Tax Return Preparation: A Guide for Individuals, CPA & Small Business

Tax Returns Preparation
- An Easy Guide for Individuals, CPA’s &
Small Business
Copyright © 2016 Cogneesol | +1-646-688-2821

Table of Contents
WHAT IS TAX?
HOW TO PREPARE
TAX?
WHAT ARE TYPES OF
TAX FORMS?
WHAT SOFTWARE ARE
USED TO PREPARE
TAX?
IS IT A GOOD IDEA TO
PREPARE YOUR OWN
TAX?
WHAT ISSUES CAN
COME UP DURING TAX
PREPARATION?
WHAT IS the SIMPLE &
SAFE SOLUTION?
WHAT IS IN-HOUSE &
OUTSOURCE TAX
PREPARATION?
HOW BACK-OFFICE
HELPS FOR BEST TAX
PREPARATION?

What is TAX?
According to Wikipedia, Tax is a Financial Charge Usually Calculated in Percentage (%) or Other
Levy Imposed Upon a Taxpayer by a state or the Functional Correspondent of a State to Fund
Various Public Disbursements. It’s Enforced by Law & Violation of the same is Considered as a
Sin & Lead to Punishment. The basic purpose of Taxes is to raise Revenue to Fund Government.
In US, It’s Federal Tax that is Filed by a Predefined Minimum Wage Folks.
Tax Types: Income Tax, Sales Tax, Property Tax, Inheritance Tax, Wealth Tax, Excises Tax, Payroll
Tax, Capital Gains Tax, Corporate Tax etc.

How to Prepare TAX?
- A Step by Step Procedure (Tax Return Preparation)
 Determine if You are Required to File a Tax Return (What matters is – Age, Annual
Income, Marital Status etc.).
 Manual: Get the Tax FORMs from Local Library, Post Office or IRS Website, Prepare Your
Federal & State Taxes According to the Instructions, Mail to your Tax Returners & Make
Payment.
 E-File: Choose an Affordable Tax Preparation & E-File Program (Pro-Series, Lacerte,
TurboTax, UltraTax, ATX), Install the Software & Begin Filling in the Requested
InFORMation.
 Don’t Forget to Review the Prepared Returns & Get Help from Professional to Minimize
Mistakes.

What are Different Types of
TAX Return FORMs?
FORM 1040 FORM 1040A FORM 1040EZ FORM 1040NR FORM 1040NR-EZ
U.S. Individual
Income Tax Return
on Gross Income
U.S. Individual
Income Tax Return
Income Tax Return
For Single & Joint
Filers With no
Dependents
U.S. Nonresident
Alien Income Tax
Return
U.S. Income Tax
Return for Certain
Nonresident Aliens
with no
Dependents
"A Long FORM". It
is More Complex &
Consists More
Opportunities to
Lower Tax Bills.
"A Short FORM". It
Allows Taxpayers to
Report Common
Types of Income, Tax
Credits, & Tax
Deductions.
"Shortest Individual
Income Tax FORM".
Similar to FORM
1040. For US Non
Residents Either they
are Engaged to Any
Business or Getting
Paid.
You can’t Claim Any
Dependents & You
Can’t be Claimed as a
Dependent on
Someone Else’s Tax
Return.

TAX Return FORM - FORM 1040

TAX Return FORM - FORM 1040A

TAX Return FORM - FORM 1040EZ

TAX Return FORM - FORM 1040NR

TAX Return FORM 1040NR-EZ

TAX Return FORMS COMPARISON
Form
1040
Returns,
59%
Form
1040A
Returns,
29%
Form
1040EZ
Returns,
13%
In this Pie Chart, We’ve explained this
easy graph of America’s average Tax
Return ratio 2015, of individuals or
entrepreneurs Tax Returns Forms
filled as:
* Form 1040 Individual Tax Returns,
* Form 1040A Income Tax Return &
* Form 1040EZ Return for Joint
Accounts with no Dependents.
According to 2015 Tax Returns Ratio

