Tax Relief Solutions: Consult with a Tax Relief Expert before 2023 Tax Season

Tax Resolution

The IRS has several policies to help taxpayers and businesses lower their tax burdens and solve tax-related issues. However, identifying the laws and changes applicable to you may be challenging.

A tax relief expert can help you navigate these policies to avoid costly mistakes. By consulting them before the 2023 tax season, you will maximize deductions.

Ways a Tax Relief Expert Can Assist

The high inflation experienced in 2022 influenced the IRS to change tax brackets for joint and single filers. This means that you will likely pay a lower or the same amount of tax even if your income increases slightly. A tax relief expert can help you determine the amount you owe based on the new tax brackets. Further, they will calculate the credit you qualify for to lower your tax burden.

Each state has different laws on inheritance and estate tax. For example, Texas does not charge inheritance tax, but you will incur federal estate taxes. However, you will only have this obligation if the inherited property exceeds a particular value.

Tax relief experts understand estate and inheritance tax laws. With their help, you can determine if you qualify for an exemption and present the needed documents.

Other ways an expert can assist before the 2023 tax season are:

  • Identifying itemized tax deductions you qualify for
  • Filing a tax appeal
  • Disputing a tax refund
  • Filing back taxes
  • Filing your 2022 taxes

If you owe the IRS, you need to repay to avoid penalties and fines. Consulting a tax relief expert allows you to verify if the amount listed in your notice is correct. The professional can also help you apply for an installment program if you cannot repay the debt in one payment.

Consulting an expert on tax debt will ultimately lower the risk of wage garnishment and liens. Besides, you may stop the IRS from seizing your assets.

How to Find a Good Tax Relief Expert

Tax consultants have varying qualifications and specialties. It is crucial to research when looking for a professional before the 2023 tax season. This way, you can get value for your money and avoid common tax mistakes.

One way to find a good tax relief expert in your area is by asking for referrals. These can come from family, friends, and local social media groups.  When you consult someone who has helped a loved one before, you can feel confident with their guidance.

Other tips for finding a good tax relief expert are:

  • Read online reviews
  • Ensure the tax resolution firm has a proven track record
  • Look for a CPA with enough tax education
  • Verify certifications

Proper communication is vital when dealing with a tax resolution expert. When looking for someone to consult before the 2023 tax season, ensure they have reliable written and verbal communication. The expert should also explain the current tax laws in a way you can understand.

Tax Relief Services You Can Get At FinishLine Tax Solutions

FinishLine Tax Solutions specializes in national tax relief and resolution. We have a team of CPAs and attorneys who can help you navigate different policies and repay taxes. Some of the offered services are:

Another service offered by FinishLine Tax Solutions is business tax preparation. Our experts can also help you apply for a Fast Track Settlement (FTS). This program speeds up tax dispute resolution using alternative methods.

Contact FinishLine Tax Solutions to Talk to an Expert

Navigating the 2023 tax season does not have to be complicated and frustrating. FinishLine Tax Solutions offers the resources and guidance required to understand tax laws. Consulting us allows you to maximize deductions and evade penalties. Contact us now for help with your tax situation.

IRS issued an alert to tax payer to adjust 2023 withholding

IRS starts accepting 2022 taxes starting from today Jan 23, 2023. At the same time, IRS is reminding tax payers to revisit their withholding from their paycheck towards 2023 taxes. If you are not withholding enough taxes, you are at the risk of paying penalties when you file 2023 taxes. If you are withholding more than what your obligation is, you are effectively giving the government an interest-free loan.

There are resources for you to determine the close to the right amount of taxes you will owe to the IRS.

Tax Withholding Estimator, this tool calculates the taxes owed based on the tax codes for 2023 and help taxpayers determine if they have to make any adjustments to their withholding in order to avoid owing taxes and potentially end up paying penalties for insufficient withholding when they file taxes the following year.

Back Taxes: Why You should Seek Help From Tax Resolution Experts

Dealing with taxes is stressful for many people. Even if you are diligent and organized, you may find yourself owing back taxes to the IRS. You may not know the best way to deal with owing money to the IRS. Fortunately, there is help available. 

