September 19, 2008, Newsletter Issue #134: Why Should I Pay For My Tax Return Preparation?

Tip of the Week

Not every taxpayer will need to pay someone to prepare their income taxes. However, many times tax information that needs to be reported is too complex for an individual or business to handle. Some guidelines to follow in determining whether you need a paid tax professional are as follows:
You read about a tax credit, think you qualify, but do not know how to claim one. You do not understand how to figure the amount.
You receive income from many different sources.
You own rental property and have related expenses and income that you do not know how to handle.
You have read the income tax laws that affect you, but you still do not understand them.
You operate a business and have many expenses that you think qualify as deductions. However, you do not understand how to report them on your income tax return.
If you find any of these situations apply to you, paying someone to prepare your income tax return is recommended. The benefits of paying for income tax preparation include:
Paid tax preparers are expected to know the income tax laws.
Paid tax preparers can be responsible for any errors found on your income tax return. By knowing the tax laws, they can help you save tax dollars.
They can help you plan for any future income tax liability.
They can save you much time and frustration.
hey can save you from any IRS contact regarding your tax return.
By designating them as a third party designee, your paid preparer will be your source of contact whenever the IRS has any questions regarding your tax account.
Most taxpayers, other than those filing Form 1040EZ, will probably benefit from the expertise and advice of a paid income tax preparer.

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