Poston, Denney, and Killpack, PLLC: Finding the Right Certified Public Accountant in Idaho Falls

When considering a Certified Public Accountant there are some important factors to consider. A Certified Public Accountant (CPA) can offer a wide range of financial service needs from personal wealth management to performing business taxes. Before choosing a CPA you’ll need to determine you personal or professional needs.

Our business consultants at Poston, Denney, and Killpack, PLLC would like to help you choose the best Certified Public Accountant by taking a closer look at the following factors:

• Number of services offered
• Number of Certified Public Accountants available in the office
• Communication
• Experience level and Qualifications
• Education
• Reputation
• Cost
• Value

Room to Grow: Number of Services Offered

Choosing a CPA for personal use such as saving for college, personal finance and tax return preparation, and estate planning is an important decision. CPAs are considered to be the most trusted financial advisers with a respected code of ethics and integrity. Doing your due diligence of research your options for a CPA is just as crucial for personal use as it is for your business.

If you are looking for a CPA for your business’s accounting needs it would be wise to consider the amount of growth the office can handle. Although your business may start out small, keep in mind that hiring a CPA could lead to business growth you may never have expected, if you hire well. A one on one contact may work well for you, however if you are hoping for substantial business growth you may eventually need a team dedicated to your account. Consider the big picture of your needs for your business. Does your business just need a tax return prepared and year-end financial information? Or are you looking for more financial planning advice or help with your business plan? It would be helpful for you to consider some of the following questions:

• Will the firm be able to take my business from a small start up to a mid to large level business?
• If the workload exceeds that which an individual CPA can deal with, who will be assigned to my account?
• What business have they worked with in the past or currently that are similar to mine and how are the performing?
• What other services could be helpful in the future for my business?
• Does the firm seem genuinely interested in my business?

Someone To Talk To: Availability of CPA’s in the Office

At Poston, Denney, and Killpack, PLLC we know how busy tax season is for business owners and accounting firms alike. Not surprisingly, the tax season is a busy time for CPA’s. Knowing that there will be someone available for you to ask questions and inquire for information is an important consideration. A firm with several experienced CPA’s is more likely to have an accountant available for you to speak with during busier times. If you only need a CPA for personal tax return purpose, a single individual will fit your purposes well. If your business is growing and you are in need of other services and regular assistance, a larger accounting firm could be the right choice.
Confidence: The Importance of Communication

When looking for a CPA, whether for a large firm or for your individual needs, it is essential to find someone with whom you can establish a healthy working relationship. A Certified Public Accountant can be beneficial addition to your business or personal finances, readily providing answers and assistance.

However, while you do not need to be on excessively friendly terms with your CPA, to take full advantage of their expertise, you will need to remain in regular communication, which is why it is very important to keep looking if you do not feel comfortable maintaining a communicative relationship with you current CPA.

Industry Know-how: Is Your CPA Experienced and Qualified?

When you are looking for a CPA it is important to consider if they have expertise in your particular industry or even a similar industry. With experience in the industry your CPA will have important insights for your growing business. If you want advice on business finances, a CPA that specializes in individual tax returns is not going to be able to help you the way that you need. How can you find out if a CPA has the experience that will best benefit you and your financial needs? Asking straightforward questions about their professional experience and let them explain to you how their expertise will be a beneficial for your financial relationship. You can investigate a CPA further by looking at their online CPA profile pages to see their past education portfolio and any current memberships.

Education and Keeping up With the Times

A Certified Public Accountant will have achieved an undergraduate degree and passed the exam and experience requirements for state certification. Continuing education is an important part of a CPA maintaining their certification. Their continuing education requirements keep them up with the changing accounting standards. In addition to keeping up their education in accounting, once every three years, a CPA’s accounting and auditing practices are thoroughly reviewed by their peers to ensure they are maintaining their professional integrity.

Another important consideration is whether a CPA is a member in the American Institute of Certified Public Accountants. Membership requires accountants to continue their professional education by taking approved course work that will keep them current on the latest accounting and taxation policies.

