Question

CPAs and accountants are trained to understand the Internal Revenue Code and reference the regulations to get further guidance. Discuss what other services you can use to get more information and updates about the tax issues affecting your clients. What can small businesses do to keep up with the constantly changing tax laws? Where do you draw the line between what business owners need to know and what they should rely on their tax advisor to keep track of?

Answer 1

For any person, whether a CPA, Accountant or other person, Internal Revenue Code is the main source from where he can get complete information about the changing regulations. However, there are other sources too from which information regarding the tax issues can be availed:-

1) From the various IRS (Internal Revenue Services) publications and guides.

2) From the websites of the various state department of taxation and finance.

3) From the websites of the city where city tax is applicable. (Eg, New York)

4) From the various case laws which are published by the IRS.

5) Other publications by some private institutes practising in tax related services.

Small businesses can register themselves free of cost with IRS and other private websites to get the information about the changing tax issues and getting regular updates from the same. They can even get the information regarding the same by watching various videos on various websites.

Business owners need to know the slab in which their income falls, their tax rate, their tax liabilility and the calculation of their taxes. They should rely on their tax advisor that he has all the necessary information of one client for their calculation of tax and will not calculate tax liability more than what one is liable for.