Are you tired of searching online for the best tax preparer using the phrase, ‘tax preparer near me?’ Or are you wondering why you need the assistance of a tax preparer when you can prepare and submit tax returns on your own?
Tax preparers charge some amount for the services that they render. Countless benefits come to you when you use them. Many people do not understand the benefits that come from using a professional tax preparer.
As a result, they file their tax returns on their own only. Of course, you may not need the services of a tax preparer when you know the tax code pretty well. Sometimes, making a small mistake or not using specific tax credit or deduction can cause you to lose money.
Who is a Tax Preparer?
Many people are offering tax preparation services. Not everyone you find online is a professional tax preparer. You must understand who a tax preparer is before using their services. It is the only way you are not going to make any mistake when picking one.
A tax preparer is a professional that has all the necessary qualifications to file tax returns in a nutshell. They are well-versed with tax codes, procedures, laws, and policies. Tax preparers charge a fee to assist you with filing the tax returns.
The amount they charge largely depends on the work and the situation you are in, to be precise. The fee a tax preparer charge to individuals and companies, as a result, differ. Tax preparers follow the guidelines that IRS provides and these guidelines keep changing every year. They are well aware of these guidelines’ changes due to working in this field for a long time.
People That May Benefit Using a Tax Preparer
Many people do not have a great understanding of the tax codes or guidelines. These are some of the key reasons why hiring a tax preparer might be beneficial to you.
You should type the phrase, ‘tax preparer near me,’ if you fall under any one of the following matters:
- You do not have a lot of time to prepare or file tax returns on your own
- Feeling overwhelmed or burdened when you plan on preparing tax returns
- Unaware of the tax implications associated with your financial activities
- Your tax situation is quite complex and complicated that you cannot fix it using your skills or knowledge
Here is a list of people that will benefit when they choose a tax preparer:
Business Owners and Self-Employed: Small business owners, freelancers, and consultants who need to pay self-employment taxes come under this segment. Those who are doing side-hustling will have to pay self-employment taxes apart from paying taxes on the salary.
Selling or Purchasing a Home: There will be a slew of taxes such as capital gains or losses that come into the picture when you buy or sell a house. There might be deductions that you might qualify for, which you might miss if you file taxes yourself without considering these things.
Using a competent tax preparer is the best solution when you are in this situation. A professional tax preparer will do everything to provide you with proper guidance.
Here is a list of reasons why one must use a tax preparer.
Remove Unnecessary Headache Off Your Shoulders
People prefer to work with a tax preparer because they can remove the most complicated task from their to-do list. Tax preparers know the tax code very well. They have a fair idea of which forms you have to submit. You might not know this well, as your work may not require you to put a tab on the tax code.
For example, a small business owner might need to fill and submit IRS 1040, Schedule C, Schedule A, Schedule SE, and various other forms when itemizing deductions.
On top of it, each form requires the person to submit it to fill all the required fields duly. For example, you might have to fill the amounts in 1099-INTs and 1099s. Now, who has the time in the world to go through the tax code, learn, and apply things that they understand. Isn’t it time-consuming?
You can forget all of this when you take time to find a tax preparer using the words ‘tax preparer near me.’ Tax preparers have vast experience in preparing and filing taxes. They will know which forms you need to submit and what information you need to fill on those forms. They will take care of these aspects. You only have to give the information related to finances and income to them.
Say Bye to Errors
Small or simple errors can cost you a lot. IRS website lists out the common mistakes people make to avoid doing them by checking on that list. Some errors can cause so much headache and sometimes can delay your refund considerably. For example, misspelled names, math mistakes can cause so much confusion and chaos.
If there is tax liability because of a mistake you made on the return, you will have to face dire consequences. You may end up paying a fine or interest on the total amount.
The fine or interest will start to accrue from the date you filed your tax returns. Now, this does not mean tax preparers are perfect, but they will do all the necessary checks to avoid mistakes and errors from creeping into your tax returns. It is one of the key reasons you must choose a tax professional who has experience and expertise.
Get the Best Professional Advice
Not everyone is eligible for all the deductions and tax credits that are available. Only a professional tax preparer can indicate if you as an individual qualify to use a specific credit or deduction.
They may not allow you to use it if you do not qualify, thereby saving you from unnecessary penalties or headaches. The tax code is quite complex.