Ask Around: Great Service Leads to a Great Reputation

It is a great idea to ask around about the experiences your friends and business associates have had with their accountants. A referral from a trusted source is a great way to know that you are on the right track for getting involved with an experienced and reputable CPA. Ask if your friends and associates hear from their accounts not only at tax time but also throughout the year with advice or important proactive and helpful information. Getting the best value from your accountant will mean that they are forward thinkers that provide great service.

If you are having trouble finding a referral from people you know, consider asking people in a similar industry as you for referrals of their accountants. Explain that you are looking for a trusted accountant with expertise in your particular industry.

Remember that your accountant is meant to be a trusted advisor for either your personal finances or your business venture. The relationship between you and your accountant needs to be a trusting one so that you can reap the greatest benefit from the relationship.

Even with a great referral from a trusted source be sure to take time to interview firms and the individual candidates. Don’t be shy! This is your financial future and you want to do all that you can to ensure that it will be in good hands. Ask for additional references and follow up with them. Before you make a decision, be sure to interview at least three CPS’s. Perform your due diligence to get your personal or your business’s financial future off to the best start with a great Certified Public Accountant.

Cost: Be Sure to Check Out the Competition

Money, money, money! Accountants are great with numbers and that is why you are paying them. Inquire about hourly rates and fees. Request quotes for what you can expect to pay for services. Compare rates with several professionals before settling on one. You may save you or your business a whole lot of money by taking this important step in your decision making process.

And Above All, Value

At Poston, Denney, and Killpack, PLLC we would like to leave you with this thought, that the most important aspect you must consider as you search for a Certified Public Accountant, is the value they bring to the relationship. A CPA should be helping your business to grow, should be ensuring that your tax returns are the highest they have ever been, should be supplying you with peace of mind during the stressful tax season by knowing your accounts are in competent hands. Whatever the reason that you have sought out a CPA, you need to see that they are bringing indispensable value to your professional relationship.

If you are in search of a CPA in the Idaho Falls area, Poston, Denney, and Killpack, PLLC is here to help if you have further questions on how to choose a CPA that will best meet your needs. We want to help you get the most out of your personal or professional finances and our professionals know how to get you there. Ask us for our references, additional services for both your personal and business finances. For your business needs we have great services for small business accounting, help with strategic business planning, cash flow management and everything you need to get your business off to a great start. We are here to make your money work for you.

The historic events of the United States tax law

Understanding our history can help us make better decisions in the future.

The United States went through many different tax laws that have made our nation what it is today. United States tax law history began with the British trying to tax the colonies, which lead to the American Revolution. Since then, we have been in charge of our own taxes and we continue to make this a great country. Poston, Denney, & Killpack, PLLC respects our history and what we have gained.

The Stamp Act

In 1765, the Parliament of Great Britain enforced a tax on the colonies which required them to use officially stamped paper for printed materials. This special paper was made in London and was embossed with a revenue stamp. Without this stamp, the paper would be worthless under British law. The tax charged to the colonies had to be paid in British currency as money printed by the colonies was unacceptable. This tax was to help pay for the troops that Great Britain had stationed in North America during the costly Seven Years’ War. Americans were not fans of being taxed without a voice in British Parliament, and were especially suspicious of troops that they felt they didn’t need or want. With the slogan “No taxation without representation,” they set up petitions and protests. The Stamp Act Congress was the first real stand against the taxes that Britain was enforcing. The Sons of Liberty was formed by protesters and demonstrators, using violent means to make their complaints heard. The Stamp Tax was never effectively collected as the distributors of the stamp tax were frightened and quit. Parliament eventually repealed the tax in 1766, effectively killing it as a United States tax law.

