Why Go To A CPA Rather Than Do Your Own Tax Return?

 

It's not smart to be "Penny Wise and Dollar Foolish" comes to mind as an answer, but our Case Story is a prime example of why you should rely on the knowledge and expertise of a professional to handle your tax returns.

We all try to save money here and there by doing projects ourselves. Experience, and trial and error, often teaches us that some tasks are best left to the Pros.

Federal and state tax laws are very complex and ever-changing. Decisions you make throughout the year affect your tax status. Very often our services help our clients save money -- not just when it comes time to file your return -- but throughout the year when you are making various financial decisions such as selling/buying a home, opening a business, dealing with a divorce or filing for tuition assistance.

A CPA:

  • Has more thorough knowledge of tax laws and which expenditures are deductible

  • Has attended seminars throughout the year relating to tax planning and minimizing the tax you pay on an annual basis to the government

  • Can assist you with tax compliance including avoidance of unnecessary penalties

  • Is available to you on a day-to-day basis and can assist you with:

    • Any questions you may have related to your tax situations

    • Personal financial planning

    • Starting up a business

    • Software systems

    • Representation before federal and state tax authorities

    • Monetary cash flow and budgeting

    • Developing an investment philosophy

Case Story

In 2000 I met with a woman who lived with her 11 year old son and had been preparing her own personal tax returns. She was not sure if she wanted to continue preparing her own returns or have a professional prepare them.

She was concerned about saving tax preparation fees.

Prior to reviewing her 1999 information, we requested a copy of her 1998 tax return and immediately realized she had made a few mistakes.

We prepared Amended 1998 returns for her and she received refunds for that year in the amount of $2,889.

She then asked us to prepare her 1999 return. She had filed an extension and paid close to $7,000 with her extension since this was the amount she felt she would owe for the 1999 tax year.

After discussing her situation, and determining her allowable deductions, we determined she was entitled to a refund of approximately $2,500.

Our tax preparation fee for these services was only $400.

Back To Top