3 Reasons You Should Not Prepare Your Own Federal Income Tax Return
Nowadays, there are more programs than ever that claim to help you file your own federal income tax returns with ease. While it is true that many of these programs are very user-friendly, this does not mean that choosing to file your own tax returns is a good idea. In fact, there are several reasons why this is a task best left to a professional accountant. Continue reading below to learn more about three of the reasons you should not prepare your own federal income tax returns.
Reason #1: You May Be Missing Out On Money
One of the primary reasons that many people choose to file their own income tax returns is that they are looking to save money on the cost of tax prep. The problem with this is that DIY tax prep could result in you either paying more in taxes than necessary or getting a smaller refund than you are entitled to. This is because unless you are familiar with all of the different tax credits and deductions available under the law, it is possible for you to miss out on the opportunity to maximize your refund or limit your tax liabilities. Having a professional handle your federal income tax returns will ensure that you can take advantage of every money-saving opportunity that is available to you under current tax laws.
Reason #2: DIY Tax Prep Offers No Audit Protection
Each year the IRS performs random audits of both personal and business tax returns. This means that even a flawless return can be audited. If you find yourself at the center of a random audit, you will need to be prepared to defend your return. If you took a DIY approach to your tax prep, you will either need to hire a tax lawyer to represent you in this process or face the audit process alone. However, if you chose to have your returns prepared by a professional, representing you through the audit process is a service that will be included in your tax preparation fees.
Reason #3: Get Fast Access To Refund Funds
If you need your tax refund funds as quickly as possible, you will want to turn to a professional to get your federal income tax returns prepared. This is because many of these professionals can offer what is known as a refund anticipation loan. These loan products allow you to get access to either all or a portion of your refund funds in as little as one day. Once your return has been processed and your refund is released by the IRS, your refund will then be used to pay off your anticipation loan. This is not a service that is available when preparing your own income tax returns.
For more information, contact a service provider like Michael F. Simonds, CPA.