Being a small business owner is hard enough, but making sure your taxes are filed correctly is an entirely separate challenge that many business owners are not prepared to handle on their own. You don’t want to be audited and find out you’ve not been filing correctly, this can be extremely costly and in some cases, can put you out of business. This is where a bookkeeper comes into play. We keep your books in order, and can anonymously request a Tax Ruling which can be very helpful in making your tax situation simpler.
A Tax Ruling is a written document from the Department of Revenue which tells a business how they should be reporting and paying their taxes. Tax rulings are specific to your situation and cannot be used for another person or business other than the one that it is filed for. A Tax Ruling also informs the taxpayer if certain actions within their business can result in a tax violation.
This is especially helpful in unique business situations or large transactions. For businesses in industries such as jewelry, real estate, retail, and automotive, there are large transactions taking place often and the tax laws can be unclear.
Having a bookkeeper apply for a Tax Ruling is the best way to ensure that you are getting the most accurate information. It’s also beneficial because we can request the ruling without providing your company information to the DOR, thus helping you avoid a potential tax liability if you’ve been doing things incorrectly.
We have specific knowledge about your situation and understand the application process. The filing process is technical, so submitting an accurate request is very important and can be the key to getting an accurate answer from the DOR. Every business has different needs and it can be difficult to navigate tax agency conversations without a deep understanding of the system.
It is recommended that all businesses request a Tax Ruling, especially high-end businesses and businesses that are doing frequent transactions with large amounts of money. The tax laws surrounding these transactions are more complex than other business situations and it can be very costly if a business does not file their taxes correctly. Having a bookkeeper not only keeps a business’s books and transactions organized, but also getting a Tax Ruling can help ensure that everything is reported correctly when it comes time to file your taxes.
