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Tag Archive for tax mistakes

Client Financial Mistakes to Detect and Avoid

Kazim Qasim, Tax Advisor

Clients (and accountants) are human whether we like it or not. And as we know, humans make mistakes. Identifying and fixing financial mistakes is a large part of the effort expended by clients and accountants. An analysis of these efforts make up the crux of this article.

According to the AICPA’s Journal of Accountancy, clients can face various financial and business predicaments: over-extension, employee problems, customer losses, and even bankruptcy. They also may lack proper management training, and they may procrastinate or overreact when problems surface. That’s when they call their CPAs in a panic. Sadly, clients may see their fortunes diminish if they do not take a more proactive approach to managing their personal or business finances. Read more

Biggest Mistakes Made by Tax-Exempt Organizations when Filing Tax Returns

John Stancil

Even though non-profit organizations can be tax-exempt, they are still required to file a return with the IRS. Many individuals, including those associated with non-profit organizations, do not understand the tax obligations of a non-profit organization.

I have compiled a top ten list of mistakes made in regard to taxes for these organizations.

• Not understanding the difference in non-profit and tax-exempt. An organization is a non-profit when it registers with the state as a non-profit organization. This state registration does not confer on it tax-exempt status. The organization must file a Form 1023 with the IRS to apply for, and receive tax-exempt status.

• Not filing a return. Because the organization is tax-exempt, some have a belief that the organization is not required to file a tax return. All tax exempt organizations, with the exception of churches, must file a Form 990 annually with the IRS. Read more