Tax season is here. If you’re like most people, you’ve spent the past year fretting about what your tax burden will be. But have you consulted with a tax advisor?
The right tax advisor can help take the stress out of filing by helping you understand how to prepare for taxes this year.
And what some of your long-term considerations are, including retirement, estate planning, charitable donations, etc. Read on to find out why it’s important to hire the right tax advisor this year!
The Right Tax Advisor Can Be a Good Investment
A well-known adage in the financial industry is “the financial advisor is the most expensive optional service.” In reality, it’s not an optional service. A tax advisor is someone who can use their professional expertise to help you understand your situation. By consulting with a trusted tax advisor, you can take the guesswork out of financial planning.
By asking the right questions, you can determine whether you can maximize your income tax deductions, how to minimize your taxes through several strategies, and how to optimize your charitable donations. As we approach the end of the tax year, it’s good to know what you can expect from the tax system.
You May Read: How to Prepare for an IRS Tax Audit
The Right Tax Advisor Helps You Stay Legal
Before you hire a tax advisor, you need to be sure that they’re legally qualified. If your tax advisor is unlicensed, you could put yourself at risk by allowing them to sign your tax returns. In many states, this can open you up to costly fines, or worse, criminal prosecution. Read up on the requirements for your state to make sure your tax advisor is qualified.
You May Read: Guide to Taxability of Trust in India
The Right Tax Advisor Helps You Make Wise Tax Decisions
Tax advisors are well-versed in all facets of taxes, including your various tax deductions and credits. You might be eligible for several credits that could help your budget or increase your bottom line. A good tax advisor will provide you with a comprehensive understanding of these credits, as well as offer advice on your best option for claiming them.
You May Read: Addressing IRS Tax Liens
The Right Tax Advisor Helps You Avoid Costly Mistakes
Just because we procrastinate about filing taxes doesn’t mean there aren’t many things to worry about. Do you have all the correct forms? If you did, your return is already in the mail. However, that’s not the case for the 13% of taxpayers who end up having errors on their tax returns – the mistakes can be the most costly, including owing taxes, facing penalties, and even jail time.
By law, the IRS can audit you, and even if your return is correct and you don’t owe the IRS money, you may still have to pay what you owe. But hiring an expert can help you avoid these situations altogether by taking care of the most critical aspects of preparing taxes, including which forms to file, what forms to choose, and how to get your return in the mail.
It’s time to pay some much-deserved respect to your tax advisor, especially if you’re not prepared for the tax season. Don’t make this year’s tax filing stressful. Don’t assume you need to hire an accountant, and instead call your tax advisor and discuss your current situation.
By consulting with your tax advisor, you can ensure you’re doing everything possible to make the best possible filing for your case while giving your tax situation plenty of room for future growth.
You May Read: Benefits of Hiring an Attorney