Nothing will raise a person’s blood pressure as much as an IRS audit. In all likelihood, you have a small chance of experiencing an IRS audit in your lifetime. But if you’re one of the unlucky ones who receive the notification letter, it’s best to have all your financial ducks in a row.
Even if you’ve done your taxes for years, you can make mistakes. Tax services ensure that you do not make mistakes that will cost you more down the road. Ultimately, paying a tax preparation service to do your tax resolution can save money later on.
By the time you finish reading this article, you will understand the massive benefits of hiring tax resolution services.
Why Hire Tax Services?
When you hire a tax service, you’re hiring more than just a person to do your taxes. You’re hiring a group of professionals working in the accounting services department. These individuals make tax resolution, tax planning, and all things money for their business.
They know the IRS rules, and they ensure that your money does its job for you.
Avoid Mistakes
In recent years, experts estimate that up to 80 percent of taxpayers made a mistake that cost them extra money when filing their taxes. A qualified professional CPA and tax preparer will understand the costly mistakes you can avoid.
For example, you can lose a great deal of money if you miss an exemption or tax credit. Basic math errors can put you in the wrong tax status as well, costing you more.
While you might catch these errors when you file on your own, professional tax resolution services have a higher chance of catching them. CPAs make taxes their business, earning 40 hours of continuing education every year.
Furthermore, CPAs receive the most recent updates on new regulations and rules that apply to their client’s tax situations. You can trust a CPA and professional accounting service to yield accurate tax returns.
Reduce Audit Risk
Because tax planning services understand best how to file taxes, they also know how to reduce the red flags that would lead to an audit. When the IRS decides who to audit, they look for inconsistencies in tax returns.
Professional tax services will help you steer clear of an audit by making your return look as clean and consistent as possible. Tax resolution services also understand the latest changes to tax laws. They can give you the best advice for how to avoid issues that will attract IRS attention.
Have Access to a Professional in an Audit
If you are audited, you will have a point person when you hire a tax resolution service. Instead of walking through the audit alone, your tax planning services will walk you through the audit process.
Furthermore, your accounting service can give you sound advice that will help you work smoothly with the IRS.
Save Money
A tax planning service can ultimately save you money. You have a higher chance of receiving a higher refund or paying less in taxes when you have a professional helping you file taxes and navigate tax laws.
Tax services will help you implement a tax savings strategy. Such a strategy will help you save money in the long run.
Lower Stress
Whenever you have to prepare big financial documents for either yourself or your business, your stress level goes up. Hiring a group of professionals who prepare taxes for a living will no doubt reduce your stress. You can rest at night knowing that tax professionals who do taxes every day are taking care of you and your business.
What’s New in 2023
Each year the tax laws change to some degree. If you do not stay abreast of those changes, you will lose money. You may end up paying more on your taxes than you need to, or you will end up with a smaller refund.
A professional accounting service will know about these changes and apply them to your 2022 tax filings. Here are some of the changes.
- No more above-line charitable deductions
- An expansion on those who qualify for the premium tax credit
- Reduced Child Tax Credit, Earned Income Tax Credit, and Child and Dependent Care Credit
- Potential smaller refunds than in 2022 due to no Economic Impact Payments
- Eligibility rule change for a clean vehicle tax credit
Individual Filing Changes
These are just the general changes for everyone filing their taxes. There are also specific changes to both the individual filing taxes and businesses filing taxes. Here are the basic areas that are changing for individuals:
- An increase in standard deductions for both individuals and married couples
- An increase in alternative minimum tax exemptions
- Changes to how medical expenses qualify for medical expense deduction
- Changes to deductible requirements for High Deductible Health Plans
- Changes to Medical Savings Account qualifications
- A new definition for self-only coverage
- New requirements for “high deductible health plan” for family coverage
- New AGI limit for deductible medical expenses
- New maximum deduction for long-term care premiums
- Increased foreign-earned income exclusion
- Increased thresholds for long-term capital gains and dividends
- The increased exclusion amount for estate and gift taxes
Tax accountants and tax planning services understand the specifics of these changes. They can explain them specifically to you so you can fully understand why your refund or tax bill looks different this year.
Business Filing Changes
Like individuals, businesses can also expect a few changes in their filing requirements. Here are the basic changes businesses can expect when they file in 2023:
- Increased standard mileage rates
- Increased Section 178 expense deduction
- New bonus depreciation regulations
- New qualified business income deduction amounts
- Changes to research and development tax credit
- Extension on work opportunity tax credit
- Increase in the dollar amount of average wages for employee health insurance expenses
- New regulations regarding business meals and entertainment expenses
- New fringe benefits for employer-provided transportation
All of these changes can ultimately impact the way you run your business. A tax resolution service can help you save money by advising you on all of these elements.
Tax Services and More
When you hire tax services, you hire more than just a person who can file your taxes. Tax resolution services often come with accounting and payroll services. These financial professionals can help you will the major financial parts of your business, allowing you to focus on the services you’re providing.
Are you looking for someone to help you with your business or individual finances? If so, contact us today. Our professionals are ready to help you with all your financial needs in the greater Charlotte area.