From the end of January to April 15th is the traditional season for getting our taxes done. Some of us procrastinate so much we have to file an extension with the IRS. Accountants, bookkeepers, and those who do tax preparation are busy. In the grand scheme of things we need to pay taxes to we can get services from our government like fire, police, and military. Still we do not need to pay more than what is our fair share.
On the television I have been seeing commercials from H&R Block. When I did a simple Google search for free tax preparation, I found quite a list of other tax preparers. The list starts with TaxAct.com, Turbo Tax, Tax Slayer, and our US Government. The offers for free tax preparation is just for the 1040EZ form. All the rest of us we have to pay.
The cost ranges for tax preparation account to the complexity of the return. Just the average Joe with wife and two children who rents their home is fairly simple. Self-employed, head of household, with a mortgage is time to sit down with a professional. If you own several properties, self-employed, then you should of have already have an accountant on retainer.
For many years I would enter almost a state of panic when it came to doing my taxes. Why? I was afraid of the dreadful word audit. It was not that I was cheating on my taxes. It was that I did want the pressure. I was afraid I was doing something wrong, and get thrown in jail for not filling out the correct form the correct way.
Then I read articles from NewsChef.com like: “Top of the list is stolen tax return-related identity theft, which has jumped from 11,010 complaints in 2005 to approximately 33,774 in 2009.” Now I start to worry about the individual who is doing my taxes. This is enough to make a person go from a mild panic to serious paranoia.
Still, being a citizen of the United States I must file an income tax report, every year. What are some of the things I can do to protect myself from identity theft? How can I know that the tax statement I have filed will meet with the IRS’s approval? What is the least amount of money do I need to spend to have my taxes done safely?
I tell you what I have learned. Some of was the hard way, and some of it was through good advice for professionals who I have known over the years.
- The bigger you changes in tax filing from one year to the next means the more likely you are going to be audited by the IRS.
- If you tax status changes very little from one year to the next, you can get tax software from H&R Block or some other established tax perparer. Then all you have to do is update the information from one year to the next.
- If you need help getting your taxes done, make sure they are a trusted, established resource. It is a temporary office, cut rate service where the biggest risk lays.
- Don’t answer emails that ask for any information to update your tax return or offers instant refund. Legit companies will never ask for personal information through unsolicited email. If you think it is legit, call the company and ask them. Or better yet go to their local office for confirmation.
Bottom-line: Tax season can be stressful, but it does not have to put us into a panic. I realized, the more work I do through out the year, with good record keeping will help the process go much smoother for me.
