5 Reasons to Hire a Tax Preparer
Right about now you’re probably trying to gather necessary documents to get ready for tax season such as W2 forms, various 1099 forms and other business expenses. You might be thinking that once and for all you’re going to be in control of your finances and will file your taxes on your own. Let’s face it though, tax season can be frustrating and for many, anxiety inducing. If you have a complicated tax situation due to owning a small business or having a few side hustles, you’re taxes will likely be even more confusing. Misfiling or not filing by the deadline may also lead to fines from the IRS. The good news though is that you don’t have to go at it alone. Hiring a tax preparer can relieve much of the stress associated with filing your taxes. If you find yourself thinking, should I be looking for a tax consultant near me, here are 5 reasons to hire a tax preparer.
1. It Will Save You Time
Did you know that there are over 40,000 pages of federal rules and information when it comes to taxes? The statutes that Congress passed regarding taxes totals about 2,700 pages, totaling well over 1 million words. To put that in context, that’s longer than the King James Bible which has 788,280 words. That’s not all though. The IRS has additional statutes and regulations that implement the federal tax laws. According to the National Taxpayer Advocate, there are roughly 9,000 pages worth of IRS regulations, totalling approximately 4 million words. That doesn’t even include individual state tax rules either. It would probably be a safe bet to say the average American simply doesn’t have time to read through all these documents. That’s why hiring a tax preparer will save you time. Even if it might not be possible to know every detail, they know where to find the information that you need.
2. Tax Preparers Will Be Updated on All the New Tax Laws
This year in particular filing taxes may be more daunting than ever as this will be the tax season that many Americans will see how new tax cuts will affect them. In fact, the 2018 tax overhaul will have Americans dealing with the most significant tax changes that they’ve seen in over 30 years. Making mistakes with filing your taxes can even lead to triggering an IRS audit, which will lead to even more stress and confusion down the line. Part of a tax preparer’s job is to be knowledgeable of all new tax changes that have occurred. Taxes are already confusing and this year you’ll likely have to dedicate a large amount of time and energy trying to read through and understand the new tax changes. Hiring a tax preparer means you can work with someone who’s already researched all the new changes so you don’t have to.
3. You Could Owe Less in Taxes
The only thing worse than doing your taxes is finding out you owe a significant amount of money to the state or federal government. That’s where tax deductions and exemptions come in. Deductions will lower the amount of your income that you have to pay taxes on by lowering your taxable income. There are two main ways to do this, through standard deduction or itemized deductions. The IRS notes that it can generally be best to itemize deductions if the total itemized deductions are greater than the standard deduction. Sound complicated? Don’t worry, that’s were a tax preparer comes in. A tax preparer will be knowledgeable on all deductions or tax credits that you will qualify for. Often times, when doing your own tax returns, you might miss out on some of the tax credits you can be qualified for simply because you didn’t know. With a tax preparer, you can work with someone who makes a living by knowing all the tax credits that may be available to you. Hiring someone who is specifically working for you will likely be the best way to owe less in taxes.
4. You’ll Have Help in the Event of an Audit
Taxes are confusing, and if you make a mistake, you may find yourself getting a letter from the IRS. Filing your taxes yourself or through an online system does not guarantee that you’ll have someone represent you in the event of an audit. While audits are rare, they do happen, and having to stand in front of the IRS by yourself is certainly not something for the faint of heart. If it doesn’t come to an audit, there are also other things to be aware of such as a CP200 or CP3219a, which requires you to follow up with the IRS. If you ignore these letters, it can cause problems for you with the IRS, which you probably want to avoid. Having someone to explain these letters and help you through it will be a huge relief and significantly reduce your stress in an already stressful situation. If your tax preparer is also a CPA, they will be able to prepare you for the situation and represent you in front of the IRS if the need ever arises.
5. It Will Give You Peace of Mind
Benjamin Franklin had it right when he said that one of the only things you can be certain in life about is taxes. Just because they come around every year, doesn’t mean that you have to be caught unprepared – again. There are so many different aspects that go into filing taxes and concerns about filing them correctly. When you hire a tax preparer, you can rest easy knowing that a knowledgeable professional will take care of it for you. Additionally, a professional will be able to explain various categories, claims and exemptions that you might have normally skipped over. Knowing that you can call an individual who knows your specific case and not a stranger can give you peace of mind. Should you have any questions about the process, being able to easily reach out to someone will help you feel less overwhelmed.
With April right around the corner, you’ll want to get a jump on hiring a tax preparer. When you have the help of a professional, filing your taxes no longer has to be such a dreaded process. So whether you’re new to filing taxes or you have a side hustle or you simply aren’t sure how the new tax act will affect you, save time and money and get the most from your upcoming tax return with the help of a professional tax preparer. Remember, the sooner you find yourself a qualified tax preparer, the better your chances will be of getting your taxes filed by the April 15th deadline.