GUIDELINES IN FILING INCOME TAX RETURN 2010

The help of the accountant at the outset of every business venture is a must not just for regulatory but for practical purpose as well. It is of utmost importance to become well-versed with all the business taxes and permits as well as the regulations that govern local business. The first step, an accountant or bookkeeper’s duty is to educate the taxpayer about the different taxes that business is expected to pay. It is imperative that taxpayers understand the accounting principles as adopted by the tax agency. There are provisions identified in our National Internal Revenue Code that specify deductions that could lower the taxes to be paid. Indeed, tax planning and managing a business, and claiming all legal exemptions and deductions can greatly help. The general rule in tax planning is that one should find ways and means to reduce taxes legally by using the benefits the NIRC provides, such as the proper use of deductions, the lowering of declared gross income where allowed, and the proper use of tax credits. A good example is how a company can decrease its gross income by only recording income once it is actually received. A taxpayer can also use tax credits to lower his tax payments.

As a taxpayer, it is important to keep your records organized your records organized. Business owners would do well to keep their books up-to-date and professionalize their backroom operations. They showed keep all expense receipts, record all transactions, no matter how small; follow tax payment calendars; pay all taxes in time and avoid being penalized.

Getting a good grasp of what are deductible expenses is one thing, but keeping and tracking your records is something that’s better done by professional accountants. It’s risky and often foolhardy to engage in bookkeeping without an accountant. If you don’t have any idea about tax matters, there are online tax services like TurboTax that could guide you to prepare your Income Tax Return and even file the irs extension form 2009.