How do I do my returns? Should I hire someone? Can I do it myself? Many persons find themselves confused every single year. DON’T LET THIS HAPPEN TO YOU!
Know your options.
You can hire someone using the Tax Return Preparation option. Tax return preparers (TRP) are businesses or individuals who calculate the amount owed by or to a person or business. TRPs then file the appropriate documents on the behalf of their client. This method, despite being hands-off and time conserving, has its many disadvantages. The prevailing disadvantage is expense; you wouldn’t want a newbie handling your tax return filing and experienced Certified Public Accounting (CPA) firms can be a bit costly.
The practice of e-tax return filing began in the 1980’s and spread like wildfire due to the difficulty and inefficiency of paper taxing. E-tax filing bypasses the practice of physically filing returns. This is, in essence, filing tax returns online using tax return preparation software approved by the tax authority.
Why E-file Tax Returns?
Paper returns in the US take approximately 4-6 weeks to be processed by the Internal Revenue Service (IRS). By then, many persons are charged late fees. With electronic filing, it takes roughly 1-2 days for the IRS to receive your e-file and in 14-21 days you’ll get your refund.
You can file from the comfort of your home and never see a long Post office line again. There is immediate confirmation and afterwards you can print your own copy of your tax return for personal records, and ,if you prefer ,pull up your receipt on your computer instead of having paper lying around which is eco friendly.
According to the IRS, 21% of paper returns contain errors. The percentage in e-filing is slim to none. Human beings are flawed and susceptible to error, however, e-filing programs are designed to detect and fix errors. Also, E-filing programs provide step-by-step instructions so you’ll never have to worry about being in the wrong direction.
If you qualify for e-filing you can file for free using IRS Free File or other pre-approved software.
Too often there are allegations of tax scams or “rip-offs” involving tax return preparers. E-filing eliminates second party involvement giving you privacy and peace of mind. Your data is sent directly to the Tax Authority who uses secure networks reducing the chances of it falling into the wrong hands.
The world is becoming more technologically advanced every day. The age of paper filing is no more. Choosing your tax-return filing option should be based on what you feel comfortable with. Choose the fastest, easiest method of tax return filing, i.e. electronically or take help from a reputed CPA firm in Gaithersburg, MD.