Tax season can be a stressful time, especially if you’re trying to manage the complexities of taxes on your own. It might be tempting to save money and file your taxes yourself but that could prove to be more costly in the long run.
Hiring a professional tax preparer can help you get the best outcome when it comes to filing taxes. A professional tax preparer helps you understand your taxes and they can provide valuable guidance in filing them correctly. But what are the benefits of hiring a professional tax preparer?
What Does a Tax Professional Do?
A tax professional is a qualified and experienced accountant who knows the IRS tax code and regulations. They can help you with all aspects of tax preparation, from filing paperwork to filing an appeal if you feel you have been wronged by the IRS.
They can also assist in the identification of any deductions or credits that may have been missed, helping to reduce your tax burden. Additionally, they can provide audit assistance and guidance in the event of an audit by the IRS.
The Importance Of Hiring a Professional Tax Preparer
Filing your taxes can be incredibly time-consuming, especially if you do not have experience with the IRS tax code. Also, there is the potential for costly mistakes that could result in penalties or additional taxes. A tax professional can ensure that everything is filed correctly and on time, helping to prevent any unwanted surprises from the IRS while you focus on growing your business.
Make sure you find a tax preparer who boasts a good reputation and is qualified to do the job.
Pros Of Professional Tax Preparers
There are tons of pros to hiring a professional tax preparer, and here are some of them:
1. Filing Your Taxes Can Be Incredibly Time-Consuming
In 2021, the IRS estimated taxpayers spend 13 hours preparing their tax returns. This excludes any additional time needed to research deductions and credits, or review the filing for accuracy. Naturally, you can easily surpass this amount of time when filing your taxes on your own. Professional tax preparers can help you save a lot of time, allowing you to spend more time focusing on other important aspects of your life.
2. Tax Preparation Fees Can Be Deductible
Tax preparation fees are a deductible expense, meaning you can reduce your taxable income by deducting the cost of hiring a tax professional on your yearly taxes using Form 1040.
Hence, it is a great option for taxpayers that are already paying high taxes and have the ability to deduct the cost of professional tax preparation from their gross income.
3. Difficulty
The US tax code is incredibly complex, and it can be difficult to understand all the rules and regulations especially when they are ever-changing. The Federal tax code has been amended over 4,400 times since 2001 and continues to evolve. Therefore, the average taxpayer may not have the knowledge and experience to properly file taxes.
Professional tax preparers are well-versed in the latest tax laws and can help you navigate the complexities of filing taxes which is one of the many great benefits of hiring a tax professional.
4. Find Deductions or Credits That May Have Been Otherwise Missed
Tax laws are constantly changing, and it can be hard to keep up with the latest changes. Plus, notorious tax software such as TurboTax can miss deductions or credits that you may otherwise qualify for.
Professional tax preparers have the knowledge and experience to identify potential deductions and credits that you may have overlooked, helping to reduce your taxable income.
5. Audit Assistance
If your tax return is selected for an audit by the IRS, having a professional tax preparer on your side can help make the process less stressful. They can provide guidance and advice on how to best handle the audit, as well as prepare any necessary documents or information requested by the IRS.
6. Avoid Mistakes
The IRS views filing taxes as a legal contract between you and the government, and any mistakes can result in penalties and additional taxes. Professional tax preparers have years of experience and innovative technology to double-check your return for accuracy, ensuring that you don’t miss any deductions or credits.
7. Convenience
Filing your taxes can be a hassle and often involves gathering a lot of information from several sources. Professional tax preparers can easily access all the necessary documents, including W-2s, 1099s, and other investment statements. This saves you time and energy from having to track down all the necessary documents for filing your taxes.
However, we at Williamson Tax & Bookkeeping take it one step further. Once you have uploaded the necessary tax documents to our client portal, not only will we store this information for future use, but also identify the need for additional documents to ensure tax compliance.
Pro-Active Financial Insight
Hiring a professional tax preparer can be the best way to ensure that your taxes are done right and that you are taking full advantage of all the benefits available. Professional tax preparers have years of experience and can provide insights on how to save on taxes in the future. They can also help with filing back taxes, estate planning, and other financial services. In the end, hiring a professional tax preparer can save you time and money, allowing you to focus on other aspects of your life.
Williamson Tax and Bookkeeping is committed to connecting our clients with top-tier service providers in any industry. From legal experts to tradesmen, we ensure your business has access to the most reliable professionals available – so you can trust that all aspects of your venture are expertly taken care of.
Ready to get started? Get in touch with us today. With the help of our innovative solutions, you can be sure that you’re getting the peace of mind that comes with filing taxes correctly.
