When to Use a CPA for a Tax Return | SmartGuy

When to Use a CPA for a Tax Return

Accountants - Certified Public

Filing tax returns can be a nightmare for people who are not trained or familiar with the field. If you find yourself in that predicament, you should do the honorable thing and hire a Certified Public Accountant (CPA). You must know when to use a CPA for a tax return to avoid the headache that comes with doing so yourself.

A CPA is a professional trained to carry out such calculations and to pore over tiny details. If you make errors in entering certain data that could compromise your tax returns, the IRS would demand an explanation and they could penalize your perceived negligence. You could pay a lot of money in terms of fines. If you are prone to such errors when filing your tax returns, you need to think seriously about hiring a CPA. This is because recurrent errors in reporting your tax could have terrible consequences if the IRS decides to act on it. Such mistakes could cause a delay in you getting a refund back in case you happen to have one.

The CPA can save you from paying more. This is because a CPA is more conversant with the tax law than a novice that understands very little. A CPA keeps abreast of the changes in legislation regarding tax, as his career depends on it. Such a professional deals with similar issues on every occasion with different clients.

A CPA will save you many hours of time. You would spend almost 30 to 40 hours of your time poring over the books. This is especially if your taxes are a little complicated and require being careful to avoid making mistakes. You will also rest easy, confident that a professional is doing the necessary on your behalf.

In the event that an audit is requested about your taxes, you will not be alone. The professional that helped you file your tax returns will not abandon you at your hour of need. Your CPA will accompany you to the IRS to defend what he filed. If you filed the returns by yourself, you would have a horrid time defending it because you would not be familiar with specific aspects of the law.

You will know when to use a CPA for a tax return if you need to get a tax refund as fast as possible. Your CPA can file your tax electronically. When the return comes, you will receive it in your checking account. This simple act is convenient and saves you valuable time.

You can consider a CPA as your personal trainer who keeps you on your toes to avoid complacency. If you are not itemizing, your CPA could advise on the benefits of doing so. For example, your taxes would be somehow complicated if you have various deductions, own a home, own rental investments and do stock transactions. If you have never trained for this, it could be the reason for your migraine. You can save thousands of dollars if you use a good CPA to do your tax compliance for you. This could be when to use a CPA for a tax return. Your complexities could be the reason why you need a CPA so badly. If your CPA asks you questions, he knows why. The implications could reflect in your final return.

If finding a good CPA is the reason why you have not enlisted the services of a CPA, you should ask your friends or family for references. These references could be CPAs that they have used before to file their tax returns and they have not had any problems so far. Ensure you compare the qualities of each reference you have been given.