Last Minute Filing Tips for April 15th

In 1919, Congress passed an amendment to the Constitution that made it illegal to manufacture or sell alcohol. In order to replace that lost revenue, income tax was the proposed solution, and despite the repeal of Prohibition, we have been paying income taxes ever since.

If your business is operated as a corporation and you're active in your business, you should receive W-2 wages and you won't be subject to self-employment tax on your earnings. Distributions from S corporations are generally not subject to self-employment taxes.

If you don't have an emergency savings account of at least $2,000 (the ultimate goal being 6 months of expenses in savings), then applying your tax refund to build this account would be a smart choice. Make this a priority.

When you intend to report an amended return, your primary step is to report a new 1040. It is critical that when you record a 1040x, it matches up with a standard 1040. When you prepare your 1040x, you will notice 3 columns. Column A reports different items on your primary 1040, column B reports items on your new return, and column C lists the contrasts between the two. In section two of your 1040x, you detail the variations you made to the amended tax return. It's significant to be transparent and concise as potential with this. Try not to leave any room for error on the IRS' part in interpreting your new return or you may wind up being called for an audit.

• Client data import: - The import modules built into Lacerte software makes sure that complete clients' statements can be imported easily to the database and input get filled into required forms.

Another example of less than stellar tax return preparation relates to depreciation. Depreciation is the government's gift back to investors, especially real estate investors, for investing in long-term assets such as equipment and buildings. What most tax preparers don't understand is the idea of a cost segregation or chattel appraisal. The whole goal with depreciation is to get more of it sooner. This provides the investor with a terrific tax benefit in the early years of property ownership. And under the important wealth creation principles of leverage and velocity, the sooner we have cash, the sooner we can invest it and obtain major returns from our investment. The problem appears to be a lack of knowledge from many tax preparers and CPAs about the rules surrounding cost segregation.

Although these aforementioned services are generally the crux of what BPO companies provide, they are not limited to these. Some companies have more specialized needs and the BPO company that can best adapt itself to its customer is by far, the leaders outsourcing in the race.