Tax Expert Discusses Tax Professionals and Tax Software

Some of you may still be deciding whether to hire a tax professional or purchase tax preparation software. In this informative video, (one part of a series that came from my appearance on the Midday Sunday Fox 11 with host Tony Valdez program), I offer the following tax help tips:

  • When tax preparation software works
  • Know when it’s time to hire a tax professional
  • When it’s time to hire a tax resolution specialist

(Below the video, are the three important points to know about tax preparation in general.)

Tax Preparation Software – Not Necessary in all Cases

In my estimation, if you have a simple return, tax software is just fine to use. However, if you want to save a few bucks and file for free, the IRS has created Free File. Tax preparation software is limited so if you don’t know the answers to the questions it asks, the program won’t provide the IRS tax help you need. Here are a few subjects where tax software may not be beneficial:

  • Interest
  • Small business: Sole proprietorship or DBA (Schedule C)
  • Mortgage interest
  • Property taxes

Tax Professionals Are a Good Investment

Taxpayers with more complicated returns should consider investing in the services of a tax professional to prepare them. However, it is important to know the qualifications, competencies and specialties of the tax professional you are entrusting your financial matters to before you hire them. So you will need to do your homework on the person or firm you want to employ. Check out my recent post: Seven Tips on How to Choose a Tax Professional for guidance.

When to Hire Tax Resolution Specialists

A general rule of thumb: if your tax debt is over $20,000, or you are involved in an IRS audit, you should hire the services of a tax professional who is expert in tax resolution and has a breadth of audit experience to limit client exposure. Don’t be misled by slick advertisements from firms that offer “pennies on the dollar” services, referring to the Offer in Compromise Program (OIC). While more people than ever will qualify for the OIC due to 2012 relaxed IRS regulations, not everyone will qualify. Note: only about 34% of the Offers received were accepted by the IRS.

Reputable tax resolution experts will put clients through a rigorous in-depth interview to find out if they are a good candidate. Not all firms do an in depth screening. If you don’t qualify for the OIC, reputable experts will look for suitable alternatives and select an IRS payment plan that helps resolve your tax troubles for good.

It’s important to know who you are entrusting your financial matters to. Make sure when you contact a certified tax resolution specialist, certified tax audit specialist or tax attorney they have resolved cases like yours and have the credentials to back it up.

Check out other tax help videos on the Tax Resolution Services YouTube Channel!

More Tax Help, IRS News and Tax Relief Tips:

  1. Michael Rozbruch Interviewed in Opportunist Magazine
  2. Delinquent and Unfiled Tax Returns? 8 Steps to Resolving Them
  3. Tax Resolution Expert-Five Reasons to Hire One
  4. Tax Relief Weekly News Round Up
  5. IRS Offers Tax Help Tips-Worker Classification

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