By financen | January 3, 2013 - 4:16 pm - Posted in IRS, Laws, Tax

It is a fact that millions of taxpayers in USA are losing millions of dollars to the government because of erroneously prepared tax returns. This is mainly because of the ignorance on their part, or because of the ignorance or negligence of the professionals they have paid to prepare their tax return.

Tax

Tax

This incidence of ignorance has increased to such a magnitude that the IRS is forced to take action. From 2013, anyone who prepares tax returns for a fee, unless he is an attorney, CPA or enrolled agency, they have to be certified by the IRS. They will have to pass an IRS competency examination and a background check, before the certificate is issued to them.

Preparing your own income taxes is not at all that difficult as your tax professional might want you to think it like. There are many advanced tax preparation softwares available that has made preparing taxes so easy. You do not need any knowledge of tax laws to understand the process. This holds particularly true with the Turbo Tax Home and Business Tax preparation software, which has now gotten much better in the recent times. As it is not that expensive, it is virtually just as easy and effective to use this tax software as it will be used by a professional tax preparer.

There are many benefits of preparing taxes on your own. You do not need to disclose your sensitive personal information to any other person. It will reduce the risk of your personal information being compromised. Your never know how much your personal information is safe after leaving from the doorstep of your tax preparer. The IRS has found a huge increase in taxpayer identity theft in the last couple of years. That’s why they are always advising to consult with honest tax accountants with whom your personal information is safe and secure.

You can actually save a lot of money when you prepare your taxes on your own. Hiring an accountant can be quite costly and tax preparation fees can range from $300 and upwards for an average tax return with a Schedule A. When you file taxes on your own, you will have full control over it. You can take as much time to prepare your own taxes and do your own research to ensure optimum results.

It will also motivate you to look at your own finances and as you immerse yourself in the process, you gain more knowledge about tax matters and money management issues.

More information:

http://www.irs.gov/

http://en.wikipedia.org/wiki/Tax_law

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This entry was posted on Thursday, January 3rd, 2013 at 4:16 pm and is filed under IRS, Laws, Tax. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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