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The following article was published in our article directory on January 27, 2012.
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Article Category: Finances
Author Name: chickie maxwell
With the tax season deadline in view, many people are considering all the available options in order for them to get past the complicated process of doing it. Tax preparation is a reporting process that can be done by the taxpayer, a tax professional, through a software, or through the internet. Here is a comparison of the four methods involved in the preparation of taxes.
Tax Professionals
Tax professionals can be classified into two: the solo and the firm practitioners. Both solo and firm practitioners can be licensed or not. Regardless of their academic merits , tax preparers can be individuals, who are trained to handle the task of preparing taxes, they can be accountants who can simultaneously do audits, and they can also be attorneys who know the legal process relating to taxes. One benefit this brings is the competence a tax preparer has in doing the job. The client or the taxpayer who seeks for their services is able to deal with an actual person where active interaction is made possible. This is helpful because the nature of the business relationship between the client and the tax preparer is customized to the former's tax situation.
One consideration when seeking the service of tax preparers is fees. A client needs to have explanation for paying a specific service. Because tax preparers have their own ways of determining pricing, potential clients are given the opportunity to choose.
Tax Software
Tax preparation software has been popular with the dawn of computers. These are different systems designed to simplify the process of filing taxes. One advantage of it is it can be purchased one time and taken anywhere. Software products are now changing to carry an intuitive quality to make its usage more convenient.
The software available for filing taxes help a lot in a way that the user only needs to enter the numbers needed and the succeeding calculation is done automatically. This means that human error in calculation is reduced thus, giving off a more accurate amount when a refund is expected.
Electronic Filing
Apart from the e-filing system developed for IRS, many vendors are offering tax preparation services online. This enables a taxpayer to file income information electronically. The common offerings of online tax filing service providers are their free and fee-based services. The free part of the e-filing service includes the basic tasks in preparing taxes. The fee-based service usually comes with an added ability for a user like making corrections to their tax returns.
In addition, e-filing reduces the time for processing all tax-related documents. A trip to the post office is not necessary and postage is no longer on the list of expenditures. E-filing also offers the opportunity to receive tax refunds faster as long as it is accepted by the IRS. If there are correction, waiting for three weeks may not at all be bad than waiting for a refund check in the mail.
One consideration though is for the taxpayer to ensure that the e-filing provider he registers under has the system protect his personal and financial information.
Keywords: tax preparation
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