If you have outstanding back taxes, it may help to work with a tax resolution expert. A tax resolution expert can provide professional advice and assistance. They help individuals and businesses resolve their tax debt on time and cost-effectively. 

With their expertise, a tax resolution expert can help you get your finances back on track. They can also save you money in the long run. Here are a few reasons why you should get help from tax resolution experts to resolve back taxes.

Experienced Guidance

Tax resolution experts can provide invaluable guidance and advice. Thus, they can help you make the best decisions for resolving your back taxes. They will also take time to assess your unique situation. Doing so allows the experts to provide you with a customized plan to get the best possible outcome.

Tax resolution experts have a wealth of knowledge on tax law. Given their experience, they can help you understand your tax situation. You will be able to better comprehend why you owe taxes and your options for resolving your back taxes.

Negotiation Skills

Tax resolution experts have had years of experience negotiating with tax agencies. They know the best strategies to negotiate favorable terms with the tax agency. 

These strong negotiation skills can be a major benefit when resolving back tax debts. Tax resolution experts handle negotiations to create a manageable payment plan for you.

In addition, the experts can help negotiate a settlement with the tax agency. Doing so can result in a reduced amount of taxes owed. 

Cost Savings

A tax resolution expert can help you utilize the right strategies to minimize your tax debt. In doing so, they help save you money. 

Tax resolution experts can also help you set up a payment plan that makes back taxes more manageable. Doing so can help taxpayers avoid additional penalties and interest.

Filing taxes can get complicated, and you might make costly mistakes. When you work with a tax resolution expert, they can help you avoid making mistakes. Thus, they can help save you time, money, and stress. The experts can also ensure you get the best possible deal when resolving your back taxes.

Reduced Stress

Dealing with back taxes can be stressful and overwhelming. A tax resolution expert can help you relieve some of that stress. They can take the burden off your shoulders and deal with the paperwork and negotiations. In doing so, they allow you to focus on other important issues. 

Working with tax resolution experts can also afford you peace of mind. You can rest easy knowing that your back taxes are being handled correctly. Experts will work to ensure that you get a resolution that is in your best interests. 

Save Your Credit Score

Your credit score measures how trustworthy you are in paying back debt. It’s important because it affects what types of loans you can get. It also impacts how much you’ll pay for them.

Owing money in the form of back taxes can hurt your credit score. The unresolved debt will reduce your credit score. A lower credit score may make it difficult for you to get a loan. Experts can help you with timely tax resolution, saving your credit score. 

Reach Out to the Tax Resolution Experts at FinishLine Tax Solutions Today

Working with a tax resolution expert to resolve back taxes is a wise decision. They have the expertise to help you resolve your back taxes effectively.

At FinishLine Tax Solutions, our tax resolution experts are ready to help. We can provide you with the guidance you need to resolve your tax issue. Don’t wait any longer. Contact us today to get the help you need.

Tax Evasion: What are the Consequences?

Tax Evasion, Fraud and the Statute of Limitations

The IRS necessitates that taxpayers provide accurate information about their incomes. It also requires them to submit correct financial documents and use the right social security number when filing returns.

Tax evasion refers to when you use illegal methods to avoid paying taxes. It also includes falsifying documents and failing to reveal some income so you can pay a lower amount.

Since tax evasion is a criminal offense, you may face severe consequences. Here we help you identify what happens if you commit this crime. We will also discuss some tips on avoiding the repercussions.

Tax Evasion Penalties

If you committed tax evasion, the IRS might impose a penalty of up to $250,000. This consequence may occur even if the government does not formally charge you.

The IRS treats failure to file your returns as tax evasion. This mistake attracts a fine ten times more than the one imposed for failure to pay.

The best way to avoid tax evasion penalties associated with failure to file is to submit your returns within 60 days after the deadline. This measure is critical even if you cannot clear the entire amount you owe.

Interests

If the IRS discovers that you did not remit some taxes and failed to include the amount in your returns, they will charge interest.

The IRS changes the rates each quarter. Often, it calculates the underpayment rate by adding 3% to the federal short-term rate. It then imposes interests from the first day after the filing deadline.

