Updated: Oct 19, 2021
Tax time is here! Covid-19 has brought about a lot of tax changes due to the different relief actions that the Government provided during 2020. Then with the Biden Administration taking the White House last month we can expect to see more changes. If your tax return is a simple one, you may be up to filing the return yourself. If your situation is somewhat complicated, seeking the help of a qualified professional is probably the best move to ensure that you get all the deductions and credits that you are entitled to this year.
Our firm specializes in helping people resolve their back tax problems such as filing years of unfiled returns, settling your back taxes with the IRS, or negotiating favorable payment plans often unknown to the common taxpayer.
There are millions of people getting threatening letters from the IRS every year and we can help. But how did these mostly honest people end up in trouble in the first place?
When you hire a professional to do your taxes, you assume that the person doing your taxes is an expert, with years of training, the right licenses and certifications and the expertise needed to do the job and do it right. In many cases, that blind trust is not too bad, but you cannot simply pick any old tax preparer. You have to understand:
The fact that the person you hire is allowed to do taxes is no guarantee of quality, or even of qualifications. Here are five things your tax preparer may not tell you, and how they can earn you with an unwanted tax bill at the end of the year.
Note: The COVID-19 tax relief, forgivable loan programs and stimulus checks all have different tax consequences we haven't even thought of that you’ll need to consider. If you have any tax trouble or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today at 502-632-3171 and ask to book a tax relief call OR book your own call https://bookingbowens.as.me/taxrelief. We help people find tax relief.
1. A Lot Of Tax Preparers Have No Tax-Specific Training or Expertise
The fact that a person is allowed to complete tax returns means almost nothing. The tax preparer is not required to have tax-specific training or expertise to obtain the paid preparer tax identification number (PTIN) they need. The only requirement for getting the required PTIN is the completion of a simple form - one that takes about 15 minutes to fill out. Although much is required to obtain one you can check to see if your preparer even has one by checking out the PTIN directory. If the professional that you're considering is not on this list you should NOT use them to file your tax return. A PTIN is required by all tax preparers accepting payment for filing.
Before you hire any tax professional, you should ask about their specific training, qualifications and expertise. Find out how long they have been doing taxes, ask about audits they have been involved in and share your personal tax situation. Above all, do not hire anyone until you feel comfortable with their ability to handle your tax return properly.
A CPA or Enrolled Agent licensed by the IRS is your best bet when looking for a licensed professional and experience matters when searching for qualified tax professionals. We hear horror stories from our tax relief clients all the time where the tax preparer messed up something on their tax return or didn’t give the client the right tax strategy, so they ended up with a tax bill that could have been avoided.
Most taxpayers blindly trust their tax pro and don’t thoroughly review the deductions and tax return draft.
It is important to know how things work and what you can do to ensure the right level of attention. It’s also extremely important to review the return in full detail to avoid any unwanted surprises, audits, or unforeseen tax debt.
2. I May Not Research Unusual Deductions and Tax Breaks
Professional tax preparers tend to be a pretty conservative crowd when it comes to taking deductions. That is good news when it comes to your chances of being audited. It can be bad news, however, for your overall tax bill.
Your tax preparer will no doubt apply the most common deductions and tax credits to your return, things like the deduction for educational expenses and health care costs and the earned income and retirement tax credits. What they may not do is research more unusual tax credits and deductions, even if they could potentially save you money.
If these special circumstances apply to your return, you should discuss the situation with your tax preparer and look for ways to include them with your filing. You may need to pay an extra research fee or renegotiate the cost of preparing and filing your return, but the tax savings could be worth the extra cost.
3. CPA Does Not Mean Tax Relief Pro
When taxpayers get into tax trouble or get behind on paying their tax debt, they often turn to the very same person that prepared the return. Unfortunately, most CPAs and tax preparers are not skilled in tax relief.
Tax relief expert means they are knowledgeable about the available programs the IRS has to settle your tax debt or give you favorable payment terms that don't drown you in penalties and interests. Even if they think they know, they often aren’t experienced in negotiating with the IRS on your behalf.
It is easy to assume that every CPA is a tax relief expert. After all, the CPA designation is one of the most difficult professional statuses to obtain.
Even so, not all certified public accountants are tax relief experts, and many do not know any more about settling your tax debt than you do. Some CPA firms prepare tax returns for their clients as a courtesy, but their staffs may not have specific training or expertise in tax law, or tax relief negotiations.
If you have back tax debt, I highly recommend readers to reach out to our firm first. Our clients never have to talk to the IRS when they provide us with the proper permission, and tax resolution through our firm can save you money and time in the long run. You might also be eligible for other IRS relief programs or get your penalties reduced or removed. We'd love to see if we're a good fit but you have to take the first step and book the call! www.bowenstaxsolutions.com or 502-632-3171.
Timalyn S. Bowens EA is America's Favorite EA and Louisville's Tax Expert that will work hard to find a legal solution that is customized for you! As an Enrolled Agent licensed through the Internal Revenue Service Timalyn is able to fight the IRS for taxpayers in all 50 states.
When you are facing questions regarding your personal or business taxes, working with a professional makes all the difference. At Bowens Tax Solutions, we serve our Louisville-area neighbors by providing the tax services and knowledge needed to succeed. We are here to assist you with your tax issues and preventative care. Visit our website at www.bowenstaxsolutions.com for more information.