Why You Shouldn’t Attempt DIY Tax Preparation

Author: IBM Tax Services | | Categories: Business Tax Preparation , Individual Tax Preparation , Tax Planning , Tax Preparation Firm


DIY or do-it-yourself tax preparation is an excellent test of your knowledge and an opportunity to save on the expenses you would incur with a specialist. However, as the DIY craze catches on and with more information about different tax preparation methods readily available on the internet, many believe almost all taxation issues can be solved swiftly and economically if you are willing to put in the work. People even think that complex problems involving the IRS can be handled by themselves. 

If you’re preparing your taxes and plan on filing them on your own, you have a lot to consider before the final submission. To give you an idea of the challenges you could face by preparing your taxes yourself, the experts at IBM Tax Services have explained why you shouldn’t attempt DIY tax preparation.

1. You could make avoidable mistakes  
Self-preparation of tax returns leaves you open to easily preventable mistakes like misfiling or failing to account for expenses, missing out on refunds you deserve, and failing to account for tax credits. Errors on your tax returns are hard to amend and leave you vulnerable to an audit from the IRS that could have been avoided with the simple act of seeking timely professional help.

2. You may end up paying higher penalties 
Apart from mistakes, attempting to self-tackle your tax returns can lead to you paying higher taxes due to penalties. For example, DIY tax preparation often causes oversights that lead individuals to miss out on tax credits that have the potential to lower tax liability, leaving them unable to utilize the benefits of refundable and non-refundable credits efficiently.

3. You could waste both time and money
Fixing poorly prepared tax returns is a task that is complex and generally necessitates paying a professional to amend. As a result, the decision to attempt DIY tax preparation when done without proper knowledge of tax codes often leads to a waste of your valuable time and resources that could be better spent on other business pursuits. 

Do things right - Hire a professional
Suppose you are attempting to prepare your tax returns by yourself. In that case, while certification and licensing are not required, being detail-oriented, having excellent communication skills, and being computer savvy is advantageous. You also need to truly understand tax codes, as well as personal and business financial management skills.

On the other hand, choosing a competent professional to handle your accounts and taxes truly frees you up. They understand precisely how to help you and the right way to navigate tax issues successfully. The experience and knowledge they possess enable them to recognize problem areas and add essential information that clients generally overlook. Most importantly, professional tax resolution specialists advise clients to take specific steps or suggest courses of action that help their tax situation for years to come. 

When seeking expert tax services, remember that their efforts will impact your finances. As a result, do not go for the cheapest option. This is because they could lack the necessary experience, which can be detrimental to your overall situation. If cost is a primary concern when hiring a tax resolution specialist, it is advisable to shop around for quotes and find professional tax services that you can easily afford. 

For a reliable tax preparation firm for individual and small businesses in Springfield, Virginia, reach out to IBM Tax Services. We possess high achievement licenses such as IRS Enrolled Agent (EA) and Certified Public Accountant (CPA), and our services are designed to offer you more value while doing business with us. We help save you money, time, and energy by providing an effortless and easy way to prepare your taxes. We offer business and personal tax services, including tax preparation, IRS audit and tax resolution, tax planning, tax advice, and business tax minimization.

To learn more about what we do at IBM Tax Servicesplease click here. If you have questions about tax issues, get in touch with us by clicking here.  

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