Tax Preparation Fees Deduction

Some people rather complete the tax return themselves as opposed to having a professional tax preparer do the job for them. Most individuals are not aware that tax preparation fees can be deducted during the year in which the return is prepared. How much is your time worth to you? Would it make sense to have someone else do the work for you if those fees can be deducted? Not to mention maintaining your sanity due to the new tax laws and changes. If you decide to have a tax professional prepare your return, finding a good one is important. Most tax professionals are honest and provide impeccable service; however, there are some preparers that can cause quite significant financial and legal problems for tax payers, such as filing false income tax returns. The IRS published Topic 254 specifically in regards to choosing a tax preparer: ? Be wary of tax return preparers who claim they can obtain larger refunds than others. ? Avoid tax return preparers who base their fees on a percentage of the refund. ? Ensure you use a preparer with a preparer tax identification number (PTIN). Paid tax return preparers must have a preparer tax identification number to prepare all or substantially all of a tax return. ? Use a reputable tax professional who furnishes his PTIN, signs the tax return, and provides a copy of the return to you (as required). ? Consider whether the individual or firm will be around months or years after the return has been filed, to answer questions about the preparation of the tax return. ? Check the person's credentials. Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collection and appeals. Other tax return preparers may only represent taxpayers for audits of returns they actually prepared (IRS, 2014). While one may think that they are saving money in doing their own return, they really are not. If you are a person that chooses to have a professional take care of your tax return, use the above steps suggested in aiding your decision-making process of who you will trust with your personal information. AllRight Consulting & Tax, LLC