Filing income tax returns is a yearly activity for which we need to get used to. When you entrust your personal information to a tax advisor, you share enough personal details to expose your personal and professional profile. If your filing includes your family, you have just magnified the exposure. When choosing a Tax Advisor, use the same level of cautiousness as choosing an Attorney or a Plumber. Let’s review a few reasons why you should hire a trusted and experienced tax advisor.
Identity Theft. – This kind of felony has been in the rise for the past couple of years. Imagine what would happen if a tax preparer leaves your income tax return at “plain site” in the office while taking care of another client. In today’s technology world, it will only take a minute for someone with devious intentions to photograph your information while the tax preparer stands up to make copies or step out of the office to use the restroom. Your tax return has enough information to create a fake identity; damaging your reputation, costing you thousands of dollars in damage controls and maybe a lifetime of headaches whenever you apply for credit.
Fraud. – Malicious tax preparers offer services at a below market price because the ultimate intention is not to charge you the tax preparation fee, but rather to create a pool of candidates that will eventually become victims of fraud; routing refunds to fictitious bank accounts, selling your dependents’ information to inflate refunds and even create two sets of records to achieve illegal objectives.
Maximize your benefits. - It is very important to report all of your eligible expenses to reduce your tax liability (legally and accurately). An average tax preparer will only focus on mundane expenses. An experienced trusted tax advisor will go above and beyond the average. The trusted advisor will have studied the most recent tax regulation changes, review your individual/family situation and make recommendations that will maximize your return while keeping you in compliance. By the way, the tax preparation fees are tax deductible.
Audit Assistance. – If you are selected for an Internal Revenue Service (IRS) routine audit, you should be prepared to present any supporting evidence to validate the information on your tax return. An average tax preparer might not even know how to assist you. They might tell you that the extent of their services was to “Do your taxes”. A trusted advisor will support you on an audit by sharing the exact documentation requested by the IRS. Trusted advisors might even assist you in requesting prior years’ income tax transcripts and file amendments.
Next time you choose your tax advisor, remember, trusted tax advisors provide the peace of mind that cannot be purchased by paying $25 to $50 dollars a year. Instead of thinking to save a few dollars once a year, think of the headaches you can avoid by hiring an experienced/qualified tax advisor. You will be guaranteed to received your maximum return with the minimum amount of risk.
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