Tax Strategies & Credits

7 Signs You Need a Professional Tax Preparer 

by
Bob Mason
on
1/11/2017
7 Signs You Need a Professional Tax Preparer 

The new year has just begun, but people and organizations everywhere are already thinking about preparing their tax returns. Many of these taxpayers choose to prepare their own tax returns each year in order to reduce expenses. However, in some situations, it is better to trust a professional tax preparer with your return than to attempt to handle it on your own. Here are seven signs that you need to hire a professional to prepare your tax return this year.

  1. You have a full schedule.

Preparing your own tax return can take a considerable amount of time, especially if your tax return is complicated because of business ownership or other issues. If you already have a full schedule and a large number of other responsibilities, it may be in your best interest to let a professional take care of the return for you so that you can focus on other tasks.

  1. You are concerned about the idea of an audit.

Sometimes, audits happen at random. However, in many cases, the Internal Revenue Service chooses to audit a return because of certain "red flag" issues. A tax preparer can identify these issues in advance and help you deal with them so that your risk of audit is reduced. If an audit does occur, the tax preparer may even be able to deal with the IRS on your behalf.

  1. You have limited understanding of the tax code.

The tax code is complicated. Even if you are using tax preparation software, some of the questions you will need to answer can be confusing. If you have a limited understanding of the tax code, you may find that you spend a lot more time trying to complete your return. You may also be more likely to make a serious mistake. To avoid this problem, consider hiring a professional tax preparer instead.

  1. You have a complex tax return.

Some tax returns are much more complicated than others. If you own a business, for example, your tax situation will be much more complex than it would be if you were employed and did not need to file Schedule C. If your tax return is complicated, having an experienced tax preparer ensures that the return will be completed as accurately and efficiently as possible.

  1. Your life changed dramatically during the previous year.

Major life events can affect your tax return significantly. If you got married, got divorced or had a child during the previous year, you may need to consult a tax professional. Other situations that may warrant professional help include getting a new job, selling a home, buying a home or beginning college.

  1. You have made mistakes in the past.

If you have made serious mistakes on your tax return in the past, hiring a professional preparer is recommended. Not only can your preparer help you make sure that you don't make any mistakes in the future, but he or she can also help you amend any past tax returns that are inaccurate.

  1. You are interested in long-term planning.

A qualified tax preparer can analyze your return and help you find ways to minimize your tax liability in the future. If you have long-term financial goals, hiring a professional tax preparer can help you work toward them.

Keep in mind that not all tax preparers are the same, so it is important to find a preparer with an appropriate amount of training and experience.

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Bob Mason

Bob Mason

Bob Mason is the founder of Coast Financial Services Inc. servicing both the Santa Cruz, and San Jose areas. Bob Mason is a skilled financial professional who is fully equipped to assist any of your accounting needs. Founding his firm in Santa Cruz, Bob understands the importance of small businesses and how they form the backbone of the area. Coast Financial Services, Inc. has been dedicated to the growth and profitability of businesses in Santa Cruz for 17 years. To learn more about Bob Mason and the rest of his team, visit their website.

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