Whether you are a Traditionalist, Baby Boomer, or a member of Generation X or Y. Many believe that doing their own taxes will save them money. If you have a very simple return with no deductions, then sure, filing is easy. Not real common, as there is always something going on (i.e. taking a night class could earn Educational Credits, withdrawing on an IRA or 401K after leaving an employer that didn't work out. Not knowing if you will be charged a penalty for early withdrawals. Or things get more complicated when you have kids, a house, business deductions, itemized deductions, stocks, bonds and other complicated financial transactions, doing a return yourself is almost never a good idea.) The income tax code contains 1.4 million words and no software purchased by the average middle-income taxpayer can identify which avenue to take you down. If anyone that has experienced this problem can relate. Taxpayers that try to save a buck and self-prepare, spend 5.4 billion hours each year trying to complete their own taxes. Not to scare anyone but tax audits are on the rise. In 2016 the total number of individual tax audits topped 1 million for the first time since 1999. According to the IRS that number will likely increase in the years to come. The IRS announced plans to add more than 2,000 positions to its audit force this year.
Currently, 1 in 107 returns are audited for those making over $100,000.00 and 1 in 63 returns are audited for those making less than $100,000.00. Money is not saved when doing your own taxes. The refund facts clearly show that $1,492 is the average refund for self-filers and $1,789 is the average refund for taxpayers using a tax professional. Hiring a tax professional not only saves you countless hours but will also save you hundreds of dollars. Contact us today!