The Townshend Acts

This 1767 act, named after Charles Townshend who was the Chancellor of the Exchequer, had several parts with each serving a different purpose. The Revenue Act of 1767 taxed the colonies on goods that were imported which the colonies couldn’t produce themselves. The money from paper, paint, lead, glass, and tea was originally intended to pay for the British military stationed in the Americas. The money, however, was redirected to the colonial governors and judges to maintain loyalty to Great Britain. The Indemnity Act, the Commissioners of Customs Act, the Vice Admiralty Court Act, and the New York Restraining Act were all initiated under the Townshend Acts as well. These acts were created to force compliance with trade regulations, to punish New York for not agreeing with the Quartering Act, and to give the British Parliament the right to tax the colonies. The colonies resisted and the British troops gathered in Boston to protect the officials that were supposed to enforce the acts. After a large crowd gathered and were verbally abusive to the troops, the soldiers fired into the crowd without an order, killing three people instantly. Two more people would die later due to injuries sustained during the shootings. This event became known as the Boston Massacre of 1770. British Parliament eventually repealed most of the laws but perpetuated the tax on tea because they felt that they had the right to tax the Americans. This United States tax law would go on to cause a lot of trouble for the British.

The Tea Act

To import tea to the Americas, the British East India Company sold to a middleman who then organized and sent the shipment to the colonies. Once it arrived in the Americas, it was taxed and then distributed. To bypass the tax, American merchants would instead buy cheaper foreign tea producers, skirting the tax entirely. When the British East India Company faced bankruptcy, the British stepped in. They removed the middle man as distributor, and shipped directly to America. The price of the East India tea was now on par with alternative exporters, the tea tax remained. The tax on tea continued to fund activities under the Townshend Act, indirectly forcing the colonies to support Parliament’s right to tax. When the colonies understood what Parliament was trying to do, they harassed the distributors of the tea and were successful in stopping the tea from being distributed. The Boston Tea Party was born of this resistance.

The Boston Tea Party

When Parliament tried to force the colonies to buy the British East India Company tea that they had taxed, the colonies resisted. On December 16, 1773, disguised as American Indians, the protesters gained access to a boat laden with tea and proceeded to dump its contents into the Boston Harbor, thus ruining the tea. Parliament replied with force and the American Revolution begun.

Tariffs in America

The goal of a tariff is collect money that will fund the federal budget. The Tariff Act of 1789 was passed by the 1st United States Congress. The United States tax law of tariffs comprised 95% of the federal government’s revenue until 1913, when the Federal income tax was passed.

The Whiskey Rebellion

After the American Revolutionary War, the newly formed federal government was in debt. The U.S treasury secretary, Alexander Hamilton, came up with the idea in 1791 to tax all distilled spirits to pay this debt. Because whiskey was the most popular spirit as the time, the tax was called the “whiskey tax”. Farmers who made whiskey from leftover grain and corn used the spirits as a form of currency and deeply resented the tax. Protesters eventually gathered in Pennsylvania, attacking the home of General John Neville who was the tax inspector. Washington got word and sounded the alarm to the governors of Virginia, Maryland, New Jersey, and Pennsylvania, sending 13,000 militiamen quell the violence. It worked; the farmers disbanded before the armies arrived, demonstrating that the United States tax laws, could eliminate violent protests by dissenting citizens. In the wake of these events, the whiskey tax remained difficult to collect and Thomas Jefferson’s Republican Party repealed the tax.

United States Income Tax

This United States tax law is collected by federal, state, and local governments. It is applied to your income by a tax rate that fluctuates with economic conditions.
The 16th Amendment to the U.S. Constitution: The 16th amendment, approved on February 3, 1913, allows Congress to tax income without sharing it with the states and without considering census data.

United States Estate Tax

The Gift and Estate Tax is a two part tax. The first part is the estate tax that taxes estates that are transferred after the death of the owner. The second part is a gift tax which applies to property that is transferred during someone’s life. This United States tax law regarding estates affects property that is passed on via a will or, if there is no will, whatever the state law implies.

Payroll Tax

Another name for this United States tax law is the Federal Insurance Contributions Act tax or FICA. Social Security and Medicare, which help retirees and the disabled, are funded by this tax, imposed on employees and employers.

