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Do You Need An Income Tax Accountant?
Doug Smith

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Why would you need a tax accountant? For one thing, filing your income taxes is an aggravating, tedious and time-killing task. Many people prefer to hire a good accountant instead. The tax lawyer turns your piles of receipts and documents into a finished tax return. Others seek help through purchasing tax accounting software, although this does not entirely eliminate all the work. Many free tax filing resources are maintained on the website of the Internal Revenue Service or IRS, although that can still make filing income taxes a challenge for those not familiar with tax codes or terms.




As previously stated, many tax payers will purchase accounting software to complete their returns. It costs much less than hiring a tax attorney. However, you must have some basic knowledge of tax terms and codes to know how to respond when the software asks you for home office deductions or earned income credit information. The program prompts you for each piece of information that goes on your Form 1040 for income, social security numbers, and itemizing deductions, among others. By the time you finish the program, the time and frustration you spent may have been better spent on hiring a tax-savvy accountant to do the job for you.




The American tax laws fill many volumes, and are overly complicated and sometimes contradict themselves. The tax code continues to grow the week before the April 15 tax filing deadline is NOT the time to try to learn them! If your program doesn't have the latest updates, your return may be incomplete, wrong, or have a lower tax refund, or even a higher tax bill. Accountants study the tax laws constantly to be sure they can apply the best deductions and strategies to finding you the largest tax refund possible. That is something no software can match.




In addition to filing your annual tax return, tax accounting agencies such as H&R Block can assist you with tax planning for your personal life or business. A good accountant can lay out strategies you or your business can take in the coming year to minimize your taxable income and receive the largest refund possible, all while staying within the tax laws. One of the simplest pieces of advice you might get from a tax lawyer is to keep all of your receipts during the year, because you never know what might turn out to be a large tax deduction on your Form 1040 return.




Corporations retain teams of accountants strictly for the purpose of calculating and reducing taxes. Thousands or even millions of dollars can be saved annually by the proper deduction of business expenses, amortization, and other seemingly corporate tax loopholes. Your tax attorney should contact you frequently to review your business's financial income and procedures. Your tax professional will then make suggestions on reducing or eliminating your income tax burden, whether on personal or business returns.




Although it sounds boring, accountants, tax lawyers, and tax attorneys can be good career choices. There will always be taxes, complicated laws for taxable incomes, and different ways to interpret those codes. A good tax accountant will probably make an excellent salary, but he or she should be able to work under pressure of the April 15 income tax filing deadline.



Copyright 2008 by Doug Smith.  All Rights Reserved Worldwide.  Unauthorized Duplication Prohibited.  Not Intended to be Professional Advice.





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