Tax Services for Individuals
In Phoenix, Arizona

Filing and preparing taxes during tax season is not specifically easy. While for many, it may be a seasonal practice, for others, it may be a significant source of stress. It involves a lot of aspects and can be excessive for others who are already active with their everyday hustles. 

In fact, the US tax code is a complex set of mandates and ordinances that are difficult for most people to execute. According to a CNBC article, 80 percent of people missed a step related to taxes in 2018 and it may affect their refunds.

The number of taxpayers in Arizona that are singled out by the IRS for an income tax audit is relatively small, but no one for sure wants to find themselves among those who were. Here is a comprehensive list of why you should hire a professional tax accountant in Phoenix.

• Avoid costly tax errors – Incorrectly filing your taxes can lead to costly penalties later. Tax experts are on top of current tax codes and will help you avoid fines caused by mathematical errors. Additionally, tax professionals can identify possible deductions and credits you’re not aware of. 

• Professional tax advice – Having a professional tax advisor may give you practical advice on making smart tax-saving decisions. The tax code changes each year and tax pros keep up with changes so you don’t have to. Tax accountants are also ideal for valuable assistance concerning your business plan’s financial analysis. They can also help in making sure that all your accounting procedures comply with the government rules and requirements. 

• Reduces the risk of getting audited – Factors like failing to report some income, deducting too many work expenses, suspicious math work can cause a tax return to get audited by the IRS. Penalty fees for IRS audits are hefty. In most cases, 20% of their underpaid tax should be paid as a penalty. And, if the IRS considers the underpayment as fraudulent, the penalty fee could go up to 40% of the underpaid amount.

Tax professionals are experts in the field and will help you avoid getting subjected to an audit. While audits are quite uncommon, in such an event, you can rest assured that your professional tax accountant will provide needed documents during a situation. 

• Saves time, less stress – Organizing forms and files, and doing your tax computation require long hours of work and effort. Not to mention the time you spend worrying if you’ve filed your tax return correctly. By turning over the responsibility to a professional tax expert, the time saving is obvious and the reduction in stress and worry will be immeasurable.

• Peace of mind – knowing that your taxes are filed and handled by a professional, your mind will be at peace. 

IRS Penalties You Want to Avoid

• Late filing penalty – We can get too busy at times and forget or miss the deadline of the tax filing. The failure-to-file penalty could go up to a maximum of 25% of your tax bill. If a return is over 60 days late, the amount of 435 dollars or 100 percent of the tax owed shall be paid, whichever is lesser. 

• Math errors penalty – Accountants are excellent at dealing with numbers and will most likely provide an accurate tax report. In math errors situations, the IRS is likely to require an additional amount of taxes owed plus interest accrued since the due date of the tax return.

• Mileage rates – The IRS offers two options in calculating the cost of expresses of an automobile for a business. First, the actual expenses method; and second, the standard mileage method. Taking advantage of a licensed tax professional to do the calculations will help you determine which method yields the larger deduction and greater tax benefit to you. Keeping an accurate track record of the miles you claim on your tax return is highly advised. Failure to prove your side may result in a 25% accuracy penalty on top of the additional tax and then the interest on the entire amount. 

• Home office deduction penalty – Qualifying taxpayers are eligible for the home office deduction on their tax returns. Misunderstanding such regulation will cause additional dollars as a penalty. 

• Inaccurate charity deductions – Charitable donations and contributions may result in additional tax deductions. However, if you are selected for an audit, the IRS may deny your deductions if the charitable deductions listed do not meet the IRS guidelines for a qualified donation or charity. Penalties may be imposed for the inaccuracy.

What to look for when hiring a tax preparer

Tax preparation can be complicated, but with the help of a professional tax preparer, the process can go much smoother. Tax accountants or preparers help individuals and businesses they represent to organize and file the necessary tax documents and returns. Preparing tax requires specialized knowledge, outstanding organizational skills, and a solid code of ethics. 

Hiring a tax preparer or a tax advisor would mean sharing details about everything from your personal info, income, bank accounts, and even your social security number. So, it is very important that you choose a tax professional that can be trusted and meets the standard guidelines and regulations by the IRS that regulate tax preparers on what they can do and what they should do.

Tips for Choosing a Tax Preparer by the IRS

• Check the Preparer’s Qualifications
• Check the Preparer’s History
• Ask about Service Fees
• Ask about E-File
• Make Sure the Preparer is Available
• Provide Records and Receipts
• Never Sign a Blank Return
• Review Before Signing
• Ensure the Preparer Signs and Includes Their PTIN
• Report Abusive Tax Preparers to the IRS