Criminal Charges

Evading taxes is a serious crime that can lead to prosecution in a federal court. If the judge finds you guilty, you may go to jail for up to 5 years. You might also have to pay a fine of up to $100,000.

Tax Liens

Another common consequence of tax evasion is a lien. This term refers to when the federal government imposes a legal claim on your property.

The IRS will send a Notice of Federal Lien before seizing your assets. They then put this information in public records to notify creditors. This issue can prevent you from using your property as security when obtaining loans.

When the IRS files a tax lien, they will only lift it when you pay the total amount you owe. This will include penalties, recording fees, and interests.

Still, they may release the lien under exceptional circumstances. An example is when you had a good reason for failing to submit the correct tax information.

Tax Levy

The IRS can impose tax levies on your financial assets due to evasion. Some resources you may lose are:

  • Retirement benefits
  • Social security payments
  • Salary and wages

The IRS may impose a levy release on other assets such as houses and cars. They will then sell the properties to recover the amount you owe.

How to Avoid the Consequences of Tax Evasion

The consequences of evading taxes can significantly affect your finances. You may also lose freedom and incur a lot of expenses.

Avoid these issues by paying all the amount you owe. If you aren't sure how much to remit, get tax resolution and preparation services.

Specialists can help you calculate the due amount and file back taxes. Such measures may prevent the IRS from charging you with tax evasion in case of an audit.

Other ways a resolution expert can help you avoid tax evasion consequences are:

Avoid Tax Evasion Consequences With FinishLine Tax Solutions

Consulting tax attorneys or CPAs can make it easy to avoid tax evasion consequences.

At FinishLine Tax solutions, we have experts that deal with tax evasion consequences. These will file your returns to ensure you submit the correct information. They can also offer legal guidance when the IRS sends a notice or seizes your property. Contact us now for a consultation.

For Texas Tax Payers: Tax Resolution Options If You Owe $10K or More to the IRS

Tax Resolution

Owing the IRS means more penalties and fines if you do not come up with a payment plan. You may also lose control of your assets if the government seizes them or impose a tax lien. If you have a debt of more than $10k, you may wonder how to repay it without straining your finances.

Read on to discover several options you can explore and their eligibility criteria. We will also cover each tax relief option's terms and suitability for various conditions.

Installment Payment Plan

One way to deal with tax debt is by setting up an installment agreement plan. This way, you can pay a specified amount for a given period and avoid accumulating penalties.

Apply for an installment plan online and pay a setup fee of $31. Alternatively, submit your application physically or by mail for a $107 charge.

Once the IRS receives and reviews your application, you can agree on a reasonable repayment plan. A short-term installment program is suitable if your total debt is less than $100k. On the other hand, a long-term agreement is ideal for debt that is not more than $50k.

The eligibility criteria for installment payment plans will depend on specific programs. Still, you must meet some basic requirements such as:

  • You filed all past returns
  • You cannot pay the total amount once
  • You do not have a current bankruptcy filing

Applying for an installment agreement plan will allow you to stop IRS debt collection measures. Further, you can qualify for other forms of credit like mortgages.

An Offer in Compromise (OIC)

If you cannot pay your entire tax liability due to severe financial problems, you may qualify for an offer in compromise. This program allows you to settle the debt for an amount lower than the actual value.

Submit an OIC application if you filed all past returns and submitted the estimated payments. You can also request consideration if you have a valid extension for the current financial year returns.

When the IRS receives your OIC application, they will review it and evaluate various factors. Such include your ability to pay and asset equity. They will also verify your income and revise your expenditure for a given period.

Before the IRS approves an offer in compromise, you will submit an initial payment in a lump sum. This is often 20% of the total amount you owe. If the IRS accepts your offer, they will send a confirmation letter. The document will include guidelines on clearing the balance in five or four installments.

Filing a Currently not Collectible Status

If you cannot cover living expenses and pay a tax debt, you may file a currently not collectible status. This program allows taxpayers to stop the IRS from using debt collection measures. Such may include wage garnishment, seizing assets, or freezing accounts.

When applying for this tax debt relief program, the IRS will require information about your expenditure and income. They will also need you to fill out a Collection Information Statement.

