How A Tax Accountant Can Help You

Everyone has to pay taxes, and no one really wants to. Sadly, the only certainties in life are death and taxes, and you certainly don’t want to make doing your own taxes seem like a life or death situation. As such, many people and businesses can benefit from a tax accountant.

A tax accountant is a specialized accountant whose area of expertise is within the realm of all things taxes. Preparing them, interpreting them, and helping you make sense of the many codes and laws and regulations is what they’ve devoted their lives to doing, and as such, hiring a tax accountant may be the one thing preventing you from crying in the corner on April 15th.



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When should you hire a tax accountant? There are many situations wherein the services of a tax accountant might come in handy. For the layman, this includes not having enough time or the desire to do your own taxes; your taxes are too complicated and you want a seasoned professional to do them for you so as to prevent errors; and finally, you want to receive as much money as possible in your refund.

For most individuals, a company such as H&R Block or Jackson Hewitt offers affordable tax services designed to help you make sense of your taxes while reducing the chance of errors. How much you pay is directly related to the complexity of your taxes and how many forms you would need to fill out to accurately file your taxes. You can always hire an independent accountant, but you’ll probably end up paying more, as they’re typically used by those with incredibly complex tax situations or by businesses.

Tax accounting is also suggested for those with rather complex financial portfolios, such as those who invest in the stock market, own lots of real estate, or own a business. A tax accountant is also recommended for those who have found themselves in trouble with the IRS due to back taxes, fraud, and other illicit activities.

If you happen to find yourself in such a situation, a Certified Public Accountant (CPA), Enrolled Agent, or tax lawyer would be your ideal bet, as they are specially certified and educated beyond a four or five-year education in accounting. If you choose a CPA, however, you should make sure that their specialty is taxes, as CPAs can be specialized in a wide variety of accounting practices. An Enrolled Agent is a tax accountant that has undergone testing and certification from the IRS itself, making them your best choice for tax situations that have proven to be rather complex.

Tax accounting is an important aspect of the accounting industry, and when choosing a tax accountant you should always do plenty of research to ensure the individual you choose is well-educated and experienced in the field. When you take your taxes to your tax professional, however, you must have some knowledge of your own situation in order to reduce the chance of any mistakes occurring.

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Posted on May 29, 2012 at 9:00 AM