals, MSM manages this kind of information every day, and we can ensure your taxes are aligned with federal requirements. We can also help with tax mitigation, which helps your business avoid unnecessary or inapplicable tax liabilities. That means you won’t have to worry about future problems with the IRS, and you’re guaranteed not to overpay on your taxes.
Need help managing your tax compliance? Our team of experts can review your taxes and finances and determine what changes you need to make to keep yourself in good standing with the IRS. If you’re ready to take the first step toward a much more manageable financial plan for yourself or your business, reach out to us today.