Tax return services are becoming increasingly popular, with many people preferring to pay a professional to prepare and file their returns on their behalf.
The popularity of tax return services is largely due to the ever-changing tax laws, which can be difficult for some people to keep up with. Not only that, but the IRS has a reputation for being particularly strict when it comes to filing returns, so many taxpayers feel more comfortable letting someone else deal with that aspect of their taxes altogether.
But before you make the decision to hire someone else to handle your taxes, there are several things you should know about tax return services. In particular:
Tax return services aren’t always cheaper than doing them yourself — In most cases, tax return service fees will range from $50-$200 depending on how complicated your situation is. However, in some instances it can be cheaper to do it yourself if you’re looking at paying a flat fee instead of an hourly rate.
They might not be able to help you if your situation is too complicated — As mentioned above, if your situation is too complicated for an accountant or CPA (Certified Public Accountant), they may decline your request for help because they can’t guarantee accurate results or advise you properly.
Tax preparers don’t have to be licensed or registered in all states, so it’s up to consumers to make sure they’re using a reputable tax professional. In most states, individuals who prepare federal and state tax returns must register with the IRS as paid preparers. Many states require registration as well and may require continuing education in order to maintain their status.
Tax return services can help you prepare your taxes whether you’re an individual or a business owner. If you have a complicated tax situation, such as rental income or investment income, then it may be worth your while to use this type of service. However, if your taxes are relatively straightforward, then it’s probably best to do them yourself.
The IRS does not endorse any specific tax preparation method or software. That means that there are no guarantees when it comes to using these services over doing your own taxes online or with software from another company. The only way to be sure that your taxes were done correctly is by reviewing them carefully before submitting them for filing with the IRS.
You’ll have to pay for the service up front. Tax return services require payment before they begin working on your taxes. This means that if the process takes longer than expected or is more complicated than originally thought, they may need more time or money from you to finish the job
You won’t be able to file an extension with them. If you file an extension by April 18th, but want to use one of these companies as well, they won’t be able to help with that because it’s too late in the season for them to do it themselves.