Roseville, CA Accountant for Income, Estate, & Gift Tax Compliance

Cook CPA Group

Tax compliance is, essentially, a taxpayer’s effort to follow U.S. tax law and pay the required amount at the proper time. Tax compliance can be done with the help of an experienced accountant, and it can be done with any type of tax, including income, estate, and gift taxes.

If you would like to use the help of an accountant to ensure that your taxes are in compliance, contact an experienced Roseville income, estate, and gift tax compliance accountant from Cook CPA Group. The experienced tax accountants that work with Cook CPA Group help people from all over the Roseville area make sure they are paying their taxes in compliance with federal laws and IRS expectations. To learn more about how you can use the help of Cook CPA Group for your income, estate, and gift tax compliance, contact us today by calling (916) 432-2218.

Understanding Voluntary Compliance

The tax system in the United States is based on the concept of voluntary compliance, which means that the IRS assumes that taxpayers will be honest and forthcoming when they report their income and calculate their taxes. The concept of voluntary compliance is generally not very concerned with whether or not the taxpayer files their tax return and pays the full amount; rather, it is concerned with whether the individual taxpayer is honest when they report their income and claim deductions.

Compliance is “voluntary” only in the sense that taxes are completed by the taxpayer and not by the government. Taxpayers are responsible for calculating what they owe in taxes and then reporting it accurately; taxpayers are expected to voluntarily comply with all of the relevant tax laws. The IRS recognizes that not all taxpayers are honest in their reporting, which is why the IRS occasionally performs audits of taxpayers.

Voluntary compliance also means that taxpayers are expected to adhere to the tax code when they complete their tax returns. Since the U.S. tax code changes frequently, it’s helpful to use the assistance of an accountant to ensure that your taxes are in compliance.

How an Accountant Can Help with Income, Estate, and Gift Tax Compliance

Since tax laws are subject to frequent changes, it’s difficult to stay up to date on all of them at once. Because they pay attention to all of the changes that are made, accountants are always aware of updates or adjustments made to tax laws at the local, state, and federal levels. An accountant can help taxpayers pay their taxes by maintaining a keen awareness of the tax code as it applies to each client.

When it comes to tax compliance, accountants can also aid taxpayers by helping them navigate complicated and uncommon situations and circumstances. For example, accountants can help taxpayers comply with the requirements that come with multi-state taxation or with filing both individual and business taxes at the same time. Accountants can also help taxpayers comply with foreign taxes, such as those related to the Foreign Investment in Real Property Tax Act (FIRPTA) or the Foreign Account Tax Compliance Act (FATCA).

While accountants can help taxpayers comply with the codes related to many types of taxes, there are a few common issues with which individual taxpayers often need assistance. These include:

  • Income tax compliance – Income tax compliance means that the taxpayer is honest and accurate in their reporting to the IRS regarding income and any deductions that they claim.
  • Estate tax compliance – Only the wealthiest people are required to pay estate taxes, meaning that these taxes are not a concern for most Americans. However, an accountant can help taxpayers pay their taxes so that they plan for the long-term health of their estate and make sure that it is in compliance with the U.S. tax code.
  • Gift tax compliance – To ensure compliance with the U.S. tax codes regarding gifts, accountants will help taxpayers understand the amount that they can give away before the IRS imposes taxes on the transaction. Gift taxes and estate taxes are often grouped together as one category of taxes.

Penalties for Not Complying with U.S. Tax Law

Using the help of an accountant to make sure that you are in compliance with U.S. tax codes can help you avoid severe financial and legal consequences. Under-reporting income or overstating deductions can result in fines and interest charges, and failing to file a tax return at all will result in a substitute return being filed by the IRS, which can deny the taxpayer benefits that they are likely owed.

Failing to comply with the tax code can also lead to missed opportunities for planning for the future. If a taxpayer does not have control over the amount that they can expect to pay in any given year, they are less likely to know how much they will have to invest in the future. In some cases, failure to comply with the tax code is a type of tax evasion or tax fraud, which can result in severe fines and even imprisonment.

Roseville Accountant Available for Income, Estate, and Gift Tax Compliance

It’s important for individuals to make sure that their taxes — including income taxes, estate taxes, and gift taxes — are in compliance with the law and paid on time. Use the help of an experienced income, estate, and gift tax accountant from Roseville’s Cook CPA Group to keep your finances secure. Call (916) 432-2218 today to speak with a professional or set up your first consultation.

We offer services for executives, business owners, and individuals.
Find out how we can help you.