Nobody wants to pay taxes, but unless you want to face legal repercussions you will have to. The inevitability of taxes (and death) does not prohibit you from seeking out ways to minimize your overall tax bill to whatever extent possible. While many people have very simple tax returns that are easy to prepare and complete, some individuals have more complexity in their tax returns and decide to hire a tax professional to assist them with the preparation of their income tax returns. While this can be a wise choice, care is needed in order to select a tax professional who is ethical and takes care in preparing an income tax return properly and in accordance with the law.
What is at Stake
Hiring a quality income tax professional to take care of your taxes can help to lower your overall income tax liability and help you to save money on your income taxes. Many individuals are not fully aware of the potential deductions and credits possible. The best tax professionals will meet with you before the end of a year and help to review and advise you on possible ways to lower your income taxes such as through harvesting tax losses on your stocks and maximizing different deductions that are available to you.
A good tax professional will also monitor your income tax return and help you to avoid the risk of audit by different tax bureaus out there. There is always a risk of audit that exists, though the risk is often mitigated by not taking aggressive positions that expose you to audit risk. Further, a good professional tax preparer will prepare the documentation and support for positions you take to help to justify your tax position that you can use in case of audit and represent you if an audit occurs.
Avoiding Shady Income Tax Professionals
Some tax professionals will provide you with assurances of massive tax refunds and some will even charge an unethical and potentially illegal contingent payout that is calculated based on the amount of the tax refund that you get. It is important to avoid these shady income tax professionals as they have a vested interest in getting you a massive tax refund and reduced liability, even if it exposes you to tax liability from an audit as a result.
If the IRS or other municipalities select you for audit generally speaking, they tend to not impose penalties on errors on your tax return unless the positions were overly aggressive or seemed as if you were trying to circumvent the tax law in a duplicitous way. Using shady income tax professionals will increase your risk for penalties and interest and may end up costing you more than you would like. Tax auditors can often open older periods not protected by the statute of limitations and expose you to greater tax liability as a result.
Avoid using shady tax professionals and focus on qualified professionals who have your best interests at heart. Hopefully one that understands your local Richardson, TX tax rules. Try visiting us at https://bilskyfinancialgroup.com/ We do more than FIX tax problems, we help you PREVENT them!