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A Guide To Form 990 For Tax-Exempt Organizations

What is Form 990? Although many nonprofit organizations are exempt from paying federal taxes, the IRS requires tax-exempt organizations to file Form 990 for informational purposes. The IRS uses this informational return to determine whether you're still exempt from...

5 Critical Tax Tips For Nonprofits in 2019

No one enjoys filing taxes, but it can be especially problematic for nonprofits. Many nonprofits focus on their cause so much that they neglect proper organization. As a result, they deal with disorganized records and systems, and a lack of clarity around tax issues....

THE SMART BUSINESS OWNER’S LIST OF TAX DEDUCTIONS

For a business owner, taxes can be overwhelming and cumbersome. Tax deductions allow you to save thousands of dollars each year on your taxes and make tax filing a much more bearable experience. In this post, we'll list some of the tax deductions you can use to...

The Smart Business Owner’s List Of Tax Credits

One of the best ways to cut costs as a business owner is to take advantage of all the tax deductions and tax credits for which you're eligible. As a business owner, you're concerned with the bottom line--increasing your net profits. That probably means you spend most...

PRESS RELEASE: Cassidy Jakovickas, CPA of Fresno, CA Appointed to Intuit’s Accountant Council

Select Panel Advises on Products and Services that Accountants and Their Clients Want Most             FRESNO, CALIFORNIA – June 4, 2019 –Today, Intuit, Inc (Nasdaq: INTU) announced that Cassidy...

Beyond The Numbers: What We’ve Been Reading

Although our team loves using numbers and spreadsheets to help our clients make the best financial decisions, we also enjoy reading great books. Staying well read on both fiction and non-fiction books helps us hone our imagination and introduces us to new, sometimes...

Looking Back At April

It’s hard to believe that we’re at the end of April, but it’s true! This month, we helped our clients wrap up another great (and busy) tax season. There was, as always, a lot of paperwork, emails, and nail-biting involved in the days preceding April 15, but that’s all...

5 Last-Minute Tips For Filing Taxes in 2019

Well, April 15 is almost here, and the tax-related panic is thick. If you haven’t filed your 2018 tax paperwork and are rushing to get your taxes in by the deadline, we’ve decided to give you some last-minute tax advice that will hopefully help ease your stress....

An Introduction To Cybersecurity for Business Owners

Keeping your sensitive business and customer data secure has never been more critical. Whether you are a small business or a national corporation, you can't relax your defenses against those criminals seeking to take advantage of lazy cybersecurity policies. Virtually...

March News Roundup

Wow! It seems like we just started March and we’re already moving into April! As we move into the final stretch of tax season, we’re recapping this month’s news for you, just in case you missed it amid the tax-related hubbub. MBS Accountancy: November Review This...

What do Taxes do for me?

Reading Time: 2 minutes

taxNo one likes paying taxes, but it is not like we have an option. Well, we could just not pay… go off the grid, live in the mountains, and grow our own food, but this is not a viable option for most but, everyone has to do it anyway. So if we have to pay we might as well know What do taxes actually do for us, and where in the world does does all that money goes? The answer to these questions is obviously very simplified below, the true answer would take Phd. in taxation and access to the inner workings of our political system. Lets keep it painless.

Taxes are the primary source of income for federal, state and local governments. They fund every project that is dedicated to public interest, from schools to roadways. They also provide funding for all social services and provide the salaries for any and all public employees, such as teachers, policemen, firemen, and government officials themselves.

If we weren’t taxed in the manner that we life could get pretty annoying. Imagine if you had to pay a fee every time you pulled out of your driveway. Consider the frustration if every time you needed a the life saving service of a police officer you were presented with a bill shortly after, or every time you had to call for a fireman you had to pay a premium for fire retardant vs water. Without taxes, schools would be fully privatized and roads would all have tolls. Your taxes make these services part of our day to day minimum expectations. Without taxes from the people there is no way to provide even the most basic of services. Reliable public safety and the protection of our way of life is one of the unsung benefits of taxes .

This is why we pay taxes. Every person is responsible for paying a little, and in the end it creates enough revenue for the government to function, and for the services that the people require to be provided.

Here is a quick rundown of the types of services that taxes make possible:

  • Public schools
  • Police services
  • Fire departments
  • Military support and National Defense
  • Federal assistance programs
  • Roadways
  • Environmental services
  • Corrections
  • State parks
  • Federal housing
  • Medical services

Of course, some of these items get more funding than others. A rough quarter (that is a full 25%) of all income taxes go to supporting military efforts and national defense. This is easily the biggest portion of the tax budget. Coming in under that is the cost of education, which accounts for a little more than 20% of all tax revenue.

Few people argue that taxes are necessary, the real political hot button are who pays more, who pays less , how efficiently they are used and for what. As a tax and accounting firm we don’t pretend to know the answer to this, our role is to be experts in the latest rules and regulations to make sure you are not paying too much! It changes every year and is composed of about 74,000 pages!!

No one likes paying taxes, but once you breakdown where those tax dollars are going, many agree that taxes are a necessary, if unfortunate, aspect of our way of living. The best way to pay your taxes is to plan ahead and to be aware of your tax burden throughout the year. Working with a skilled tax accountant can help alleviate much of this burden. Contact MBS accountancy for more information about working with an accountant to handle your taxes.

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