Busted! Don’t Believe These Tax Myths!
You can hear a lousy tax take almost anywhere from your hairdresser to the grocery store. Today, with a smartphone and a social media account, taxpayers have a platform to share that advice almost immediately. And the more it’s shared, the more legitimate it may appear to taxpayers. This misinformation about tax filing could cost you a lot if you are unaware and blindly follow it.
The Income-tax department does not allow revision of returns if there is any misapprehension, you can’t carry losses, and you can’t claim a refund. Hence you should be very much well aware of the myths that can cost you dearly. To help you steer clear of common tax misconceptions, Michael J. Berger and Co., CPA’s LLP, has debunked some of the most widely believed myths about taxes.
Myth 1: Income tax returns are easy to complete
Not true. For most taxpayers in the country, tax filing on their own may be difficult. It can be overwhelming for taxpayers to read through all their financial data and tax laws and decide on it accordingly. Tax experts like us are well versed in tax-related documentation, yearly updates, and what will work for a particular individual. We go to many classes and read a lot of literature on the changing tax laws.
Myth 2: Accounting records do not have to be kept
It might be a boring accountancy mantra, but keeping complete and accurate business records is essential. It ensures that you are giving your accountant the right information so that your tax returns are filed correctly and you pay the correct amount of tax. Also, if you have an audit, your records may need to stand on their own or with proper representation by a professional.
Myth 3: Getting a bank loan is easy, just ask your banker
This is not true, and you will need Financial Statements showing the need for a loan and the ability to repay it. Banks tend to favor businesses that have a steady revenue stream and consistent cash flow coming in every month. Businesses that can’t demonstrate this consistency are denied loans significantly more often than not.
If you’re looking to steer clear of these myths, reach out to Michael J. Berger and Co., CPA’s LLP. As the best accounting/CPA Firm in Long Island, NY, we ensure that all of your accounting and tax issues are handled professionally. Our team provides personalized accounting and tax services to small and medium-sized businesses. We also do personal tax returns in Long Island, NY, for current and prior years. Our highly experienced team is committed to offering excellent service when it comes to planning and creative accounting, and tax work.
In addition to accounting and taxes, our team can also help you with estate planning in Long Island, NY, as well as a variety of other financial services. Our certified public accountants and enrolled agents are committed to helping you with all of your financial needs and can make quick decisions and efficiently respond to your needs.
We offer services like IRS problems, tax problems, and tax resolution services, accounting services, auditing services, tax services, IRS representation, financial statements, tax planning services, state tax representation, estate planning services, estates and trusts, and individual income tax services. For a complete list of our services, please click here. If you have any questions about Michael J. Berger and Co., CPA’s LLP, we’d love to hear from you. Please contact us here.