Can’t I just do my own Taxes??
Can’t I Just Do my Own Taxes?
Maybe. But should you?
According to the IRS, the average person spends 13 hours on individual tax return preparation and up to 24 hours on business tax return preparation. And that was BEFORE they passed the NEW tax laws that went into effect last year. Can you think of anything else you’d like to do with that time? I imagine you can!
Quick question! Do you clean your own house, wash your car, mow your lawn, change your oil? A lot of people do, but a lot of people choose to outsource these tasks, freeing more time for them to focus on more important things – like family or business. Tax preparation is similar. By trusting a professional to take on this task for even a simple return, you are freeing up your time as well as easing any stress that thoughts of the IRS may bring on!
Each year, Congress implements or changes dozens of tax regulations, any of which could cost you or save you in taxes. Another big roll-out of changes and extenders was passed last month. As an Enrolled Agent, I complete 50-100 hours of Continuing Education each year to keep up with it all!
Hiring a tax and financial professional will save you money, save you time, and save you stress.
To be honest, maybe a fourth of our clients have fairly simple returns. They could probably figure out how to do prepare their returns on their own, but the fact is: they don’t want to, and they don’t have to. They feel more comfortable having my firm prepare their tax returns, and their peace of mind is worth much more than the fees we charge!
About half of our clients have somewhat complex tax situations or something is new or has changed from previous year, requiring different treatment on their tax return. Some of these clients might be able to figure it out on their own with enough time and effort, but they prefer to make better use of their own time and trust a professional instead.
The other fourth have fairly difficult situations – perhaps self-employment, rental, and/or investment income. They could spend hours and hours studying tax law and current year changes and attempt to properly prepare their returns, possibly successfully, possibly not, but they have chosen not to. Some of our clients say they feel more confident that the IRS will accept their returns as filed with the signature of an Enrolled Agent on the return. Statistics show that professionally prepared returns are audited less than self-prepared returns. Others know that we are going to get their taxes lower than they could on their own.
The MAJORITY of people I talk to who have been doing their own taxes are at least somewhat worried that they’ve been doing it wrong.
The bottom line: how much is your time and peace of mind worth?
Debbie Evans is an Enrolled Agent, a federally-licensed tax practitioner, based in NW Houston. www.evanstaxco.com www.fb.me/evanstaxco
The Fine Print
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. IRS Circular 230 Notice: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in the entries in this blog (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