It is better to use a professional tax preparer when you are unsure of where you are heading. You are not going to make any mistake when you use a tax preparer.
Work with a professional tax preparer when you are unsure of the tax system’s loophole. An experienced tax preparer with vast knowledge and expertise in this field can give you some of the best advice and instructions.
Avoid Complex Situations
You might end up in a very complex situation if you do not take caution when preparing the income tax returns.
Since you will confirm that all the information you provide on the income tax return is accurate, you might face dire consequences if you misrepresent or submit the wrong information. But, when you use a professional tax preparer, you might be able to protect yourself from this kind of consequence.
You are going to shift the liability to the tax preparer when you use one. Tax preparers will run through the documents to make sure that there is no error in the form. Though, they are going to take care of the most vital elements of filing the tax returns.
You must check all the documents yourself to ensure no mistake before it is submitted. Yes, this is another reason you must search for a tax preparer near me on the search engine.
Focus on Other Aspects
One has to spend a lot of time and effort to understand the tax code and apply them. If you are a busy professional, you may not have the time to learn all these aspects.
Instead of spending so much time learning it, the best alternative is to use a tax preparer’s services since a tax preparer spends most of their working hours preparing the tax returns.
They will know what will work and what will not. Your aim should be to find the best tax preparer who understands the tax code well. Tax preparers that have vast experience will know the common mistakes people commit when preparing tax returns. They will have a good knowledge of the tax loopholes that can help you save a lot of money.
You can relax and focus on other aspects of life while the tax preparer does everything from his end to fix the problem. A good tax preparer will help prepare the tax returns and help you save so much money.
Provide Audit Assistance
Tax audits can be hectic and can drain your energy. You can avoid this situation when you use the services of a tax preparer. Besides preparing the tax returns, they will also represent you if the IRS invites you for a tax audit.
They will also prepare the documents that are necessary for the audit. These things can help in freeing you from complex situations. One thing you should remember, however, is the fact that only a tax attorney, enrolled agent, or CPA can provide this kind of assistance.
Only one percent of taxpayers get audited every year. But, taking a chance on it might be a risky thing. Facing IRS all alone might not be something that you will love. Hence, it is wise to use the services of a tax preparer.
Picking the Right Tax Preparer
The golden questions that stand in front of you are how do I find the best tax preparer near me? You cannot make any mistake when you are picking one. Making a wrong choice will cause more problems than good.
Here are some guidelines that will help you in choosing the right tax preparer:
Check the Reputation
Yes, this is the first thing that should concern you when looking for a tax preparer. Take your time to check with your close connections if they know a tax preparer.
If a connection of yours is giving you a recommendation, take time to check why they are suggesting a person. It would be best if you spoke with your contacts to learn about their experience. You should plan to proceed further if a tax preparer has the best name and reputation.
One another way to check if a tax preparer is upto the mark is to check the reviews and ratings they received online.
Nowadays, people are ready to share their thoughts online than ever before. If you take some time to skim through them, you will understand the tax preparers with the best name and reputation. You can make an informed decision.
Check the Qualifications
Yes, this is one thing that should concern you when you are looking out for a tax preparer. They should have a PTIN or Preparer Tax Identification Number if they assist you in filing your taxes. You should, however, need to understand that getting a PTIN number is not a difficult task.
You should, therefore, take the time to search for a professional that has the necessary qualification to assist you better. Here is a list of some of the tax professionals that you can find. Depending on your need, you should pick one that best fits your requirement:
One has to pass a three-part comprehensive test to become an enrolled agent. These tests focus primarily on business laws apart from representation issues. With the working knowledge they have, they can handle quite some taxes related to a business.
CPA or Certified Public Accountants
If a person wants to become a CPA, they need to study accounting at the university level before appearing for the CPA exam. The State board gives them the license to practice. Those who get this credential need to continue learning to keep the license with them. Most of the CPAs are experts in tax preparation and tax planning.
One has to earn a law degree to become a tax attorney. Attorneys understand the legal aspects of tax issues, and they can be of great help in assisting you with tax planning, preparation, and remediation, to name a few of the things they can support.
Now, consider your situation and pick a professional that best suits your requirement. Of course, tax software is available that you can also use if you are planning to prepare taxes. But, there is a massive difference between using software versus using a tax preparer.