Tax and audit services are growing in demand across various business sectors. This is partially due to audit rates: Small C corporations (total assets less than $10 million) faced an overall audit rate of 1% in 2014. Companies with assets between $1 million and $5 million were audited at a 1.2% rate, and those with assets between $5 million and $10 million faced a 1.9% rate. C corporations with assets between $10 million and $50 million were audited at a 6.2% rate.
And with a new tax bill in place, it’s no secret that tax and audit services can help your company with just about everything when tax season rolls around. But before you choose one to take care of your business’s financial interests and needs, it’s important to be aware of the many myths that surround audit and tax preparation services. Here are just a few myths and misconceptions regarding tax and audit services.
A tax planner is just a fancy term for an accountant
There may be some shared knowledge between these two professions, but the fact is that they are largely different in what they work with every day. An accountant is definitely necessary to any business structure of any size, but a tax planner is who to call if you want to increase profits, lower your taxes, and achieve greater overall wealth.
My business is an LLC; I don’t need to pay self-employment taxes
This may seem like it has some logic behind it, but the fact is that becoming a limited liability corporation doesn’t automatically make you exempt from having to pay self-employment taxes. There are many more factors to be considered, and only a professional tax services provider can help you determine which filing status is right for your business.
It’s not easy to lower tax liability — if it was, all business owners would know about it.Finally, this widespread misconception is what prevents businesses just like yours from taking action and putting faith in a tax and audit service to provide financial expertise. But there are many tax planning experts that know everything about the tax code and are truly willing to go the extra mile to help your business regain financial prosperity.
Ultimately, understanding the truth behind these myths is the key to making the most of your financial opportunities this tax season. For more information about tax and audit services, contact CST Group.