Filing a currently not collectible status is only suitable if you are in a severe financial crisis. This is because the program only delays the IRS from collecting what you owe. Still, the penalties and fines will accumulate until you can pay fully or apply for a different debt relief plan.

How to Identify the Most Suitable Tax Resolution Option

Identifying the best tax resolution plan can be tricky due to several options. Consulting an expert will help you evaluate your choices and eligibility for each program. Further, it ensures you organize your documents and file past returns before applying.

Get Tax Resolution Services in Texas

Seeking professional tax resolution services will help you determine how to deal with debt. Moreover, it protects your finances and allows you to avoid significant penalties.

At FinishLine Tax Solutions, we help Texas taxpayers that owe the IRS set up payment plans. Our professionals will ensure you pick a relief program suitable for the debt amount and your financial situation. Call us now if you owe the IRS $10k or more.

Dealing With Tax Debt: How to Set Things Right With the IRS

Dealing With Tax Debt: How to Set Things Right With the IRS

Remitting all the taxes you owe can be challenging, especially when facing financial problems. If you owe the IRS, it is vital to act promptly to avoid penalties and significant debt. This step can also prevent tax liens and stop the IRS from using harsh debt collection measures like seizing your assets.

Are you wondering about the best ways to deal with tax debt and protect your finances? Read on for tips on setting things right with the IRS and the benefits of working with a professional if you have delinquent taxes.

1. Ask for a Deadline Extension

Sometimes, you may fail to remit taxes due to delays. For example, you might be waiting for an investment to mature and use the funds to pay what you owe.

If you will likely get the funds to clear tax debt soon, it is advisable to ask for a deadline extension. While the IRS will not charge any fees for the process, they will impose a 0.5% monthly penalty on balance.

Requesting a short deadline extension will help you avoid paying fees associated with other tax relief programs. Besides, it gives you more time to get your finances in order and repay the total amount.

2. Apply for Installment Payment

If you cannot pay the taxes you owe in full, you should apply for debt relief. The IRS provides an installment agreement program to help taxpayers pay the amount they owe over an extended period.

Still, you must meet the eligibility criteria, including filing back taxes. Besides, your debt should be less than $50,000 but more than $10,00, including fines and penalties.

When the IRS accepts your application, they will require you to send a given amount each month for an agreed period. For example, if you choose a short-term installment plan, you will clear the debt within 120 days. On the other hand, the IRS will require you to pay delinquent taxes within 72 months with a long-term plan.

Enrolling in an IRS installment agreement program will help you avoid accruing penalties and fines. Further, you get more time to organize your finances and pay the debt without worrying about collection measures.

3. Do Not Ignore the Matter

While you may not be in a financial position to pay taxes, ignoring the issue will only worsen it. File your returns on time to avoid penalties associated with failing to submit your forms. Further, determine the most suitable repayment program and send your application within the deadline provided by the IRS.

If the IRS sends a notice or contacts you regarding tax debt, you should respond promptly. This measure will help you set things right and avoid consequences like:

  • Property seizure
  • Ruined creditworthiness
  • Imprisonment
  • Bank levies
  • Wage garnishment

4. Contact a Tax Resolution Expert

Dealing with tax debt may be confusing without professional help. Set things right with the IRS by consulting a resolution expert near you. These will assess your situation and determine the best way to deal with accrued debt. Besides, they can identify the most suitable tax debt relief program and help you apply.

Another way a tax resolution professional may assist is by filing back taxes and determining the total amount you owe. They will then develop a tax relief plan and meet with IRS officials on your behalf.

If the IRS seized assets and imposed a bank or property lien, you cannot use the funds to finance debt. A tax resolution professional will help you negotiate a lien release. Further, they will ensure you only apply for a debt relief program that will not cause more financial challenges.

Contact FinishLine Tax Solutions to Set Things Right With IRS

Setting things right with the IRS can protect your reputation and lessen financial problems. At FinishLine Tax solutions, we will help you deal with debt using an ideal repayment plan. Our professionals can also determine the debt relief plan you qualify for and present the required forms. Contact us now to lower the effects of unpaid taxes.

