By Tom Andrews, CPA
Tax compliance can be a complex and time-consuming process for both yacht crewmembers and their accountants. Fortunately, there is a valuable tool that can streamline the entire process and enhance the collaboration between taxpayers and their CPAs: an IRS.gov account. By embracing the benefits of this online platform, yacht crewmembers can simplify their tax journey while providing their CPAs with the necessary tools and resources to effectively manage their tax affairs. Let’s explore why both taxpayers and CPAs should consider using an IRS.gov account and the positive impact it can have on their tax compliance process.
First and foremost, an IRS.gov account provides crewmembers with convenient access to a wide range of tax-related services and resources. By utilizing this secure online platform, taxpayers can easily file their tax returns, check their refund status, make payments, and update their personal information. These tools are valuable as many crewmembers travel during the year and might not have the opportunity to spend hours waiting for IRS customer service representatives assist them with questions or update addresses.
In addition to convenience, an IRS.gov account offers enhanced security measures to protect sensitive taxpayer information. As CPAs are responsible for handling and managing their clients’ financial data, the security of such information is paramount. The IRS has implemented robust security protocols within the platform, including two-factor authentication and encrypted communications, ensuring the confidentiality and integrity of taxpayer data.
One of the most significant advantages of using an IRS.gov account is the seamless exchange of tax information between yacht crewmembers and their CPAs. Through the platform, taxpayers can easily access and share their past tax returns, payment history, and other pertinent tax records. This centralized repository of information simplifies the process for CPAs, enabling them to quickly gather the necessary documents and gain a comprehensive understanding of their clients’ tax situations. By utilizing an IRS.gov account, yacht crewmembers can provide their CPAs with efficient access to their tax records, saving both parties time and effort during tax preparation and planning.
Every year we have clients looking to close on a new home only to have the process delayed while mortgage underwriters attempt to verify the taxpayer income. Since most foreign flagged vessels do not issue W-2’s crewmembers are often asked to provide IRS account transcripts, without an IRS account these transcripts can take weeks and sometimes months to obtain when a crewmember is traveling.
Finally, an IRS.gov account offers personalized communication and updates from the IRS. By opting in for email notifications, yacht crewmembers can stay informed about critical tax deadlines, changes in tax laws, and other important updates. CPAs can benefit from this feature as well, as they can proactively address any tax-related matters that may impact their clients. By utilizing an IRS.gov account, taxpayers and their CPAs can foster effective communication and collaboration, ensuring that everyone is on the same page throughout the tax compliance process.