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The following article was published in our article directory on February 6, 2012.
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Article Category: Finances
Author Name: chickie maxwell
Something that a number of people who have a work-at-home status in their careers ask is if it is better for them to do their own taxes or leave tax preparation to an expert. There are actually a lot of people who are employed at home choose to furnish their own tax returns because doing so will allow them to get all the tax refunds without having to pay a percentage of it to a professional tax service, lawyer or accountant. On the other hand, there are work-at-home people who prefer to deal with a professional because they want everything to be correct and precise, and missing an entry by mistake can result in sanctions that people should avoid.
The answer to the question would mostly depend on how big the home operation is. If the person is an individual contractor, then it would indeed be a good savings scheme to do one's own taxes. On the other hand, if there is a small or medium-sized business operating from one's home, it would be better to leave the tax preparation to professionals. The possible consequences will still be to the disadvantage of the taxpayer - should he or she be missing something that makes it look like avoiding tax payment is being done, then the IRS would certainly implement sanctions or punishment. On the other hand, if the taxpayer neglects to file a claim that may end up giving him or her more money, than the chances of the IRS issuing a refund to the him or her are less likely.
However, if a work-at-home taxpayer decides to hire a professional, he or she should be cooperative enough to provide documentation, from receipts to records that are required to prepare the return. One cannot really expect a tax prepare to come up with excellent work if the taxpayer has missing information or did not provide complete details. A majority of legitimate tax preparers will ask to view all of the taxpayer's receipts and records. They will also ask the taxpayer a number of questions that will enable them to know the client's overall income, as well as his or her eligibility for deductions, expenses and other possible items.
It is in the interest of the taxpayer to review and double check the entire return that the tax preparation professional has finished before affixing his or her signature. It is wise to always review the entire document, take note of any entries that may be questionable , and ask them to the preparer. The taxpayer has to make sure that he or she understands all entries and are comfortable with the correctness of the return. Of course, it goes without saying that signing a a blank tax return is a big no-no. Some tax preparers may ask their clients to sign a blank return so that once they're done, they can supposedly file it already without delays. This is bad practice and a clear sign that the preparer is trying too hard to entice prospective clients.
Keywords: tax preparation
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