5 Top reasons Why IRS Will Audit You

5 TOP REASONS WHY IRS WILL AUDIT YOU - FLTS

The IRS conducts tax audits to review the details provided by taxpayers. This procedure involves revising your accounts and financial documents to verify that you provided the correct information. The IRS may also send a representative to your business for a face-to-face examination.

Since an IRS audit can lead to business closure and penalties, you should avoid it. Here, we discuss five main reasons the IRS may request this procedure. We will also cover how professional tax preparation and legal representation can help you deal with audits.

1. Incorrect Data

Providing incorrect figures is a significant reason why the IRS audits taxpayers. Such an issue may occur when you truncate decimals leading to calculation differences. It may also happen when you enter a number wrongly or miss some figures, especially zeros.

Another data issue that may lead to an IRS audit is providing the wrong social security number. This mistake often occurs when transferring figures from other documents.

Filing your returns online can avoid data mistakes and IRS audits. This method allows you to upload some information from your W2 forms. Hence, you can easily avoid typing and calculation errors.

2. Many Charitable Donations

Charitable donations qualify you for discounts on the taxes you owe. The IRS will counter-check your forms to determine eligibility if you claim such deductions. They may then request an audit if your income and the donations made in a particular duration do not match.

Avoid IRS audits related to charitable donations by providing the correct information. Further, ensure you have all the documents to prove transactions before claiming deductions.

3. Unreported Income

It may be tempting to eliminate some income when filing taxes. Unfortunately, such an issue will lead to an audit since the IRS receives income reports from your employers.

Before filing federal and state taxes, calculate the total amount earned from various sources. These include:

  • Self-employment
  • Alimony
  • Employment bonuses

If you are a business owner, your revenue may differ annually based on performance. Always confirm the income difference with the previous years to avoid raising suspicion and prevent unnecessary IRS audits.

4. Significant Business Expenses

Reporting significant business expenses is another reason the IRS may audit you. For instance, if you indicate that you spent more than three-quarters of your earnings on operation costs, the IRS may need to confirm this information.

Track business expenses and transactions to ensure you have accurate figures when filing taxes. Besides, confirm all provided details before submitting your return forms. These measures will help you avoid costly mistakes and prevent business closure during an audit.

5. Including a Home Office Deduction

If you use some parts of your home exclusively for business purposes, you may qualify for a home office deduction. However, you may not be eligible if you do not work from home often and use the rooms for other activities.

Since some taxpayers may claim home office deductions to reduce the tax owed, the IRS often flags such cases. As a result, they may audit your records to determine if you have business premises. This step also allows them to assess if the measurements you provided for your working spaces are credible and quality for a deduction.

How Legal Representation Can Help With an IRS Audit

Dealing with an IRS audit can be tricky without professional help. Getting legal audit representation allows you to avoid the stress associated with the process. An expert will help you prepare all the documents the IRS needs to verify your tax information.

 More ways the specialist may assist are:

  • Communicating with the IRS
  • Representing you during meetings
  • Filing for an audit reconsideration

Contact FinishLine Tax Solutions for Audit Representation

Dealing with an IRS tax audit can be confusing, mainly if the issues stem from an error. At FinishLine Tax Solutions, we will represent you during this process. Our professionals will also offer legal guidance and recommend ways to avoid an audit in the future. Call us today for audit representation.

Top 5 Best IRS Tax Relief Programs You Need to Know About for 2021

Top 5 Best IRS Tax Relief Programs You Need to Know About for 2021 - FLTS

Have you finished preparing your tax returns and found that you still owe some taxes that you didn’t know about? No need to panic.

It isn’t uncommon to find that you have some outstanding taxes when you prepare your tax returns. Luckily, the IRS offers several tax relief options to assist taxpayers to meet their obligations in a way that doesn’t cripple their financial health. Instead of ignoring your tax bill, take advantage of these legal tax relief programs to gain some reprieve and pay with a plan that suits your financial ability. 

Installment Agreements

Installment Agreements are the most common tax relief method for taxpayers who cannot clear their debt in full. It is available to taxpayers whose total tax liability (tax, interest and penalty) does not exceed $50,000. 

