Preparing your own income tax return can be a task that leaves you with more questions than answers. According to a study released by the US Government’s General Accounting Office last year, most taxpayers (77% of 71 million taxpayers) believe they benefited from using a professional tax preparer.
Whether we like it or not, today’s tax laws are so complicated that filing a relatively simple return can be confusing. It is just too easy to overlook deductions and credits to which you are entitled. Even if you use a computer software program there’s no substitute for the assistance of an experienced tax professional.
The American Tax Code is huge, it is complicated and it does not seem to be getting any easier any time soon. No matter how complicated it is, you need to make sure you pay the correct amount of tax. This is where a CPA comes into their own, it is our job to know what tax allowances you can claim and which things are not allowable.
There are serious fines for underpayment of tax, for individual taxpayers, a substantial understatement is when the understatement for the year exceeds the greater of 10% of the tax required to be shown on the return, or $5,000. The penalty is 20% of the underpaid tax. You can understand how expensive it is to send in a tax return with errors on. This is exactly why you need to see an experienced Tax CPA.
The biggest mistake people make with their taxes is to ignore them and hope they will just go away, the IRS may take some time to find you but they will not just give up and forget about any tax you owe them. If you think you owe back taxes the best thing you can do is come and see us now, we can help you file your back tax paperwork and work out payment schedules with the IRS if you need help making payments.
Tax payment extensions are available, but that does not mean you have to use them every year. It is wise to keep your tax payments up to date wherever possible. You may not want to pay the IRS but whether you pay them now or later you will have to pay them.
Call the offices of David Hall today to make an appointment to discuss your tax needs:-
Phone: (435) 767-0660
Toll Free: 1-877-665-0582