Since Monday January 23, 2017 you were able to start filing your 2016 Income Taxes. Given the complicated regulations that are the US Tax Code, you might be better off going to a professional to get your taxes completed, rather than trying to navigate these waters on your own. In this article I will go over 4 Reasons To Hire A Tax Professional and why this would be beneficial to you as a taxpayer. With a lot of opportunities out there to self-prepare your taxes, this might seem like the economical thing to do, however, a computer program might not know everything about your history and tax scenario. Working face to face with a tax professional and preparer will allow them to ensure they are asking all the right questions to get a feel for just what you are looking at in terms of income taxes. In talking with a tax professional it might uncover items that may have a positive or negative effect on your tax liability. Before you get yourself in trouble with the IRS, you need to know the 4 Reasons To Hire A Tax Professional.
In a world where we are all in a rush to get things done as quickly as possible so we can move onto the next task, this can have a negative impact on your taxes. If you aren’t extremely careful with how you self-prepare your taxes there is a good chance you can make a mistake or omission. Mistakes are normally forgiven, but when that occurs on your taxes, you need to watch out. After filing your taxes you could receive a Tax Notice come in the mail a few months from now saying you underpaid your taxes and now you owe back taxes, penalties, and interest. Make the smart investment and work with a professional where on a standard return should be completed for around $100.
If there is one way you can sabotage your own income tax filing is to assume you have a simple tax situation that you can handle on your own. The only situation you can confidently complete taxes on your own would be if you only have W2 income, no children, and don’t itemize your deductions. If this is the case you can probably even use the 1040EZ form to file your taxes and be done in one page. However, if you have kids, itemized deductions, business expenses, or own your own business, then you should probably leave filing to the professionals.
It is always in most people’s best interest for them to try and receive te best possible return or to pay the least amount of taxes as possible. The problem with some people is that they get too greedy and try to overstep their bounds which can end up with them getting audited. If you work with a tax professional you can be comfortable that they will get what is best for you within the scope of the tax laws because ultimately if you get audited it is the preparer who signed your return that is responsible for satisfying the IRS.
In a world where a lot of people can hide behind a computer screen or a phone, knowing you can work with your tax preparer face to face to get your taxes done is a plus. You will know firsthand if you are with them and want to proceed. Once this is established your tax preparer can make a plan for you as you move forward to ensure all tax liabilities are handled as the occur rather than once a year. It is always good to go into the new year with a plan which is why a tax professional is so valuable.
As you can see by the 4 Reasons To Hire A Tax Professional, it is probably in your best interest not to take on something like this by yourself unless you have extensive knowledge of tax laws. Working with a professional can ensure the most security possible.