The IRS can allow you to repay the outstanding taxes in small installments for a maximum of 72 months. Note, however, that any interests and penalties will continue to accumulate on the outstanding debt, therefore you should try to shorten the repayment period

Innocent Spouse Relief

Through Innocent Spouse Relief, the IRS allows innocent spouses to avoid tax, interest and penalties that arise from a current or former spouse’s tax delinquency (underreporting, fraud, or nonpayment). 

Innocent Spouse Relief can only be requested when filing individual or self-employment tax returns. However, there are tax liabilities that are ineligible for cancellation under this program, such as business taxes, trust fund recovery penalties, Individual Shared Responsibility payments, and Household Employment taxes.

Offer in Compromise (OIC)

The Offer in Compromise is a tax relief option where a taxpayer pays less than the amount that they owe. Usually, the IRS will accept an Offer In Compromise when they assess the applicant’s tax liability and their present and future (potential) income earning capacity.  

To qualify for OIC, you should make the application to the IRS explaining their circumstances and give them your best offer to settle the debt. The IRS only accepts about 25 of all applications, which is why it is critical to use a qualified tax relief professional when making your application. 

If you succeed, you should pay your offer amount in five instalments or less. You may be able to appeal the decision if your OIC application is rejected. 

Advance Child Tax Credit (ACTC)

This is a tax relief program that the IRS offers to families. Many families will receive Advance Child Tax Credit payments up to 50 percent of the estimated ACTC amount (according to their 2019/2020 tax returns). 

Once the IRS processes your 2020 returns, you will receive 50 percent of this credit and from July to December 2021. The remaining half will be paid once your file your 2021 returns. You can learn more about this tax relief program by clicking here.

ACTC payments from the IRS will be paid by direct deposits to make the money easily accessible to the beneficiaries. You should ensure that you provide your correct banking information. Otherwise, the IRS will send checks in the mail beginning July 15 and every 15th of the month after that. 

The Coronavirus Economic Impact Payments

The IRS is also sending out the third round of Economic Impact Payment to the eligible individuals. Some people have already received their payments, but if you haven’t, it doesn’t mean you won’t get it. 

Additionally, the IRS is offering a 2020 Recovery Rebate Credit for those who didn’t get their first or second Economic Impact Payment or those who got less than the full amount. Those who are eligible to receive the payment but don’t usually fill tax returns can use the Non-Filer Sign-Up tool to register. 

Get Help for All Your Tax Concerns

Do you need help filing your 2020 tax returns? Contact our professionals at Finishline Tax Solutions for tailored solutions according to your needs. 

Have an outstanding tax liability? Contact us and let’s help to determine the tax relief program that works best for your needs. 

4 Helpful Small Business Tax Preparation Tips

4 HELPFUL SMALL BUSINESS TAX PREPARATION TIPS

Taxes are complex. Tax laws are constantly changing. Keeping on top of these rules can seem like an uphill struggle. Small business owners face numerous challenges while preparing and filing taxes. They have limited resources and have to juggle multiple tasks.

Many last-minute tax filers scramble to make the deadline. They make mistakes and end up earning the wrath of the IRS.

They say preparation is half the battle. Tax preparation does not have to be time confusing or complex. Start preparing your taxes early to avoid last-minute confusion and ensuing chaos. Break down large tasks into bite-sized tasks. Carry out a task every day.

Here are some tips to help you prepare your taxes effectively.

1. Get Organized

Open a savings account specifically for taxes. You can use account funds to meet your tax obligations as a business owner. Start making estimated quarterly tax payments, or you may be subject to penalties. Keep your business and personal accounts separate.

Effectively track business expenses. Get sufficient documentation for them (for example, travel expense vouchers for travels that occurred during the financial year). Keep personal, and business expenses separate. To reduce paperwork, digitize receipts.

2. Hire a Professional

Preparing taxes can feel like an insurmountable task. You need to check transactions appearing in your books and verify and validate them. This is a time-consuming task. As a business owner, you have better things to do than maintaining your financial records.

If you have too much on your plate, consider hiring a professional such as a CPA or tax attorney. These professionals keep on top of tax rules and regulations. Your CPA will prepare your taxes, help you identify ways to minimize your tax liability, and ensure tax compliance.

