The mention of mother taxes often inspires fear in the minds of taxpayers. Whether you’re an individual or a small business owner, filing a tax return is something you simply can’t avoid. The old days when anyone could complete a simple statement are fading fast. This is especially true if she has a complicated return, multiple streams of income, or plans to take multiple deductions. Tax help for business owners is a critical need to ensure quarterly and year-end taxes are filed accurately. Familiarizing yourself with the benefits of professional tax preparation will help you decide if it is the best option for you.
Using a tax preparation service initially costs more than filing the return yourself. However, professional accountants can also save you a lot of time and money down the road. Instead of spending hours going through tax minutiae and crunching 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. Conversely, doing your own taxes opens the door for mistakes. A simple math error or missed deduction can mess up your entire return or even get you audited.
When times are financially tough, every dollar counts. As such, spending money on a tax specialist may seem inconceivable, even if he sees the benefit of doing so. However, you may be surprised to learn that the cost of hiring a professional can be tax deductible. Mileage spent driving to and from your agent, postage to mail 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 miscellaneous and must be reported on Schedule A of the IRS tax form 1040. Make sure your accountant itemizes your deductions if you want to take advantage of this tax break. Not only that, but accounting professionals usually know about deductions you might 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 CPA or enrolled agent on your side can give you the support and tax expertise you need to successfully pass an IRS audit, should one arise. When you are faced with an audit, it is essential to have someone you trust to help you through the process. Likewise, in the unlikely event that your tax professional makes a mistake, it can be easily resolved. Conversely, going it 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. Also, the IRS has begun cracking down on many less-scrupulous tax preparation companies, so be sure to get references and check credentials before trusting anyone with your most sensitive information.
Ultimately, the decision of how to prepare your taxes is one 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.