Or is it? These are the 3 main reasons people get in trouble with the IRS.
Best Price Tax Preparation
In the last three days, we acquired three new clients, for each of the three biggest reasons they got in trouble with the IRS. When I asked why they chose to have their taxes prepared by the tax preparer they used, the three main reasons they gave me were
- I wanted to pay the lowest income taxes
- I was looking for where I could get the biggest refund on my income taxes
- I wanted to get my taxes done for the best price
Well, all three got the best price on income tax preparation. All three paid the least amount of taxes. All three got the biggest tax refund. And all three are facing an IRS audit for their tax returns and all three are paying a whole lot more to hire me to get them out of trouble. Don’t think it will happen to you? Think again.
Hire a Professional Tax Preparer
Yes, you should hire a professional to prepare your tax return. One with the education, knowledge and experience to help guide you through your return, get you all the deductions you can legally take and pay the least amount of income taxes. But legally!
US Tax law is extremely complex. For most taxpayers, there’s no such thing as a simple return. If you own your own home, itemize your deductions, claim employee business expenses, have children, own your own business and more, you’re probably going to want professional help.
Choosing the Right Tax Preparer
Choosing the right tax preparer can often make all the difference. You should choose a tax preparer who is an expert in tax law. One with several years professional experience in tax matters and accounting – preferably a licensed CPA or enrolled agent eligible to practice before the IRS. One who works in an office that you can come back to next year and the year after that.
Ask how long they’ve been practicing and how long the office has been there. You don’t want to come back later to find that they have moved or are no longer in business. In all 3 troubled cases they were not there the next year.
Understand Your Tax Return Before Filing
You should read and understand your tax return before filing. Don’t just sign the form and spend your refund. Read the tax return. Understand the deductions. Question those items you don’t understand. Ultimately, you are responsible for the accuracy of the return. If the return is wrong, you’re the one that’s going to have to pay more. Not the tax preparer. Especially if he’s not around next year.
In summary, its not the best price you’re looking for. It’s the best preparer that you want. One that keeps you out of trouble with the IRS.