Poston, Denney, and Killpack, PLLC can help you navigate through your own taxes and understand the United States tax law. Give us a call and let us know what we can do for you.

Keep The IRS Out Of Your Life By Avoiding A Tax Audit. If You Live In Idaho Falls, We Can Help!

The proverbial IRS taxman is the last person you want darkening your doorway. The IRS has reported that 1 in 200 taxpayers has a chance of being audited every year. Keep yourself or your business out of those statistics-here are some tips!

Ways You Can Avoid A Tax Audit

Luckily, there are ways you can reduce your chances of being audited. Here are a few to be aware of:

• Make sure you computations and figures are correct
• Keep receipts and get appraisals for all charitable contributions of $250 or more
• Fill out tax forms completely and carefully and leave nothing blank
• Keep copies of your returns for several years
• E-file if possible

Let’s discuss these a bit more. You want your numbers to be right. The IRS uses computers to cross check your returns with any other information that it has for you, from banks, employers, etc. So be sure you have accounted for everything and that your numbers match. Otherwise you could be flagged for an audit.

Charitable contributions can change from year to year, and if your tax return is noticeably different from last years, the IRS will want to know why. Save all of your contribution receipts. You should also include an explanation (in the form of canceled checks, receipts, etc).

Be sure to fill out tax forms completely and leave nothing blank. Don’t leave anything for the IRS to assume or wonder about. The computers will flag any discrepancies in math. You want to draw little or no attention to your return, so if it sails smoothly past the computers and the agents, that’s a good thing.

Be sure to keep copies of several years returns. The IRS can audit you from 3-7 years back for discrepancies. Be sure you are able to defend yourself by keeping your returns.

E-file if you can. The error rate for a paper return is 21% and the rate for e-filing is 0.5%. Less errors equal less flagging and attention from the IRS. The accountants and tax preparers at Poston, Denney & Killpack PLLC in Idaho Falls are familiar with these and other ways to avoid a tax audit. They can help you prepare your taxes, tax planning, and also helping you with any problems you may encounter with the IRS should you be audited. They are located In Idaho Falls and if you are trying to avoid or facing a tax audit, Poston, Denney & Killpack PLLC would love to help you maneuver through it! They are affordable, experienced and ready to help you this tax season avoid those IRS agents and their audits. In Idaho Falls call us at (208) 522-0886.

[A tax loophole is] something that benefits the other guy. If it benefits you, it is tax reform. ~ Russell B. Long

Our Idaho Falls CPA's can help your small business

No small business owner wants to endure the stress and time drain associated with an audit by the Internal Revenue Service. While it is impossible to entirely prevent a tax audit, the fact is that working with a skilled Idaho Falls tax service can help you to reduce the risk of an audit. With small business tax services from a skilled team of accountants like the professionals at Poston Denny & Killpack, PLLC, you will benefit from personal attention from tax experts available on a year-round basis. With a closer look at how our tax services in Idaho Falls can benefit you, you may decide to schedule an appointment with our team today.

How to survive an IRS audit

One of the many ways that our Idaho Falls tax service can benefit you is by ensuring that your taxes are prepared properly. The fact is that errors in tax returns of small businesses are one of the most common reasons why an audit is triggered, so our small business tax services in Idaho Falls can be used to ensure that your tax return is correct and error-free before it is filed. In addition, tax services in Idaho Falls can be used to help you track business expenses and to identify tax deductions. You may not be certain which of your expenses are deductions or how to plan for and utilize tax deductions regularly to decrease your tax burden. Through the efforts of our Certified Public Accountants at Poston Denny & Killpack, PLLC, you will find that we truly can decrease your risk of an audit while ensuring that your tax liability is as low as possible.

The first step is to contact us

If you have never considered using an Idaho Falls tax service in the past, you can see why there are clear reasons why you should take time to think about this today. Through our professional small business tax services in Idaho Falls, we can most easily streamline your finances, prepare your taxes and minimize your tax burden while also decreasing the likelihood of an audit. If you believe that your company would benefit from our Idaho Falls tax services, contact our office today.