If your adjusted gross income is less than $57,000 and your tax returns are relatively simple, you may have no need to pay for professional tax preparation. You can file your returns yourself with E-file on the IRS website along with over 100 million other Americans. If, however, you are a real estate investor, a small business owner, or someone with a complex tax situation, you may be better served by hiring a Certified Public Accountant (CPA) for tax preparation.
Here are the top three benefits of paying for professional tax preparation services.
1. Top Quality Advice Can Save You Money
Although CPAs charge significantly more than storefront tax preparation or enrolled agents, the quality of their advice is far superior and can save you money. CPAs offer the best possible advice for all federal, state and local tax matters and you can expect them to have exemplary knowledge of all current tax laws. Their advice can prove invaluable in terms of staying abreast of the latest tax changes and trends. A CPA will educate you about all available deductions and guide you on how to minimize your tax exposure in the future.
2.Help With Navigating ‘Grey Areas’ Of Tax Law
CPAs excel and really start to earn their fees when it comes to so-called ‘grey areas’ of tax law where decisions are based on judgment calls and interpretations of IRS rulings. If you have highly complex tax returns to file, the decisions that CPAs take can help minimize your tax obligations and save you significant amounts of money. CPA firms can give you the best advice on which tax strategies to take precisely because of their experience with previous clients. A CPA will be able to use their past experience of filing other complex returns to find ways of reducing your tax bill.
3. Access to Industry-Specific Knowledge
A key benefit of hiring a CPA is the business and professional networks that they belong to. While many CPAs serve clients in a wide range of professions and areas of the economy, some choose to specialize in key areas to ensure that they maintain an encyclopedic knowledge of tax laws in those areas. Specialist CPAs are attuned to the latest developments in tax laws and must be highly knowledgeable about the outcomes of past IRS judgments in order to provide the best possible tax preparation service.
If you have complex tax returns to file, CPAs can offer a wealth of knowledge, assistance, and insights to help you save money. CPAs can use their experience and expertise to give you the most economical tax preparation possible.
Hire an exceptional service provider to take care of your books for you. When you hire LedgersOnline, we won’t just balance the books – you’ll get guidance on the next business steps to take and how to get your cash flow running more efficiently.