Tag Archives: Tax preparation

Connecting With Tax Experts Via Video Conference

Tax preparation help at the library

Tax preparation help at the library (Photo credit: Newton Free Library)

Filing your income taxes is one of those necessary evils that nobody looks forward to. It’s a time consuming, highly detailed process that typically requires several hours of your attention. Luckily, in today’s digital world, filing your taxes doesn’t have to be such a headache. Thanks to advances in technology, you can now work with an accountant to file your taxes from the comfort of your own home. There are a couple of different options for electronic filing that help you to save time and money when you’re doing your income taxes.

Virtual accounting

Let’s face it: we’re all busy and sometimes we just don’t have the time to sit through an hours-long appointment with a tax preparer. When you add in the time spent commuting across town and finding parking, in-person meetings can really start to add up. A number of firms out there that now offer virtual income tax preparation. Some even provide online drop off service, so that you can simply send all of your tax documents in electronically without ever setting foot in a physical office. Nothing is more convenient than that.

You can either choose to work with a large tax preparation service like H&R Block, or an accountant in your area that offers virtual tax preparation services. It’s simply a personal choice based on your comfort level and preferences. Either route you choose, it’s likely you will need to have some face time with your accountant. This can be done in a few different ways. The most common way to connect is through video conferencing that’s done via the web. Some accountants will also connect with you over the phone or through a chat feature that is offered on their website.

Scheduling time to talk via video conference, phone, or live chat ensures that your taxes will be prepared according to your needs and preferences. Generally, filing your income taxes virtually requires a simple conversation at the beginning of the process in order to hammer out necessary details before your accountant gets down to the nitty-gritty of doing your taxes. You then converse by email or phone if there are questions during the process or after the return has been prepared.

Tax preparation software

An estimated 81% of people in the United States filed their taxes electronically last year. While virtual accountants are starting to become more prevalent, it’s likely that the bulk of these individuals used tax preparation services to simplify the filing process. Tax preparation software has seen a surge in popularity over the past decade, with the development of popular programs like TurboTax by Intuit which allow you to complete the filing process online from start to finish.

The program’s popularity is largely attributed to its convenience. TurboTax provides an inexpensive, easy to follow, and convenient solution for filing your income taxes. You can simply download the software or purchase it at a nearby store, run it on your computer and begin entering information from your W-2s and other tax forms. It simplifies the deduction process by taking you step by step through common (and uncommon) tax deductions. Generally, the software helps to maximize your return because it covers all the bases with tax deductions.

If you don’t finish doing your taxes on TurboTax in one sitting, you can always come back to them. The program saves your progress online or on your computer, so you can simply pick up where you left off. Once you’ve completed your tax returns, you can file with the click of a button and opt to receive your refund electronically, or via paper check in the mail. You can also pay your taxes electronically if you end up owing money. It’s a highly convenient solution with little margin for error, and a great choice if you are not particularly confident in your skills when you’re filing taxes on paper.

Thanks to today’s technology, there are a few great ways to minimize the hassle of filing your income taxes, including Intercall’s virtual events and other tech options. If you would like to explore a more convenient solution for filing, look into options for virtual accounting or consider purchasing tax preparation software to simplify the process. Tax software will save you a lot of time and potential frustration!

The 5 Biggest Differences Between Tax Preparers And Tax Attorneys

Money

There’s an accounting joke (yes, they exist) that goes like this:

Q: What is a CPA?

A: It’s someone who solves a problem you didn’t know you had in a way you don’t understand.

Even if that joke doesn’t make you laugh, it does contain an interesting bit about the necessity of a tax professional.  The IRS certainly isn’t your friend, but it also isn’t your enemy. It is an organization operating on a mind-numbing system of complexities, the kind most people just aren’t cut out to navigate. The truth is, if you have a business of any size, you need professional help with your taxes. This comes in the form of tax preparers, enrolled agents, CPAs and tax attorneys.

If you’re as confused by the line-up as me, here’s a little clarity on the biggest differences between the bottom and top of the totem pole.

 

1.     Education:

Tax preparers are trained in the general structure of tax returns. The majority of preparers are educated by whatever franchise they work at (H&R Block, Jackson Hewitt, Liberty Tax Service). Independent preparers may attend tax preparer courses, but no formal training is needed to start a practice.

Tax attorneys must obtain a specialized law degree.  Beyond the basic degree, many tax attorneys obtain a Master of Laws degree in taxation as well as a mandatory Juris Doctor degree. In addition to this rigorous education, specialized courses are required covering advanced topics in business taxation. Many tax attorneys also have experience as certified public accountants.

