Why You Shouldn’t DIY Your Tax Preparation
Business owners often get caught up in employee management, product development, marketing, etc. This means that they have very little time for tax preparation, and when the time comes, they end up doing a shoddy job. If you fail to keep the system current or are inaccurate with data entry and calculations, it will cost you quite a bit of money in the long run. Tax Armour Inc does not want you to face any liabilities due to bad tax preparation, and this is why I have put together a few points that emphasize why you shouldn’t DIY your bookkeeping and tax preparation.
Obviously, taxes are a numbers game. There’s a lot of complexity involved, and if numbers aren’t your thing, the monotony of all the math can feel overwhelming. Worse still, it can increase the likelihood that you’ll make a mistake, which can have serious consequences. Accurate tax preparation is hard, and tax requirements can change at any time without prior notice. It’s all too easy to pay too much or too little tax, miscalculate your figures, or inadvertently leave out important information.
Costly penalties and interest
The IRS is not a mistake-friendly branch of the government. When you submit your federal taxes, they expect them to be completely accurate; if they’re not, it can cost you a lot of time, hassle, energy, and cash. Miscalculating your obligations can end up hitting you in the pocket hard. Exaggerated profits can lead to higher taxes, while underestimated profits make your company look less valuable.
Do things right - Hire a professional
Many things can go wrong if you attempt to DIY your tax preparation without the required knowledge and expertise. You can overstate your tax liability or understate your refund. You can end up paying more than you should. You can end up owing more taxes when in fact, you shouldn’t. Because you want to save a few dollars, you end up losing more. You may never discover the error, and if you do, you will need to amend the tax return, which, most likely, you will end up paying a tax professional to do so. A CTEC, enrolled agent, or CPA are professionals who will prepare your taxes correctly the first time and may advise you to reduce the tax liability or increase the refunds. They know the tax rules and know how to do their research since the tax law is continuously being changed and updated.
Pricing varies from tax preparation to tax debt solution. For example, an Offer in Compromise is an offer to settle your debt for pennies on the dollar, and it can cost anywhere from $7,500 to $20,000, whereas a tax preparation can cost you anywhere between $180 to $1,800 depending on the tax forms being filed. You should at least seek an enrolled agent or a CPA in a professional. They are a little more expensive than the CTEC, but you get what you pay for.
If you are looking for a tax professional and consultant in San Jose, CA, reach out to me at Tax Armour Inc. I have a strong passion for alleviating tax debt. I negotiate installment agreements, Currently Not Collectible Status, Offer in Compromise, Lien Subordination, and other assessments that reduce liability. I have experience in appealing decisions with the IRS and the State. I offer services like tax resolution, tax preparation, tax audits IRS, accounting/bookkeeping, etc. to clients across San Jose, San Francisco, Sacramento, Fremont, Milpitas, Newark, Hayward, Union City, Oakland, San Pablo, Richmond, San Mateo, Mountain View, Santa Cruz, Morgan Hill, Gilroy, Salinas, Monterey, Dublin, Livermore, Stockton, Tracy, Modesto, Fairfield, Vallejo, Woodland, Yuba City, and the surrounding areas.
Get in touch with me today!