Enhancing Estate Tax Compliance

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Taxes includes all the charges that a government organization imposes on an individual or a legal entity and which in return helps to fund various public expenditures. Individuals or entities that evade, resist or fail to pay their tax are likely to be punished by the law. Taxes imposed on an individual or legal entity may be direct or indirect which can be paid by offering labor equivalent of money. For one to efficiently pay their tax, it is important to keep their daily financial records for ease of filling returns. A business or organization should, therefore, adopt the bookkeeping system for recording all their financial transactions. Read about Bookkeeping Lebanon

Businesses, institutions and organizations carry out various business transaction on daily basis which requires recording that is usually done through bookkeeping which is a business accounting process. Financial transactions in an organizations which can be done either on cash or credit basis are several and may include purchases, sales, payments, and receipts. The single-entry bookkeeping system and the double-entry bookkeeping system are the two major systems used in businesses and organizations in bookkeeping. Recording of financial transactions of incomes and expenses in organizations or businesses are done on one account in single-entry bookkeeping system. Recording of financial transactions in at least two accounts such as liabilities, assets, expenses and revenue account is done when working with the double-entry bookkeeping systems. Computerizing the bookkeeping helps reduce the paper work and also increases the accuracy when recording various financial transactions in businesses and organization. Click Enroll Agent Lebanon

Taxes imposed usually vary depending on the income levels, one’s property, goods, and services one purchases and other types likely to be imposed. Estate tax is a type of tax paid depending on one’s property. An individual who inherits property from a diseased person upon their death is likely to be charged some tax on the property referred to an estate tax. The tax is usually levied if the value of the property that has been left behind for the heir exceeds the limit set by the law in a given state. The maximum limit set by a state and the procedure to be followed in filling the estate tax if the maximum limit is exceeded usually govern the estate tax preparation.

Estate tax preparation can be made easier by an enrolled agent who has advanced knowledge in tax law. The enrolled agent helps in ensuring the amount of estate tax one is charged is minimized while ensuring that compliance with the law is maintained. Financial statements may present some estate tax information hence it is necessary for enrolled agents to have knowledge in accounting practices. Opinions that do not present the actual financial situation can arise when enrolled agents perform accounting and audit tasks hence are restricted.

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