In St Louis tax preparation comes to the minds of most residents as soon as the New Year comes around. Fortunately, tax season can be almost stress-free. You need not dread it if you take a few steps and follow sensible guidelines suggested by the IRS and other experts.
Advance Preparation
Shorten the time of assembling your tax documents by being organized.
• Keep a tax file of all business expense receipts, income received, and other tax-related documents you receive during the year.
• Sort everything by category. It will save you money if the preparer does not need to sort through your paperwork for needed information.
• If all end-of-the-year income statements (W-2, 1099 etc.) do not come by January 31, contact your employer or other income source immediately.
Choose a Preparation Method
You have two options for preparing taxes—prepare them yourself or pay someone to do it. The best method to choose depends upon the complexity of your taxes. Software tax packages are good for wage earners. They are moderately priced, quick to complete, and there are some suitable free programs. Of course, you can still use a pencil and paper and follow IRS instructions for completing forms. The IRS will answer questions about tax preparation on the phone or in one of their field offices.
The IRS sponsors Free File and Free e-file so you can complete forms online and file them electronically. Free File and Free e-file software is the result of an association between the IRS and software companies. It allows electronic filing and that means you will usually receive a refund in about two weeks.
Hire a Professional Tax Preparer
Tax preparation companies are local or chains such as H&R Block and Jackson-Hewitt. Such firms’ employees vary in expertise. Some may have lawyers, CPAs, Enrolled Agents and/or certified preparers. Other companies are operated by single individuals who may or may not be credentialed. Preparer training programs are not necessarily required by smaller companies.
CPAs, tax attorneys, and certified financial planners are very expensive and you do not need their professional expertise unless you have a very complicated tax return.
Before you hire a preparer, ask some basic questions including:
• Do you have a preparer tax-identification number?
• What kind of tax preparer credentials do you have?
• What kind of tax returns do you usually prepare?
• Will you give me a price quote?
• Will you represent me in an audit?
• Are you familiar with laws of the different states where I work?
• Is the preparer available after tax season ends?
Before you accept the tax return:
• Check the return.
• Question anything you do not understand before signing it. You are responsible for the accuracy of the form after you sign it.
• Make certain the preparer has signed the form and included the preparer’s tax identification number (PTIN). The PTIN is required by law.
• Get a copy of the return. The preparer is required by law to give it to you.
By following the above suggestions, you should have no problems in chosing St Louis tax preparation companies or preparers anywhere in the country.