Why have your 2011 tax return professionally prepared?
1. Savings in money - The IRS tax law is complex. There are many tax deductions and tax credits available to taxpayers that they are unaware of or do not know how to file correctly to take advantage of. A tax deduction will reduce your taxable income while a tax credit will reduce the amount of taxes owed. A refundable tax credit can be claimed even if it exceeds your tax bill. This means the IRS gives you money. This included child credit, earned income credit, and homebuyer credit.2. Tax Software is usually not dependable - Over 95% of the audits we did last year were due to taxpayers preparing tax returns themselves and most of them used tax software. Of the audits I did, most of the taxpayers were assessed not only additional taxes but steep penalties and interest due to the returns for inaccuracy penalties.
3. The IRS can contact the representative if necessary - If the IRS needs to contact the taxpayer concerning any issues on the return, the election can be made on the return for the IRS to contact the representative.
4. Accuracy - It is estimated that approximately 21% of paper returns are audited for accuracy errors. Also, many taxpayers miss valuable tax credits and deductions because of not being aware of them or filing for them incorrectly.
5. Licensed - The majority of states do not even require a tax preparer to be licensed or experienced to prepare tax returns.
6. An EA, CPA or Tax Attorney - is not only licensed to prepare taxes but can represent taxpayers before the IRS and in an audit. An experienced one will be able to evaluate your tax information and answer your questions.
7. Convenience - According to the IRS the Form 1040 takes about 26.4 hours for the average taxpayer. The simplest 1040 EZ Form has approximately 33 pages of instruction. At CKTax our clients can simply e-mail or fax the documents to us and receive the tax return back by e-mail.
8. Latest knowledge of tax laws - An experienced licensed professional is knowledgeable of tax laws especially any recent changes and will be able to work those to the taxpayer’s advantage.
9. Self-employed or business - Many self-employed or businesses not only do not have knowledge of tax law but also of accounting which is very beneficial if you are self-employed. You will also have access throughout the year to tax planning.
10. You end up owing taxes, but cannot pay - A tax professional will be able to discuss your options for paying the taxes and possibly even reducing them.
Other Services Include:
