Key benefits of hiring a professional tax service

The mere mention of taxes often inspires fear in the minds of taxpayers. Whether you are an individual or a small business owner, filing a tax return is something you simply cannot avoid. The old days when anyone could complete a simple statement are fast disappearing. This is especially true if you have a complicated return, multiple streams of income, or plan to take multiple deductions. Tax help for business owners is critical to making sure quarterly and year-end taxes are a must on file. Familiarizing yourself with the benefits of professional tax preparation will help you decide if it is the right option for you.

Initially, using a tax preparation service costs more than filing a return. However, professional accountants can also save you a lot of time and money in the future. Instead of spending hours going through tax minutiae and calculating numbers, you have the convenience of having someone else do it for you. Similarly, the best services only use Certified Public Accountants or Enrolled Agents, the most competent tax specialists available. This means that your tax return is guaranteed to be as accurate as possible. On the contrary, doing your own taxes opens the door for mistakes. A simple math error or a missed deduction can spoil your entire return or even get it audited.

When times are financially tough, every dollar counts. As such, spending money on a tax specialist may seem inconceivable, even if you see the benefit of doing so. However, you may be surprised to learn that the cost of hiring a professional may be tax deductible. The mileage spent driving to and from your agent, the postage to mail the tax forms to you, as well as the cost of the preparation itself, can be deducted if your expenses add up to 2 percent or more of your adjusted gross income. These types of deductions are considered various and should be reported on Schedule A of the IRS 1040 Tax Form. Make sure your accountant details your deductions if you want to take advantage of this tax exemption. Not only that, but professional accountants are generally aware of deductions that you may not be aware of, so they can increase your deductions and therefore lower your taxable income.

Audit support is one of the most important benefits of using a professional tax service. In addition to reducing your chances of being audited, having a registered CPA or agent in your corner can give you the support and tax experience you need to successfully pass an IRS audit, should one arise. When faced with an audit, it is critical to have someone you trust to help you through the process. Also, in the unlikely event that your tax professional makes a mistake, it can be easily resolved. On the contrary, acting alone can often result in costly litigation. Unfortunately, not all tax professionals are the same, so choosing the right person from the start makes all the difference. Additionally, the IRS has begun cracking down on many less-than-scrupulous tax preparation companies, so be sure to obtain references and verify credentials before entrusting someone with your most confidential information.

Ultimately, the decision of how to prepare your taxes is one that you must make based on your own needs and circumstances. However, understanding the benefits of working with a professional can make the decision much less complicated and even alleviate much of the apprehension you may have about facing the upcoming tax season.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top