Many taxpayers believe filing taxes is a time consuming, boring and complex chore. A good tax accountant can be the perfect option. Tax accounting software has also become an option for simplifying this annual task for do it yourselfers. Even the IRS offers a large amount of taxpayer resources to those that choose to file tax returns themselves. However, even with all of these resources filing ones own taxes is still not always that easy.
Tax accounting software is popular in small firms and appears to be sufficient for personal income tax filing. This an affordable option to hiring a tax accountant. Though, to properly use tax accounting software, you must have the basic knowledge of accounting principles, tax codes and take the time to learn how to use the software. This is not easy as well as time consuming and is why a tax accountant can never be displaced by software or a machine.
It must also be taken into account that tax laws and codes tend to be complicated, with rules and guidelines that seem contradictory. Not to mention they are ever changing. When a bill passes in Congress there is a potential the bill will have an effect on tax laws. This is the reason that large corporations usually have large teams of tax accountants.
However, you do not have to be a large corporation to realize the benefits of a tax accountant.
The tax accountant performs tasks such as tax planning and filing tax returns. With the objective of tax savings and seeking the minimum tax liability, a large portion of the time spent by a tax accountant is doing tax research. They also analyze budgets and gather other financial information in order to provide the best tax consultation.
For the individual or business that desires to pay as little taxes as possible, a tax accountant can make that possible by offering you expert tax advice and detailed tax planning.
You may need a tax accountant if you started doing your own taxes and got stressed, confused or found the process consumed too much time. If you have a tax problem, such as filing back taxes, a tax debt, or an IRS audit a tax accountant can be the remedy to your problems.
If you have a complicated or complex tax situation that requires expert tax advice or tips, you live outside the United States, have investments in stocks or bonds, own rental property, or run a business you may find that you will benefit greatly from the services of a tax accountant.
A tax accountant can be a Certified Public Accountant(CPA), Enrolled Agents(EA’s) or Tax Attorneys. An Enrolled Agent is a professional that has passed IRS administered tests and background checks. Their specialty is usually complex tax issues. CPA’s are accountants that have passed the comprehensive CPA exam and are licensed by the state. They will specialize in one area. However, all CPA’s do not specialize in tax issues. Tax Attorneys are lawyers that specialize in tax law. Most tax accountants will be experts in a specific area of taxation for example Trusts and Estates, investments etc.
If you look at your tax situation and conclude that professional tax help will benefit you, a tax accountant can give you expert tax advice, tax planning and representation. Their job is tax planning and helping the client legally pay a minimum of taxes. Use your due diligence in finding a tax accountant in your area.