Filing income tax returns can be a daunting task. The laws and regulations governing income tax can be voluminous and convoluted, making it stressful and time-consuming for individuals. When tax season comes around, the question on most people’s mind is, “Where can I find the best income tax preparer near me?.” This article will guide you to find the perfect income tax preparer and provide some insight into the precise accounting term ‘CFC GILTI’.
Qualities of an Exceptional Tax Preparer
Approaching someone to manage your taxes is not a decision to be taken lightly. By entrusting someone with your financial information, you need to ensure that they are knowledgeable, reliable, and professional. They should be well-acquainted with the tax laws and reforms, maintain up-to-date knowledge, and adopt ethical practices. An exceptional tax preparer might also offer insight into ways to legally reduce your tax liability and guide you through potential audit situations.
Finding an ‘Income Tax Preparer Near Me‘
Begin your search by seeking recommendations. Consult your family, friends, colleagues, or even a trusted advisor. Aside from personal recommendations, the IRS also has a directory of federal tax return preparers. After shortlisting potential candidates, check their qualifications and verify their respective Preparer Tax Identification Number (PTIN). It’s essential to remember that cost should not be the sole determiner. A consultative and attentive tax preparer might come at a higher fee but could save you substantially in the long run by preventing costly mistakes.
Understand the Concept of CFC GILTI
As an individual or business owner, it is beneficial to grasp various tax principles impacting your tax returns. One such concept is known as ‘CFC GILTI’, which stands for “Controlled Foreign Corporations’ Global Intangible Low-Taxed Income”. Introduced as part of the Tax Cuts and Jobs Act (TCJA) of 2017, this provision directly impacts U.S. shareholders of CFCs. It aims to prevent U.S. companies from shifting profits to low-tax jurisdictions. This complex clause is another reason why partnering with a skilled tax preparer is crucial.
The Role of a Tax Preparer in Navigating ‘CFC GILTI’
The Tax Cuts and Jobs Act made significant changes to the U.S. tax code. The introduction of GILTI was a response to growing concern that U.S. corporations were stashing profits offshore to avoid higher domestic corporate tax rates. Without a thorough understanding, the CFC GILTI provision can lead to substantial tax implications. An expert tax preparer, familiar with these reforms, can help discern your Controlled Foreign Corporation (CFC) status and your tax liability under the GILTI provision.
Conclusion
In conclusion, investing in a capable tax preparer eliminates much of the stress and confusion that comes with tax preparation. As you consider, ‘where is the best income tax preparer near me?’, ensure to consider their qualifications, expertise, and their understanding of complex regulations like the ‘CFC GILTI’ provision.