– (BUSINESS WIRE) – Wolters Kluwer Tax and Accounting (AEX: WKL):
What: While some taxpayers use consumer tax filing software to prepare their own tax returns without the involvement of a tax professional, many also find that in their lifetime they go beyond simply receiving a Form W-2 and nothing more feel comfortable answering the control software queries completely and precisely. And as people’s lives and tax laws get more complicated, so too does the process of filling out and submitting your income tax documents.
Why: At some point, many taxpayers, including those who started using consumer tax filing software, decide it is time to switch to a tax professional. Here are some of the factors that could play a role in this decision.
Comfort level. Some people like to work through a tax return and others don’t. If you find that working through a tax return is causing you anxiety and discomfort, a professional may be able to help
Complexity of your life. A tax return can be complex and transformative in almost any area of life – marriage and divorce, having children and their education, starting your own business, owning or doing business in more than one state or country, significant investment transactions, charitable donations, health, spouse death or retirement. These circumstances can raise tax issues that you have not faced in the past
Complexity of Tax Law. The complexity of tax law is not just an issue for wealthy taxpayers. The Income Tax Credit, Child Tax Credit, Long Term Care Credit, and Repayment Credit, among others, can be complicated for lower income taxpayers and cause problems with the IRS if not handled properly. If you’ve made mistakes with your tax return in the past, it may be time to consider professional help
Tax advice. Increasingly, the tax return is something to keep an eye on all year round. Year-round planning can pay off at the time of your tax return, and having a tax professional to help with that planning year-round, not just for your next tax return, but for years to come, can be a significant tax benefit
Solving tax issues. In general, if a dispute arises with the IRS, even after you have completed your own tax return, it is advisable to seek professional assistance to help you through the IRS review process and even a potential litigation
Temporary availability. As life goes on, the demands on your time tend to increase. The home improvement project that you may have done yourself will be turned over to a contractor or you may choose to outsource your lawn maintenance to professionals. Taxes are another time-consuming affair that is best turned over to an expert at some point
Money. Hiring a tax advisor can cost more than buying excise tax software, but the time savings and potential for additional tax savings should also be taken into account in the calculation
Who: Tax Professional Mark Luscombe, JD, LL.M, CPA, Principal Federal Tax Analyst at Wolters Kluwer Tax & Accounting, can help you discuss these and other relative benefits of hiring a tax professional rather than using excise tax software to manage your Tax documents.
PLEASE NOTE: The content of this article is designed to provide accurate and authoritative information relating to the topic being discussed. The information is provided with the reservation that Wolters Kluwer Tax & Accounting does not provide any legal, accounting or other professional services.
Contact: To arrange an interview with Mark Luscombe or other federal and state tax experts from Wolters Kluwer Tax & Accounting on this or other tax-related topics, please contact Bart Lipinski.