Four Reasons To Hire A CPA
Updated: Jul 20
Each year, millions of Americans have problems with the Internal Revenue Service because of errors on their tax returns and other related documents. Problems with taxes are not to be taken lightly, of course. The consequences can range from financial penalties to imprisonment. Either way, it is best for people to avoid getting in trouble with the law. After all, everyone already has his own share of problems at home or work and nobody needs additional things to worry about - especially not when these things involve taxes and the government. Whether you are employed or have a business of your own, taxes are not one thing you can avoid. Fortunately, if you lack knowledge on these things or are simply busy with too much work to do, then you can always hire a CPA to handle your financial records for you.
Because it's something they studied in the university and it's now also all in their day's work, these CPA's will always know what to do in any situation that involves your taxes. For example, in a simple case where you may have misplaced your W-2 or 1099MISC, a CPA can give you advice on what to do. If you have misplaced your forms, you will have to get another one immediately so you can fill it out and attach it with your federal or state tax returns. Without these forms, your documents will not be processed and you will be waiting on nothing and simply discover that your papers have not even been touched because of your missing forms. Unless you yourself know about these things, you may never have your refund as long as you haven't completed the requirements yet for getting it.
Tax deductions are some of the things you may be looking forward to during tax season. However, unless you know what deductions are suitable for you, you may never be able to enjoy them. People who prepare their own tax documents usually miss out on certain deductions they may have the right to lay claim to, and end up having to pay the government more taxes than they should. It is then a good idea for you to research on the most commonly missed tax deductions so you can be sure that you won't miss claiming them for yourself. Again, if you're not sure you know what you're looking for, let alone prepare your own documents, find a CPA who can help you with this. In these hard times, it is always a breather to be able to save as much as we can for sustaining our needs and those of our families, especially when we have growing children with growing needs.
In case you feel that you will not be able to pay the government the amount of taxes being collected from you, your CPA will again know what to do. It is never a good idea to simply ignore your obligation of settling your taxes as this will only bring you more trouble than you started with. With a CPA, you would know exactly what to do. For example, you can ask for an extension deadline. There are also technical stuff that you would need to consider when asking for this extension, such as whether the amount due you will be based on this extension deadline or the original deadline. If you are simply unsure about how to find solutions to this problem, your CPA will be the best person to give you the right advice.
On top of these, we all know that the federal government and the IRS are continually changing tax laws, and unless we have ample knowledge about developments on this front, we may always find ourselves having problems settling our taxes. To make things easier for us, it is then best to hire a CPA who can give us the right advice under the right circumstances so we can continue living in a tax problem-free world.
By Greg Pierce