One of the most challenging aspect of managing a fair and honest display of your taxes tends to come from avoiding problems with the CA FTB. You can find that merely keeping accurate tax records, filing in a timely manner and working with a reliable CPA can be the simplest steps to safeguarding your relations. However, understanding the basics of your accountancy practice and avoiding going for any underhand scams or schemes will naturally help. The CA FTB, though, can be quite unrelenting if you find yourself in their gaze, so it helps to prepare for this accordingly in future.
Keep Clear Records
The first thing that you should try and do, then, is keep clear and obvious record of all of your tax information. A good accountant can help you make that a little easier, as they can also have a record of it all. However, it’s best to keep physical and computerized records of your taxes. A failure to have clear records can make it harder to state your case should any problems arise with the authorities.
Accountancy Styles
Whether you choose to run with a cash, accrual or combination method you will have to choose. Every business needs to choose a method of accountancy, making sure that you follow a specific set of roles for reporting income and expenses. Working with an accountant will help you understand the best path to go down for either choice, which should hopefully make it a lot easier to stay on the right side of the law.
If you ever have your tax returns examined, then you will need to answer questions on how your method words, the accuracy that it shows in your income, and how consistent you are with its usage. Again, having aid from a tax preparer can make sure you can manage this easily.
Avoiding Scams
Obviously, a good way to stay out of the gaze of the FTB is to avoid getting involved in tax games and scams. Illegal and immoral tax schemes are commonplace and are usually easy to get roped into. You might not want to pay much tax, so when someone can offer you an “easy” solution it’s simple to say yes.
However, scams are usually only going to benefit one person – the scammer. Instead, you’ll be left to fit a ridiculous bill and probably need to deal with a rather angry FTB. If you want to avoid these issues, then you should always work with an accountant.
They can review any scheme that is put to you to make sure it’s above board and is going to be worth looking at. Many tax plans are fair, legitimate and legal but many are far more unscrupulous. So, to avoid this problem you should definitely consider getting some professional advice about any potential schemes you consider.
This can be a major challenge and one that will see you tested with regards to how you run your business. With the right approach, though, it’s simple.
