There’s too much financially at stake for you to risk making one or more mistakes on your federal income tax return. I know several savvy number crunchers who lost tens of thousands of dollars to save a CPA bill that ran less than $1,000. No matter how you look at it, this does not make sense.
What makes sense is hiring a certified financial planner to crunch the tax numbers for you.
Even if you have not established a comprehensive investment and retirement portfolio, a financial advisor who doubles as a tax preparer gives you peace of mind knowing the tax forms you send to the IRS accurately indicate your tax liability.
Why You Should Use a Professional Tax Preparer
If you are about to organize several piles of tax records to file out your tax return, consider hiring a licensed tax preparer to complete your taxes for you. Several advantages make it a no-brainer to get professional help when tax season rolls around.
Let’s reiterate the advantage of saving money. The IRS significantly penalizes taxpayers that make mistakes on their returns. Mistakes include omissions, incorrect calculations, and failing to submit the right tax forms. A tax preparer avoids the costly mistakes at a fee that is just a small percentage of what the IRS charges in fees and interest. Another advantage of deferring to a financial advisor during tax season is you save a considerable amount of time. The IRS reports the average tax return takes 20 hours to complete.
How does freeing up 20 hours to do much more pleasant things sound to you?
Filing a tax return might not be such a burden if the IRS created an easy-to-understand tax code. However, the federal tax code is highly complex and it changes every year to accommodate modifications made by the United States Congress. A professional tax preparer has an in-depth knowledge of the federal tax code, as well as stays on top of the rapid changes that apply it.
One of the most underrated benefits of hiring a tax preparer is after tax season, the tax preparer turns into a tax advisor. You receive tips throughout the year that lower your tax bill. A tax preparer also suggests strategies to maximize your income without paying more in federal income taxes. If the IRS orders an audit of previous tax returns, a tax preparer is ready to address the issues to ensure you remain in good standing.
If a Tax Preparer is Good Enough for Me…
As a financial advisor who has nearly 30 years of experience helping clients manage their personal finances, I have never thought about doing my taxes. The annual fees I pay my CPA are more than worth the costs of going through an IRS audit. Like me, when the time comes to file your federal tax return, you need to hire a specialist who earns a living understanding the seemingly countless number of tax forms issued by the IRS.
Before you hire a professional tax preparer, organize your tax and financial records, as well as the forms you need to file a federal tax return.