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Don’ t Get a TAX Headache! Here’ s the
One of the most important things in preparing your personal taxes( if you don’ t prepare them yourself)
Is choosing an ethical and competent tax professional. Your finances can be compromised if you don’ t protect yourself. When you sign your tax return you are signing that YOU are responsible for everything claimed on the tax return. Without studying tax law all year to feel comfortable doing this, how do you protect yourself? Here are several tips:
• Check the preparer’ s qualifications. IRS has a directory of qualified preparers go to IRS. gov / chooseataxpro n RED FLAG! Your preparer has no designation( CPA, EA) and no PTIN( registered with the IRS)
• Ask about Fees and E-filing. n RED FLAG! The preparer bases their fees on a percentage of your refund – this causes the preparer to“ find” deductions to increase THEIR fees.
• Make sure the preparer is available. You should be able to contact your preparer after April 17th. Ask about office hours, or return call times. n RED FLAG! You never get a return call from your preparer after your tax return is filed.
• Review your tax return. Your preparer should review your return with you before you sign. n RED FLAG! Dropping off your tax return and picking it up without your preparer asking you questions to see if your situation has changed, or you could benefit from new tax laws.
What if you don’ t use a professional, but file your own tax return online? Most of the tax programs are designed to make tax preparation easier. However, some of the questions can be misinterpreted or you may have a question on what the information means. You can do your own tax research at IRS. GOV and use the search bar to ask your question. DO NOT USE THE INTERNET! Go directly to the source( IRS) to get the correct answer.
• What if you owe money to the IRS after you complete your own tax return? Go to IRS. GOV – on the main page there is a button called“ Pay your Tax Bill”. It will take you to a page full of information about the many ways you can pay your taxes, and now the IRS even has payment plans!
• What if you get a big refund this year? Help your financial future by using that money to:
✔ Pay off debt
✔ Start an emergency fund
✔ Start a retirement fund( after you have an emergency fund) Taxes cause many people headaches and heartaches, especially if they are done incorrectly! Use this information to help give you peace of mind.
Tracy Burnside is an Enrolled Agent( EA) with an MBA from Gannon University. If you have a tax question, send her an email at tracy. a. burnside @ gmail. com.
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