Wayne Johnson, MBA, CFP®, AEP®, CAP®, Financial Planner
March 8, 2020
Tax season brings up a wide range of thoughts and feelings, including anxiety of what you might owe, procrastination, anticipation of a refund, fear of an IRS audit, unfairness of taxes, disorganization, etc. All of these feelings are normal.
The more complicated your tax situation is, the more concerns you most likely will have. To alleviate your fears and reduce your stress, Syverson Strege usually recommends clients hire a professional tax preparer or CPA as part of their overall financial planning strategy.
Here are five good reasons to utilize a professional tax preparer or CPA:
Avoids costly mistakes
Tax preparers and professional CPAs know which mistakes can be costly. For example, missing a tax credit or exemption could cost you significant dollars. Simple math errors and filing under the wrong status can prove to be costly as well. Hiring a professional vastly reduces the risk of mistakes. CPAs are required to take 40 hours of continuing education each year. In addition, they are constantly updated on new rules and regulations that may apply to your tax situation. In other words, your tax returns will be accurate.
Reduces your risk of being audited
Many people agree that using a professional tax preparer can reduce your risk of being audited by the IRS. For example, CPAs can identify inconsistencies in your tax returns that would signal red flags to the IRS. They are aware of the latest changes to the tax laws and can therefore provide the right advice on how to steer clear of issues that might attract unnecessary attention from the IRS.
Provides access to your tax professional if audited by the IRS
Your chances of being audited by the IRS are slim. But if you are audited, your tax professional can be your trusted point person with the IRS and available to walk you through the process. Their sound advice will be invaluable as you deal with the IRS.
Potential increases in refund or decreases in taxes you owe
Because a professional tax preparer may know about an exemption or change in tax laws that could favor your situation, you may actually save money. In other words, implementing a particular tax-savings strategy you wouldn’t have known about otherwise, could end up saving you money in the long run.
Reduces anxiety and provides peace of mind
You won’t have to doubt that your returns are prepared correctly if you hire a well-respected tax professional. Knowing that all tax angles and strategies are being considered and implemented for your benefit will ultimately give you peace of mind during each tax season.
If you have questions, call your Syverson Strege financial planner at 515-225-6000.