Filing your yearly tax return is not the only time you need the service of a professional tax preparer. If you are too busy or always run a tight schedule and you don’t have time to call the IRS office or an expert in interpreting the tax code. Listed below are the times you will need the service of a professional tax preparer after April 15 deadline.
When a taxpayer is being audited it is always advisable to get the service of a professional tax preparer if you don’t want your case to end in favor of the IRS. Peradventure if a taxpayer is audited, the IRS may decide if there is a need for adjustment in the tax return or not.
In the year 2016, the IRS reported that over 80% of the individual tax returns examined where recommended for changes.
A taxpayer may be required to pay an average bill to the IRS when it completes its audit; the bill can be up to $19,000 for a field audit and the sum of $6,600 for a mail audit.
A taxpayer needs to be focused and attentive as regards their tax returns. I also strongly advise you seek the help of a professional tax preparer when you are faced with challenging issues as regards your finance and tax.
There are quite a number of factors responsible for the change in a taxpayer financial status, which are Marriage, divorce, becoming self-employed, the birth of a child and many other factors of life, which always have an effect on a person’s tax conditions. It is best to attend to all the above-listed situations as they occur, which gives you space and time to avoid tax surprises. A professional tax preparer may help the taxpayer in addressing the financial situation to their advantage.
The IRS revealed that between 2014-2015 over 30million taxpayers filed a tax return with a due balance. With the help of a professional tax preparer, you can be assured of the best payment option which may most times include signing up for an installment agreement. In most cases, the taxpayer may be eligible for the offer in compromise with the IRS for an amount lower than the total tax due.
When the tax returns statements don't correlate with the statements on the IRS file. Then the IRS will likely reconcile with millions of tax returns without full tax details.
There are several reasons for tax returns with full details, which can sometimes be due to IRS negligence. Sometimes changes are made without them reflecting on the return. 2 out of 10 taxpayers are likely to face this particular challenge, this doesn’t exclude small business too. Some tax notice without full details can only be recognized by a professional tax preparer. The tax notice may look perfect and okay with you, but a good tax preparer will help you in detecting and fixing the errors in your tax notice. A tax preparer can be helpful in resolving cases involving underreported tax notice.
A taxpayer may need to employ the service of a tax preparer, so as to help in calculating the annual financial transactions, find new and expiring tax benefits, so as to reduce the taxpayers liability.
Calculating taxes can be very helpful because it helps the taxpayers to budget for their monthly or annual tax bills, which the taxpayer can pay in advance.
It can also help in financial decision making which may be whether to sell or keep a particular stock, how and when to make charity donations when to spend the spare funds in your savings account.
You need not wait till until few weeks or days to April 15 before you take actions concerning your tax return, take the bold step today.
Roland Zita, CPA