Property tax comes under state and municipal laws and guidelines. They keep on updating them through regulation, legislation, and municipal by-laws. It requires time and resources to stay updated about all the tax laws under each jurisdiction where you are operating. In case you miss on anything, it leads to non-compliance resulting in additional costs and penalties.
Hiring a third audit party is definitely a good move to save your time and efforts. It will make sure that you are complying with the local laws. Property tax consulting by P3 cost analysts and other such providers helps you manage your property tax bills as they have access to data and knowledge of all the tax legislation.
A third-party audit works closely with you and helps minimize risks by identifying areas of concern. Some reasons why you should hire a third-party audit company are listed below.
Avoid Common Mistakes
Many taxpayers commit the mistake of reporting their real estate property as personal property. This error can result in penalties or double taxation.
A seasoned audit consultant can help you save your money by preventing you from making this common mistake. A tax professional knows the classifications well, and they can advise on what is classified as real estate property in a particular jurisdiction.
Understand Complex Jurisdiction Tables, and Schedules
A property tax law is updated every year, and many times, the provision for one jurisdiction may be completely different from the other. This makes it necessary for you to keep yourself updated about the jurisdiction depreciation tables, terminologies, form numbers, schedules, etc. The authorities will also ask for calculations and figures.
Property tax consulting by P3 cost analysts and many other such providers will guide you to apply under the correct depreciation table. A property tax involves acquisition cost, improvement costs, etc., and is based on the category of your property and how you are using it.
For example, land can be treated as personal property, but it will not remain in the personal property category if you are in real estate. A third-party audit will help you guide you about the appropriate jurisdiction table.
Avoid Penalties and Overpayments
The only way you can avoid fines and interest is by complying with the tax laws and supplying the correct information. Also, you must ensure that you file your tax returns on time.
An audit consultant is well versed with the local laws helping you file returns within the deadline. It’s essential that you report on the correct form, signed and notarized, including all the necessary documents attached to it. They can save you from the stress of calculating your taxes by helping you out.
Availing Exemptions and Benefits
Exemptions and abatements help save you cost while filing the tax returns. Most taxpayers are not aware of these exemptions, which again depend upon the jurisdiction to jurisdiction. Your tax auditor will perform tax structuring, suggesting how you can carry out your business transactions in a tax-effective way.
In this way, they can help you make significant savings on tax. Capital investments are also entitled to abatements. Availing of any exemption is a one-time process, and if your business is found non-compliant, you will lose the chance of any exemption.
Also, you will attract a penalty that will only add up to your loss. Your tax consultant will help you identify the opportunities of tax redemptions and save money.
Avoid Property Tax Overpayments
You might be having some capitalized fixed assets that have no physical existence currently. These assets are ‘ghost’ assets. Your tax consultant will help you identify the assets which have depreciated and need not be included in your ledger.
A fixed ledger contains the details of your property, and if it has any ghost properties, it will be calculated automatically. Your tax consultant can save you considerable money by removing these ghost assets.
Help In Submissions and Appeals
If you are found non-compliant, you may be served a notice by the tax authorities. You might be called for hearings and proceedings. Your tax audit company can help you draft submission and minimize your fine. In case there are any loopholes, they can help you claim funds by drafting a proper appeal.
It is wise and advisable to be proactive in your tax filing and do it within the given timeframe. If you have any doubts about it, you can reach out to Property tax consulting.
Consulting your tax auditor will help you file your taxes in compliance with the local laws. By guiding you about tax-saving methods and allowing you to avail yourself redemptions, they can help save your hard-earned money from wasting.
