1. SKILLS AND CREDIBILITY
It is really important that you investigate the qualifications ofthe person you have preparing your taxes. Make sure thatthe tax preparer you select can and will take the time toresearch any problems they might not be familiar with.
In addition, utilize a reliable tax preparer that signs yourtax return and offers you with a copy for your records.
Consider whether the individual or firm will bearound to respond to questions about the preparation of yourtax return, months, even years, after the return has beenfiled.
2. TECHNICAL EXPERTISE AND EXPERIENCE
While many tax preparers know a little about tax laws, manyknow practically absolutely nothing about technical concerns. They need tohave the technical knowledge to even know where to look, and the experience to know what to look for.
CPAs, accounting professionals, and bookkeepers, without a taxspecialty, may not have the time, experience, education, insight or technical ability to deal with the technicalanalysis and identification of concerns essential toeffectively avoid avoidable tax overpayments.
It is important that the tax expert you choose not only hasa number of years of experience tackling technical concerns, but likewise an excellent technical knowledge base to draw from.
3. EXTENSIVE KNOWLEDGE OF THE LAW
In this market, it is what you don't know that expenses youmoney! There are literally volumes and volumes of laws thatcan possibly impact the amount of taxes you end uppaying - and those laws change continuously. What mosttaxpayers don't understand is that even small modifications canaffect your taxes in a big way. Cash Magazine's tax testhas shown that sadly, really few tax preparersactually take the time to discover the numerous new taxlaws released every year.
This is an overall injustice to the taxpayer because theresult is a representative who is unable to recognize a taxissue, tax law, or fact that could support and justify areduced tax liability. For this reason, the tax professional youchoose must have extensive understanding of current laws andstay continually educated on all new and updated tax lawsand guidelines.
4. ATTENTION TO DETAILS
Most CPAs prepare income tax return for around threemonths out of the year and invest the balance of the timepreparing books, records and monetary statements. Thismakes it very difficult to stay up to date with the ever-changingtax law, especially on a part-time basis. Between February
1st and April 15th, the typical tax preparer completesabout 480 returns. With this frustrating work it isnearly impossible for an accountant to put in the time duringtax season, to thoroughly assess your tax circumstance andfind all the most recent tax laws and guidelines that can beapplied, to help reduce your tax liability.
Discover a tax specialist that not just stays up to date with existing taxlaws and changes, but likewise is not under the exact same timecrunch and pressure. By doing this they can take the time toclosely inspect your tax circumstance and aggressively lookfor every reduction that can be used.
One of the best ways, however, to ensure that your taxpreparer is doing the very best possible task for you, is to geta qualified consultation from a 'tax expert" whospecializes in reviewing taxes and looking for areas whereyou might be overpaying.
" The March of Tax Changes in the last few years Has Made It
Easier to Err, and the New Tax Law Will Only Aggravate the
Issue."( US News and World Report).
Taxes may be one of the things you can be sure of in life, but the very same can't be said of tax laws. The current tax law modifications consist of the mostsweeping changes in 15 years.
Profits Code.
" In June 2001, for instance, President Bush signed into lawthe Economic Growth and Tax Relief Reconciliation Act of.
The Act considerably changes the tax treatment ofseveral significant monetary problems, consisting of earnings, retirement cost savings, instructional cost savings and estateplanning. It's an intricate law that amounts to over $1trillion in tax cuts, however most of those cuts are beingphased in (and in some cases phased out) over a 10 yearperiod, and the whole act itself will end in 2010.
Oct. 2002).
Now, It's More Important Than Ever To Get A Second Opinion.
On Your Taxes to Ensure You Are Not Cheating Yourself and.
Providing Uncle Sam a Windfall.
A second opinion will not only give you the peace of mindthat your tax preparer is doing the very best possible task theycan for you, but more importantly will make sure that you arenot paying one cent more than your reasonable share.
The IRS has $4.8 billion dollars of taxpayers' overpaidtaxes, sitting in a trust fund in the U.S. Treasury-- butit is not necessarily gone for good. Taxpayers can fileamended returns up to 3 years later, and any moneyrefunded is paid back with interest. (ABC News, April 12,.
2002).
There are literally volumes and volumes of laws thatcan possibly affect the quantity of taxes you end uppaying - and those laws change continuously. Money Magazine's tax testhas revealed that sadly, really few tax preparersactually take the time to find out the hundreds of new taxlaws released every year.
Taxes may be one of the things you can be sure of in life, but the same can't be stated of tax laws. The recent read more tax law changes consist of the mostsweeping changes in 15 years. It's a complex law that amounts to over $1trillion in tax cuts, however many of those cuts are beingphased in (and in some cases phased out) over a 10 yearperiod, and the whole act itself will end in 2010.