10 Times When Only a Tax Professional Will Save You
The Limitations of DIY Tax Preparation and How They Can Get You Into Tax Trouble
The widespread availability of tax preparation software has made Do-It-Yourself tax prep easier than ever. These software packages are simple to use, with step-by-step instructions and built-in checklists that make mistakes less likely.
But mistakes do happen, and when they do, the IRS will be out to collect any back taxes you might owe plus penalties and interest.
Note, if you find yourself in tax trouble, or owe the IRS back taxes, we always recommend getting in touch with a Certified Tax Resolution Specialist to negotiate with the IRS on your behalf. If you’d like to schedule a no-cost confidential tax relief consultation, contact us here, or call 877-355-8010.
DIY tax prep software programs have their limitations. There are times when the DIY approach will not work, and professional tax preparation services are warranted. Here are 10 times when it pays to abandon your DIY ways and seek the help of a tax professional.
“I have foreign assets or investments in foreign banks.”
The IRS is cracking down on foreign assets. Holding them puts a target on your back. You cannot afford to take a chance.
“I lived and worked in multiple states.”
The laws governing earned income in multiple states are incredibly complicated, and most tax prep software cannot handle those intricacies.
“I had a major change in my personal life.”
Major life changes require major tax help, and that means hiring a pro. A marriage, divorce or the birth of a child will change your life – and complicate your tax situation.
“I made a mistake on a past return or already owe back taxes.”
A mistake on a previous return is reason enough to hire a pro. Taxpayers in such a situation could face a higher risk of an audit, and they will be happy to have a pro in their corner.
“I received a large inheritance.”
If you inherited real estate, stocks or other property, your taxes may be too complicated to tackle on your own. A pro can help you sort things out, so you do not pay more than you should.
“I won the lottery.”
Congratulations! You probably owe a large amount in taxes. If the odds smiled on you last year, you will need serious help with your taxes.
“I bought my first home.”
Buying a home entitles you to tax breaks, including some that are quite obscure. A professional can help you ferret out those deductions, possibly netting you a lower tax bill.
“I sold my home.”
The sale of a home is a complicated matter, one that requires professional help and guidance. From determining the true cost basis to getting credit for realtor fees and past improvements, a professional tax professional can help you navigate these tricky waters.
“I suffered the death of a spouse.”
The death of a spouse is a tragedy, one that will complicate your life and your taxes. If you suffered the death of a spouse, you have enough to deal with, so give yourself a break and hire a tax professional
“I started a business.”
Once your business is up and running, you may be able to do your taxes, but for year one; professional help is warranted. A professional tax preparer can help with everything from business structure to identifying unusual but valuable deductions.
There is no doubt that tax preparation has gotten a lot easier in recent years. Thanks to technology many taxpayers can now complete their own tax returns.
Even so, there are times when the DIY approach is not the best one. If you find yourself in an unusual tax situation, it is time to get professional help, and doing so could be the best approach.
Have years of unfiled returns?
If you have years of unfiled tax returns, definitely don’t use software and attempt to file on your own. Reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.
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Jeffrey Schneider, EA, CTRS, NTPI Fellow has the knowledge and expertise to help you reach a favorable outcome with the IRS. He is the head honcho at SFS Tax & Accounting as well as an Enrolled Agent, a Certified Tax Resolution Specialist, and Advanced Crypto Tax Expert.
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Author of the Now What? Help! series, Jeff defines and deconstructs IRS notices and clarifies the letters and actions the IRS will take to get what they want. He interprets the world of the IRS in a fashion that mixes attention to detail with humor to help you better understand and resolve your tax problems.
The books are available in paperback and eBook on Amazon.
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For more on SFS Tax & Accounting, visit: https://sfstaxacct.com/
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738 Colorado Avenue Stuart, FL 34994
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Phone: 772-337-1040
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