Important Tax Forms You Should Know About

Sometimes it seems that there are as many financial forms as there are stars in the sky. While that is a gross exaggeration, if you are running a business or make regular investments, there are hundreds of tax and financial forms you should know about. Finding out which are the most important financial forms for you could take a little bit of research, however. Below is some basic information about some of the financial forms that may have the most impact on your financial well-being.

What makes a financial form important is how it relates to you. If you have a business dealing with wagers and betting, you should definitely know about Form 730: Monthly Tax Return for Wagers. You must fill out this form if you operate a betting pool, a lottery, or prize giving contests. If you host an event for profit where you accept wagers on behalf of those who aren't present, the money you earn must be claimed and is subject to taxation.

Most people would not be interested in that form because it is an uncommon situation. More common forms are things like Form W-9: Request for Taxpayer Identification Number and Certification. This is a form businesses use often when they hire contractors or people who work on a commission basis. It differs from Form W-4 because it does not make allowances for withholding taxes.

If you are a student who has received financial aid or scholarship money there are a whole slew of forms associated with reporting that money. If you are an investor there is another batch of forms that is tailored to your business dealings. There are so many different forms and so many rules and quirks associated with taxes that one of the only ways you can be certain you are filling out all of the most important forms for finance is to hire a CPA.

Knowing about important financial forms is part of what Certified Public Accountants are trained for. Much of what a CPA learns are the ins and outs of the complicated tax code, and what forms should be used to report any monetary situation. If you have a large corporation, a small business, or many varied investments, going to a CPA is the best way to make sure you don't miss any forms, and that you are following the tax laws. For example, managing payroll for a few employees is easy, but when you start to add benefits and more employees it can become too much to handle on your own.

By letting a professional help you with your taxes, you can save yourself the worry of an IRS audit. If your CPA has filled out all the forms, dotted the I's, and crossed the T's, then you'll be prepared for whatever the IRS throws your way.