 2.     Certification:

Anyone can become a tax preparer. On Jan. 18, 2013, the District Court put a stop to IRS requirements for registered tax return preparers to complete competency testing or secure continuing education. In fact, all it takes to offer the public service of tax preparation is the acquisition of a preparer tax identification number (PTIN), which costs all of $64.25.

Tax attorneys must pass the state bar.  After completing the years-long process of law school, tax attorneys must pass the bar exam of whichever state they wish to practice in.

3.     What they can do for you:

Tax preparers are capable of assisting you with basic, straightforward tax returns. If you have no special needs or complications involved in your taxes then a tax preparer is a good call. Whatever choice you make, be sure to ask about the full extent of your tax professional’s capabilities.

Tax attorneys can navigate your tax needs at every possible level. If you run a business and require assistance with complicated tax matters, or need year-round accounting, the seasoned tax attorney is your best bet.  They’ll keep you from getting in trouble with the IRS by guiding you through your finances before tax season and/or representing you in front of the U.S. Tax Court if that’s necessary.

4.     Who should hire them: 

Tax preparers are appropriate help for anyone with an ordinary tax structure.  The ideal client of a tax preparer is an individual with run-of-the-mill tax needs who forgoes the option to fill out taxes themselves. A small business without complicated tax structure can use them also, but it is advisable to seek a more experienced professional. It’s worth noting that chain tax services like H&R Block, Jackson Hewitt, or Liberty Tax Service employ people with varying levels of experience, and it’s a good idea to ask if any CPAs are employed there. If the answer is yes, request to work with them.

Tax attorneys are the choice for anyone with intricate tax needs, or issues with the IRS. If you get audited by the IRS or owe an excessive amount of money ($10,000 or more) you should seek the help of a tax attorney. It’s a good to be proactive and hire a tax attorney for management of a more involved account where a traditional accountant will not suffice. This would include businesses with payroll, international business or estate planning. One option is to turn to a company like Burkett, Burkett and Burkett that staffs experienced CPAs and tax attorneys. These kinds of firms benefit from the shared experience of a group.

 5.     What they will cost:

Tax preparers charge in a number of different ways, but are generally affordable. From independent preparers to franchise services, methods of billing range from flat fees to hourly and scaled fees by level of complexity. The average 2012 price for H&R Block was $192 per return where Liberty Tax Service averaged $173.

Tax attorneys are costly.  We all know that hiring a lawyer is going to cost and a tax lawyer is no exception. You will more than likely be charged an hourly rate and can expect to see them ranging from a few hundred dollars to $1,000 or more per hour.  This is obviously what puts such an emphasis on hiring the right kind of professional. If you don’t require complicated tax services, you may be able to get by with a tax preparer or certified public accountant. However, don’t make the mistake of cutting corners in a situation where potential consequence so greatly outweighs the savings.

Important Tax Filing Tips

Legal research

Legal research (Photo credit: gwilmore (I HATE THE NEW LAYOUT!))

Between January 1 and the end of the first month of the year, most people will find themselves with a variety of tax forms showing up in the mail. From W-2s to financial aid documents for school, just keeping track of all of the information can be a difficult task in and of itself. It isn’t difficult to understand why people often put off filing their taxes until the very last minute, but the job does not have to be as frustrating as most of us let it become. In fact, a lot of people would probably be pleasantly surprised to find out just how easy and convenient filing taxes can be if they follow a few simple guidelines.

Tips For Filing Taxes

Filing taxes isn’t a fun time for many people. Accountants and people who love numbers might have fun with it at first, but even they get bored with it after awhile. It can be hard to stay focused and file your taxes correctly if you aren’t sure of what you are doing. No one wants to pay someone a fortune to help them with their tax paperwork, either, so it can be hard to figure out where to go. Here are some helpful tips that can get you through this tax season and help you into next season, as well.

-Make sure that you pay all of your back taxes or anything that you owe. It might seem like you can just wait until the money comes around again, but the more returns you file with an outstanding balance, the higher your penalties and interest will go.

-If you use online programs, check and double check them for yourself. If your taxes are too complicated to do manually, use two programs to ensure that they both arrive at the same refund or amount owed. It’s important to make sure that the forms are accurate.

-Don’t file online if you haven’t filed other years of taxes. Your return will get flagged in the system and the IRS actually won’t let you file it if you have outstanding returns. Just print it out, mail it in, and wait.

-Use free file programs when you can. Choose companies that are reputable and that actually have free e-filing. They shouldn’t come up with hidden charges or wait until the end to tell you that it’s only free if you do this or that. Just find what’s free. That’s it.

