Helping your clients pursue tax strategies that maximize savings should be a priority for CPA firms seeking to increase client satisfaction and loyalty. Tax credits and deductions allow your clients to reduce tax liability when they conduct research, hire certain employees and make property investments.
Ensure your clients feel comfortable pursuing tax savings and get the most out of valuable tax incentives by following these four tips to help clients claim tax credits and deductions:
1. Offer Your Clients Audit Representation
CPA firms are often familiar with clients’ fear of being audited for tax credit claims. In some cases, clients are hesitant to pursue tax strategies because they would prefer to miss out on tax savings rather than be penalized by the IRS or state tax authorities.
However, tax credits and deductions significantly benefit your clients’ budgets and should not be overlooked due to fear of an audit. Your CPA firm may offer professional audit representation by partnering with an outsourced tax expert who provides this service. Assure your clients that if they have documentation to support their claims, an audit representative is able to defend their credits.2. Understand The Tax Credits And Deductions Available To Your Clients
In order to help your clients claim valuable tax credits and deductions, you should learn about their businesses and identify credits they may qualify for. Given the right supporting documentation, your clients may be eligible to capture the following benefits:
R&D Tax Credits
When your clients claim R&D tax credits, they receive a dollar-for-dollar reduction of tax liability for qualified research expenses. Your clients may be reimbursed for wages paid to researchers, supply purchasing and upkeep, and other research expenditures.
Employment Tax Credits
Companies that hire individuals who face barriers to employment may qualify for employment tax credits. Eligible employees include food stamp recipients, veterans, Temporary Assistance For Needy Families (TANF) recipients and individuals who live in empowerment zones.
Cost Segregation
Your clients may be eligible to gain savings through cost segregation studies that allocate the costs of their building components into various classes of property. Cost segregation allows your clients to shorten the depreciation period of their properties and increase cash flow.
3. Implement Professional Specialized Tax Software
The right tax software allows your CPA firm to streamline project management and reduce costs as you help clients claim tax credits. Partnering with an outsourced tax consultant company may give you access to proprietary software designed with your firm in mind.
As you search for tax software to expedite the services your CPA firm offers, look for the following features:
- Documents are highly secure.
- A customized portal allows you to follow the status of projects.
- Government and HR systems are integrated.
- Employee screening processes are included.
- You are able to find other supporting documentation.
4. Partner With Outsourced Tax Experts
A knowledgeable tax consulting partner helps you identify tax benefits for which your clients are qualified and guides you through the processes of submission, providing documentation and audit representation when needed.
If you have questions about how to gain more tax credits and deductions for your clients or maximize savings through other tax strategies, consult a tax expert. The tax experts at CTI have experience helping CPA firms like yours get the most out of tax incentives for clients.
Ready to discover other tax solutions that may benefit your clients? Learn how to capture location-based tax credits and deductions.