What Software are used to
Prepare TAX?
For United States For Canada For United Kingdom For Australia
 QuickBooks
 ProSeries Tax
 Lacerte Software
 Ultra-Tax
 Turbo Tax
 ATX
 Cantax
 Taxnic
 TaxPrep
 Quicken
 Ufile
 TurboTax
 CCH Software
 IRIS Software Ltd.
 Sage Ltd.
 Thomson Reuters
 Thomson Reuters
 CCH ProSystem
 H&iSoft
 MYOB
 Taxcat

Is it a Good Idea to Prepare
Your Own TAX?
Preparing your own Taxes is a Best Idea if you have the Complete Track of Your Income,
Transactions, Expenditure of Current Tax Year. This Enables You to Save Extra Efforts & can be
easily Transferred to your Tax Software. But This Limits for an Individual or Joint Tax Filing. It
Becomes Complex to Prepare Tax Returns of Small or Medium Sized Businesses.

What Issues can Come up
During TAX PREPARATION?
Penalty for Underpayment of Tax Liquid Federal Tax Policies
Trade or Business Expenses Charitable Deductions
Confusion over Tax Categories Day-to-Day Payroll Errors
Unorganized Financial Statements Summons Enforcements

What is the Simple & Safe
Way-out to Prepare TAX?
The Easiest Way for the Best Tax Returns Preparation is to Hire a Professional Who will be
Responsible to Gather the In-depth Knowledge of Your Books & Update All Business
Expenditures, Payables & Investments to Minimize the Costs, Time & Mistakes. An Expert Can
Help you out With Actual Returns Without Penalty. A Professional Can be a Certified Public
Accountant or A CPA Firm. It’s a Decision of Business Firm, Either to Hire In-house professional
or to Outsource Overseas Rendering their Budget & Priorities.
TAX
BEST

What is In-house & Outsource
TAX PREPARATION?
In-House Tax Preparation Outsource Tax Preparation
When a Business chooses to Hire a
Professional CPA or Expert Accountant to
Prepare their Taxes as a Full Time Employee,
This can be called as In-House Tax Preparer.
When a Business choose to Hire a Professional
CPA, Service Provider or an Agency overseas to
Prepare & Manage their Taxes, This is known
as Tax Preparation Outsourcing.
 Reasons Hire:
Full time Requirement, Budget Priority, Less
Complex Business, Requires Superlative
Communication.
 Reasons To Outsource:
Specialized Skills, Specialized Tools, Seasonal
Needs, Limited Requirements, Temporary Jobs,
Reputed Firms.

How Outsourcing Helps for
Best TAX PREPARATION?
 Cost & Time Save  Fulfilled Deadlines
 No Need to Purchase Software  Negligible Staffing Issues
 Hi-Tech Infrastructure  Quality Assurance
 Expert & Skilled Solutions  Increased Efficiency
 Minimized Errors  Focus on Core Activities
 Customer Satisfaction  Minutest Confusions

Conclusion
It’s obvious that every business owner does not want to pay extra amount of tax and also does
not want any penalty by the court. Thus, The Ultimate Solution for best Tax Preparation is to hire
an expert either in-house or outsource. This will make business owner to focus on his/her core
tasks that will help them out with increased business efficiency and accurate tax returns
preparation.

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Share your Feedback:

References:
o https://www.cogneesol.com/tax-preparation-services
o https://en.wikipedia.org/wiki/Tax
o http://www.wikihow.com/Do-Your-Own-Taxes
o https://www.irs.com/articles/individual-income-tax-return
o http://www.businessnewsdaily.com/6012-tax-tips-for-small-businesses.html
o https://www.cogneesol.com/blog/top-7-tax-preparation-challenges-being-faced-by-cpas
o https://www.cogneesol.com/blog/review-ultratax-tax-preparation-software
o https://www.cogneesol.com/blog/tax-preparation-software-turbotax-vs-cpa
o https://www.cogneesol.com/blog/best-accounting-software-for-small-businesses
o https://www.cogneesol.com/blog/xero-and-sage-accounting-software

Thanks For your Time!!

Tax Return Preparation: A Guide for Individuals, CPA & Small Business

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Tax Return Preparation: A Guide for Individuals, CPA & Small Business