Sacramento Accountant for Income, Estate, & Gift Tax Compliance

Cook CPA Group

When taxpayers make efforts to comply with the tax laws in the jurisdiction in which they live and do business, it is known as tax compliance. Taxpayers often use the help of experienced accountants to assist them with tax compliance for all types of taxes including income taxes, estate taxes, and gift taxes.

Get in touch with an accountant soon if you would like to ensure that your income, estate, and gift taxes are in compliance with local and federal tax laws. The income, estate, and gift tax accountants that work with Cook CPA Group are able to help taxpayers throughout the Sacramento area with tax compliance. Contact the Sacramento income, estate, and gift tax compliance accountants from Cook CPA Group to schedule a free consultation to discuss your options regarding tax planning and compliance. Call (916) 432-2218.

How Voluntary Compliance Can Affect You

The IRS assumes taxpayers are honest and forthcoming when they file and pay their taxes. This is known as voluntary compliance and it is the basis for the tax system in the United States. Voluntary compliance assumes that taxpayers are truthful when they report their income and claim their credits and deductions rather than whether or not the taxpayer pays the balance that they owe on time.

“Voluntary” in voluntary compliance means that taxes are not completed by the government, but rather by the taxpayer. The responsibility of calculating what is owed in taxes and reporting it accurately and in compliance with tax laws is on the individual taxpayer. The IRS knows that it is unrealistic to expect all taxpayers to voluntarily comply all the time—audits are used to address the IRS’s recognition of the fact that not all taxpayers are truthful when they report their income and make claims and deductions on their taxes. Taxpayers are also expected to adhere to tax code while they are completing their tax returns. Using the assistance of an experienced accountant can help taxpayers comply with their jurisdiction’s tax laws.

Understanding Tax Non-compliance

Failing to be in compliance with tax laws can result in consequences for taxpayers in the United States. Under-reporting incomes or inflating deductions can lead taxpayers to incur interest charges and fines. Failing to file tax returns altogether will result in a substitute return, which is disadvantageous for taxpayers. This substitute return is filed by the IRS and is likely to neglect to include benefits that the taxpayer is entitled to.

Failure to comply with tax code may result in missed financial opportunities for taxpayers. Being unaware of the amount that they have to pay can make it more difficult for taxpayers to plan for the future. Furthermore, cases in which the taxpayer fails to comply with tax code are considered to be a type of tax evasion or tax fraud, which can result in jail time or severe fines for the taxpayer.

Accounting Services for Income, Estate, and Gift Tax Compliance

Tax laws are complex and change frequently. It’s difficult for taxpayers to remain aware of the constant shifts in tax laws and comply with them. Accountants pay close attention to tax laws and the ways in which they change so they are able to inform taxpayers of what they need to do to be in compliance.

Accountants can also help taxpayers maintain compliance with tax code by providing them with assistance as they navigate complicated and nuanced situations. For example, taxpayers can comply with the complicated requirements of multi-state taxation with the help of an accountant. Accountants can also help taxpayers file taxes for both individuals and for businesses. Some taxpayers may need extra assistance complying with foreign taxes (such as the Foreign Account Tax Compliance Act, also known as FATCA, and the Foreign Investment in Real Estate Property Tax Act, also known as FIRPTA).

Accountants can assist taxpayers with all types of taxes and comply with their correlative tax codes. However, there are a few types of taxes that taxpayers frequently need assistance with. These include the following.

  • Income tax compliance – To make sure that they are compliant with their income taxes, taxpayers should be sure to be honest when they report their income and claim credits and deductions.
  • Estate tax compliance – Estate taxes are taxes on property such as cash or real estate that is transferred to an heir of a deceased person. The only people that are required to pay estate taxes are those that have a certain amount of wealth since estates that are below a certain amount are exempt from the tax. Still, accountants can help taxpayers that are including compliance with estate tax laws in their long-term financial plans.
  • Gift tax compliance – Accountants can help taxpayers comply with code pertaining to gift taxes by helping them gain an understanding of the threshold of exemption. Taxpayers should note that gift taxes and estate taxes are often grouped together into one category.

Sacramento Accountant for Income, Estate, & Gift Tax Compliance

It’s important for income taxes, estate taxes, and gift taxes to be paid on time and in compliance with the law. Use the help of a tax compliance accountant from Cook CPA Group in Sacramento to ensure that your income, estate, and gift taxes are filed and paid in compliance with local, state, and federal tax laws. Call (916) 432-2218 to schedule a free tax consultation today.

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