How Important is Good Tax Preparation?
Good tax preparation, knowing whether an item of income needs to be declared or not and how to declare it, or if it can be excluded. Whether an expense item should be taken as a deduction or if it can be taken as a credit. Knowing your specific tax situation and what tax credits you may be eligible for. Each of these can save you thousands in taxes. Bad tax preparation, failure to take to time to understand your tax situation, not knowing the rules and regulations can lead to examinations, audits, notices of deficiency and assessments of increased taxes, along with associated penalties and interest which can cost you thousands of dollars.
Should You prepare Your Own Taxes?
It Depends; Are you sure your taxes are done right?
The IRS and the tax preparation software industry have made it easier for individuals to prepare and file their own income tax returns than ever before. But self-preparation still isn’t for everyone. Online filing can handle only the simplest of tax returns. Consumer products, like Turbo Tax, can help make sure the forms are filled out correctly and avoid math errors, but you still need to have an understanding of taxes in order to answer the questions correctly. The cost of an incorrect answer can far exceed any cost savings from the Do-It-Yourself approach. It can make sense to use a tax professional to do your taxes if your tax return includes any of the following:
- investment transactions, such as securities or real estate
- rental income
- business income, either as a sole proprietor or from a business entity
It can also make sense if your situation doesn’t include any of the above, but you don’t enjoy working with numbers or don’t have the time to figure it all out.
Why Choose Priority Tax & Bookkeeping?
I’ve been doing complicated tax returns for more than 10 years. As an enrolled agent, I am licensed by the IRS to practice before the IRS. This license allows me to prepare your taxes, regardless of which state, or U.S. territory you live in. My knowledge, reputation, and integrity are what set me apart from many tax preparers.
So, whether your tax situation is simple or complicated, I have the knowledge and experience you need to get your taxes done right. If you are one of the almost half of all tax filers who use a tax professional to prepare and file their taxes, then I invite you to consider using me the next time you need to do so.