-If you need tax help, ask now instead of later. Getting ahead of the game can make it easier for you to get back on track. Ask for the help that you need with filing so that you can get your taxes in order and get more out of your returns. There’s no shame in asking for help.

Importance Of Taxes

Make sure that you put these tips to work for filing your taxes this year, no matter what you are dealing with. It’s important to stay on top of things and get the help that you need out of your tax services, no matter what you have in mind. Use the resources that are available because they make taxes much less intimidating and can be helpful in keeping you on track. That’s the least that you deserve when it comes to your taxes, no matter what your situation might be.

The Community Manager of www.MyReviewsNow.net website, Stephanie Frasco, wrote this post about filing taxes.

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Top Tax Scams To Avoid With Turbo Tax

TaxAct

Top Tax Scams To Avoid With Turbo Tax 2013

Using Turbo Tax 2013 is a good way to avoid tax scams in the first place, seeing as how you can e-file your paperwork with confidence that it will go directly to the IRS. However, there are people who will try to catch you in a scam this year, so you need to know what to watch out for. You should use www.TurboTax.com to gather information about filing your taxes correctly, in a safe manner, so these scams do not affect you.

Paying taxes is required for both citizens and...

Paying taxes is required for both citizens and non-citizens. (Photo credit: Wikipedia)

  1. Email Scams
    Even if you have already used Turbo Tax 2013 and www.TurboTax.com to file your taxes, you could get an email saying that you are going to be given a second tax return. The email will look official, even down to the IRS logo, and it will state that you just need to resubmit your information to get the extra money. Do not respond to this email, because the information will really be used for identify theft.
  2. Tax Preparers
    If you decide not to use Turbo Tax 2013 and www.TurboTax.com, you might have to hire a tax preparer to file your taxes for you. Be very careful about what papers you sign. Some preparers will have you sign over your entire return so that they get to keep it instead of you, and, since you signed the documents, this is totally legal.
  3. Fake Charities
    You can claim all of the money that you give to charity as a tax write-off when you file with Turbo Tax 2013. However, make sure that you are not donating to a fake charity, which will simply steal your money as you attempt to save on your taxes.
  4. Grant Scams
    After you file with Turbo Tax 2013, you might get a call from a fake IRS agent, telling you that you need to provide you bank account into to get a grant. This is a scam to steal money directly from the bank.

Protect yourself this year. Learn all that you can about scams, and then use www.TurboTax.com to avoid them. With a little research, you can protect your identity and your money.

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The Benefits Of Filing Your Taxes With TurboTax Or TaxBrain

turbotax

Filing Your Taxes With TurboTax 2013 Or TaxBrain

If you have previously filed your taxes by going to a CPA, you really need to look into online software like TurboTax 2013 or TaxBrain. You will find that there are a number of advantages to using a software program that a CPA cannot provide. In fact, in the modern day, more and more Canadians are starting to use preparation software because it gives them the experience that they desire.

TurboTax

TurboTax (Photo credit: MrGuilt)

No CPA Fees
To start with, TurboTax 2013 and TaxBrain are not going to charge you fees just to do your taxes. Even software that is not free is often less expensive than hiring someone to do it for you, and free software is the best deal of all. If you are tired of the cost of a CPA meaning that your return is not as big as you wanted it to be, these programs are the ideal solution.

Simple Layouts
Both TurboTax 2013 and TaxBrain are better than getting the paperwork yourself because they are much easier to understand. They were created with very basic structures. Instead of having to figure out what to input, you are generally asked a series of questions. As long as you answer them, your information will then be copied over to the forms for the government. You do not need to have any experience, and you certainly do not need a degree in tax law.

Saving as You Go
Another benefit of TurboTax 2013 or TaxBrain is that you can save your progress as you go. If you want to start your taxes tonight, you do not have to finish them tonight. You can simply save what you have done to your account. The next time that you log on, all of your information will still be intact. You could even work on the taxes for just fifteen minutes a day, breaking the whole process up so that it is not nearly so overwhelming. Furthermore, this protects all of the time that you have put in if your computer crashes, as long as you save periodically while you work.

Filing for Free
Finally, the major benefit of a program like TurboTax 2013 or TaxBrain is that you can electronically file all of your paperwork with the government. In many cases, this is entirely free. It does not even cost you the postage that it would take to mail the documents in if you had printed them off and filled them out. Furthermore, electronic filing is incredibly fast, so you can get your return as soon as possible. This is one of the most secure ways to send in the paperwork, and you never have to worry about all of the documents getting lost in transit.

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