Why Tax Compliance and Reporting is Important?
Keywords: bookkeeping, tax preparation services, compliance tax management system, tax management, and compliance
What is Tax Compliance?
Legislation across the globe requires individuals and businesses to report their earnings and pay taxes accordingly. They need to be compliant with tax laws in the country. Bookkeeping and tax compliance are challenging when working with organizations established overseas.
Tax compliance involves being aware of tax requirements set forth by the government and tax authorities nationally and internationally. Individuals who have not completed their tax return filing before the deadline are considered noncompliant.
Businesses have the responsibility for aligning their accounting, reporting, and tax filing processes following those governing tax laws. Business entities can be tax compliant by paying their sales tax, property tax, excise tax, employment and payroll taxes, franchise taxes (in certain states), and taxes on their dividends.
Why Tax Compliance and Reporting is Important?
Any failure to the Income Tax Return (ITR), reporting, or international tax laws is a noncompliance that leads to heavy penalties from the Internal Revenue Service (IRS) in the US. Besides various penalties, it impacts brand reputation.
Any individual or company that faces trouble with the IRS due to denied or delayed tax returns leaves themselves at risk. To avoid any consequences, tax compliance and reporting in a timely manner is a must for businesses and individuals.
Challenges with Tax Compliance and The Need for Professional Tax Accounting
Companies must adhere to both state and federal tax laws. While the federal tax rate is a flat rate, the state tax rate differs in different states in the US. Businesses that have wings outside the borders need to observe and report international taxes also. It is crucial that the different tax rates applied to a business are observed, reported, and properly calculated. Therefore, it becomes a complex process.
Tax legislation changes with time at the state, federal, and global levels. Businesses have to adjust their reporting and tax filing to align with the new laws.
The complexities involved in filing tax returns are increasing, driving more businesses to turn to tax professionals for assistance in the compliance tax management system.
BFAG’s Role in Tax Management and Compliance
Boston Financial Advisory Group (BFAG) specialized teams offer Tax Planning, Tax Preparation Services, Income Tax returns, and Tax Management services to corporates and individuals.
For businesses, they offer services for:
- Tax Advisory and Compliance
- Identifying Tax exposures
- Documentation
- Tax preparation services and review of ITR
- Over the boundaries of tax filing
- Tax accounting under IFRS, IN GAAP, or US GAAP
- And others
Tax compliance services at the individual level are personalized for each individual. The services include:
- Calculation of Indian and US tax deductions and claims
- Treatment of expenses incurred abroad
- Foreign tax credit claim in the US
- Taxation for migrants to the US
- Taxation for ESOPs and other plans
- And others
Thus, the specialized tax compliance services of BFAG remain tax compliant with changing rules.
Boston Financial Advisory Group provides the best accounting services, financial services, Tax Return Preparation, Compilation & Reporting. We have a team of experienced professionals who can be ready to assist you.
Contact BFAG in case of any queries.
info@bostonfagroup.com / sales@bostonfagroup.com
USA: +1 6099377291
Bangalore: +91 80 2572 4800
Pune: +91 7420061235