3. Leverage Technology

If you rely on traditional paper-based methods, you will end up getting bogged down by paperwork. Paper-based methods are inefficient, and you need physical space to store your files and documents. Paper documents can be easily misplaced, stolen, or damaged.

Automate your document management processes. Using electronic statements is a great way to eliminate paper for good.

Use accounting software. Accounting software will allow you to access accounting data anytime, anywhere, foster collaboration, improve accounting security, and improve bookkeeping and accounting accuracy.

4. Stay Informed

Stay up-to-date on industry developments. Follow eminent people in the financial world and affinity groups that publish articles, information, and opinions.

Do not give attention to preposterous rumors. It is best to hear it straight from the horse’s mouth (in this case, the IRS) so you are sure it is true. Visit the IRS website to watch videos and participate in webinars.

Need back taxes help? Have you got tax problem? Look no further than FinishLine Tax Solutions. We will create a tax strategy customized to your specific needs.

Why Hire a Tax Professional?

WHY HIRE A TAX PROFESSIONAL?

Filing back taxes can be both tedious and confusing, especially for non-professional who don’t customarily stay up-to-date with tax code changes. There are many tax laws, and all must be accounted for each time you file to avoid hefty fines or interest on unpaid tax. However, taxes are as inevitable as death, and unfortunately, ignorance is no defense where they are involved.

This is why some people choose to enlist the services of tax professionals or tax preparers during filing season. Apart from that, a helpful tip is to stay prepared for filing by ensuring you keep your bills and receipts for deductible expenses, especially if you run a small business.

If you’re wondering what the value of a qualified tax professional, below is a list of benefits you can enjoy from their services.

Saves Time

According to the IRS, the average consumer spends 13 hours to file their tax returns, although some estimates quote as high as 24 hours. If you’ve tried to do your own taxes, you have probably taken longer than one day to do it, especially if you have a small business or rental income to report.

Assuming your time was worth $20 per hour, you are easily spending $260 and above to file. Because you aren’t conversant with this process, you spend double or triple the amount of time a tax professional would take. The tax preparer works efficiently and does the correct thing on the first try, saving a ton of time and effort.

Cost is Tax-Deductible

If you itemize your expenses, the cost of hiring a tax relief specialists is a deductible expense on Form 1040. Therefore, you end up paying less tax because of this deduction.

Reduces Complexity

As mentioned, filing taxes is a difficult and complicated process. For the average consumer, there are hundreds of details to consider, and it’s very easy to make a costly mistake. What’s more, the Tax Code is updated annually, and you may not be aware of how such changes affect your next tax returns. This gets even more complex if you did any of the following:

  • Lost or made money in investments
  • Started or sold a small business
  • Sold or bought a capital asset
  • Bought or sold real estate
  • Changed your marital status
  • Changed your residence so that your income and residence are now different

A tax professional handles tax matters on a daily basis. They stay abreast of all tax codes and how they affect various consumers. Therefore, they are best placed to advise you on the impact of these changes and how you should file your next returns. Should you choose to do it yourself, always check how such changes affect your next returns.

Finds Relevant Deductibles and Credits

There are tax-deductible expenses and tax credits that most taxpayers qualify for, but the system and common tax software may not be updated on them. Therefore, you lose precious money and end up overpaying your taxes when you don’t claim all your relevant deductibles and credits.

A tax professional is aware of the latest credits and deductibles and how they affect various individuals and businesses. Therefore, he/she can ensure that you take advantage of them to reduce your payable taxes. If you have overpaid in the past, he/she can also help you to file amendments and request for refunds.

Assistance with Audits

Finally, should you ever be audited, a tax professional can work with you and your business to get the relevant bills, receipts and documents to support your returns. He/she can represent you when dealing with the IRS to ensure that you are protected. While only 1 percent of taxpayers are audited, it is best to have a tax professional if you ever land in these murky waters.

Conclusion

Tax accountants and tax professionals are real people, which means you can defer to them with any questions or concerns you have. Before filing past taxes this year, talk to a tax professional and find out how they can help you wade the murky waters of taxation reporting.