Why You Shouldn’t DIY Preparation Of Medium To Complex Personal Tax Returns
The tax season is here again! For some, it may pose little worry, but for others, it may be a stressful situation. After all, everybody’s tax affairs aren’t the same, and most people’s financial situations change every year. While it’s certainly not impossible to do it yourself, the question worth asking is, “Do I have what it takes to file my taxes accurately?”
If you’re debating whether you should work with an expert or DIY your taxes, it’s vital to know the possibilities behind both options. At Arrowpoint Tax Services, Inc., we believe that tax preparation should be handled by a knowledgeable expert, especially when there are complicated aspects involved. This is because you could face several challenges on your own as a novice to tax preparations. To help you understand what we mean, we’ve covered a few reasons why you shouldn’t DIY preparation of medium to complex personal tax returns.
1. It will cost you in the long run
Making mistakes with tax return preparations will cost you in the long run. For example, you may take a deduction you are not eligible for. This kind of mistake may subject you to paying interest and penalties in the future, along with paying back the original refund.
2. You may leave money on the table
Yes, it is possible that you may not take all available credits and deductions because you aren’t aware of them. On the flip side, you may claim deductions you might not be eligible for, causing you to pay back the original refund with penalties.
3. You may not be familiar with certain tax rules
Tax laws change every year, and when you’re not familiar with certain tax rules, it could prove costly when you choose to prepare medium to complex tax returns on your own. Therefore, as you prepare your own tax return, you should be familiar with the tax rules that apply to your situation. It could be as simple as investing the time to do the research. You should be a person that is attentive to detail and knows exactly where to check. Guesswork can be costly.
Do the right thing - Hire a professional
Although certification is not necessary to prepare a tax return, it is recommended that you find a Certified Public Accountant (CPA) to assist you in preparing a medium to a complex tax return. It is preferable to work with a CPA because they have years of experience. However, if you must prepare your medium to complex tax return, here is another alternative. We suggest having your CPA prepare the tax return in the first year. You can then attempt to prepare your medium to complex tax return the following year by using the CPA’s base year return as a guide. But, be sure to seek professional help on things you are not sure about.
While hiring CPAs can ease the stress of preparing your taxes, if you look carefully, you can find that these professionals have a very reasonable cost structure. Their goal is customer retention. So, like anything else, you can always negotiate the cost because the field is somewhat competitive.
For a reliable accounting firm in the Bronx, New York, reach out to Arrowpoint Tax Services, Inc. We specialize in bookkeeping, tax preparation, IRS, and payroll services serving individuals and businesses. We are a team of certified public accountants who have gained ample experience over the years. This allows us to solve complex tax problems while offering individuals and small businesses the kind of service level typically afforded to large corporations and wealthy people.