9 Benefits of Hiring a Tax Professional
Whether you are an individual struggling to fill out your tax return, or maybe a small business owner drowning in papers every tax season, hiring a professional tax preparation service is something that will make your life a lot easier.
The benefits of hiring a tax professional include not only time savings and reduced stress, but financial benefits as well. An expert can take you or your business through all the issues related to paying taxes and may ultimately save you money.
Why Hire Professional Tax Services?
Filing tax returns, trying to navigate tax laws, and understanding tax deductions can be a daunting and frustrating task. Many people find that devoting several hours to filing taxes simply doesn't make sense and choose to save money and time by hiring a professional.
Taxes are something you don't have to face alone. These are just some of the benefits of getting help from a tax professional.
It can save you money. Many people don’t consider hiring professional services simply because of the cost. However, the reality is often just the opposite. If a tax professional can find deductions or tax credits that you may have missed or perhaps didn't know about, the savings can exceed the fee it costs to have them prepare your tax return.
It saves you time. According to the IRS, it typically takes around 13 hours to fill out a Form 1040 or 1040-SR. This is valuable time you could be spending with family, resting, or working.
Tax professionals give you peace of mind. Paid tax preparers can answer your questions and resolve any doubts you may have. Because they provide a personalized service, your questions can be answered quickly, and you won’t spend hours on hold like you might if you called the IRS.
Filing taxes is complicated. Tax professionals are up to date with all the latest changes to the tax code and know about the tax deductions you can take advantage of this year.
Making mistakes when filing taxes can be costly. Professionals can help you avoid the most common tax mistakes that lead to an IRS letter or audit, making sure your returns are filed without errors.
Professional tax preparers can help you all year round. Tax professionals aren't only useful during tax season. Tax professionals can also advise you year-round on how to make tax-saving decisions with proactive tax planning. For example, if your small business is located in Jacksonville, Florida, local tax experts can help you navigate the tax laws that are specific to Florida and make sure that you maximize any available credits.
Your previous returns can be reviewed retrospectively. Did you follow the tax code to the letter in previous years? Did you miss a potential tax credit? These are questions that tax professionals can investigate for you and amend if necessary.
The risk of an audit decreases. Correct tax filing is a good start to avoiding a tax audit. However, in the case that you are audited, professionals who offer IRS tax audit services can help you achieve the best possible outcome.
Nobody likes doing their own taxes. Hiring a professional leaves you free to enjoy the time you would have spent agonizing over taxes.
What to Do Before Hiring a Tax Professional
Though hiring a professional for the upcoming tax season will save you time and, potentially, money, you will need to gather the relevant documents in order for your tax preparer to fill in the forms accurately. Not only will having ordered paperwork streamline the process for your tax preparer, but it will also keep the fees to a minimum.
At your first appointment, be ready to present:
W-2 forms
1099 forms
Mortgage and bank statements
Receipts for any charitable contributions
Any other forms that might be relevant to your tax return (such as receipts for any business expenses that you want to claim as deductions)
How to Find the Right Tax Professional
Individuals searching for a professional tax preparer should follow these steps to find the tax professional who best fits their needs:
Check that the professional has a Preparer Tax Identification Number (PTIN).
Make sure that you understand all the fees involved so you aren't overcharged.
Ensure that your tax preparer offers e-file tax returns.
Make sure that your tax preparer will sign their name and provide their PTIN on your tax return.
Your tax professional must be able to respond to the IRS. Professionals that have a PTIN and are enrolled agents, CPAs, or attorneys can represent you when it comes to IRS audits, payments, and collection issues.
10 Questions to Ask a Tax Professional on First Contact
Before deciding which tax professional to choose, be prepared to ask questions and make sure they are the right fit for you. Possible questions to ask include:
Do you have an IRS-issued Preparer Tax Identification Number (PTIN)?
How do you keep up with the latest tax laws? Do you take professional education courses regularly?
Do you offer a free initial consultation?
Which staff member will prepare my tax return?
Do you offer IRS e-filing, and will my tax return be submitted to the IRS electronically?
How long will you keep my records?
When do you require payment?
When will I receive my finished tax return?
What support do you provide if I get audited?
Do you outsource your tax preparation?
Being prepared in your first appointment will help to ensure that you find a tax professional who is right for you, and who will help you all the way through the process.
Hire a Tax Professional for Peace of Mind, Extra Time, and Potential Savings on Your Tax Bill
Tax season is a time many people dread, but this can be avoided by hiring a tax professional who can take the burden off your shoulders. Being sure that you file your taxes correctly and are taking advantage of all the deductions available is not only valuable financially, but also emotionally.
Taking the decision to ask for help is an important one, but finding an expert who is a good fit for you is just as important. Once you’ve found the right person to help with your tax return, you’ll be able to face this tax season with confidence and full peace of mind.
