Hey There!
It's tax season again for all of you entrepreneurs out there. So, let's talk about taxes. As you know, the tax code is constantly evolving. Business always need to keep up with these, or have a reputable partner doing this for you. When it comes to choosing one such person or company, price should not be the determining factor, but it IS one to consider. I recently read an article on how different the prices can vary drastically when it comes to preparing a tax return, so I thought we'd chat about that today.
What Tax Preparation Rate Should I Expect?
There are warnings that this tax season could be the worst yet in terms of complications. Some say that this is a result of people in power wanting to maintain the complexity of the system in order to require the average individual to hire some help. Regardless of the reasons, we do know that filing taxes is going to be as difficult as ever. Most people are going to be curious as to how much they are going to be required to pay out in order to get the tax preparation services that they require.
What can be Done to Combat This?
There is nothing that can be done to change the laws that govern how taxes are going to be collected. The only thing you can do is hire a tax professional who can handle different types of tax returns for a set fee. If you're using tax software or an e-file service, shop around and compare their offerings and prices. Think about how to get the biggest bang for your buck. Just because a tax software brand is older doesn't mean it's better or does more for you. When it comes to e-filing your 1099's and w-2's, look for a provider like eFile4Biz.com who will handle BOTH e-filing your forms and printing and mailing them to recipients. Always be looking for ways to maximize your tax filing dollars.
How Much Will I Have to Pay?
The answer to this question is not a simple one. There are varying amounts for various services that may be required. The average fee for filing a 1040 form, the most commonly filed form, is right around $150. This figure may sound high to some, but considering the amount of extra money that a tax professional may be able to find, it is something that can actually be a discount.
Tax Professionals Remain Busy
Savvy individuals will make sure to file their taxes as soon as possible. Tax professionals remain busy because they are seeing an uptick in the amount of people coming to see them. This is probably due to the ever-increasing complexity of the tax code. Because of the last-minute rush, it is important to meet with a tax professional as soon as possible.
When Must Payment be Made?
Some want to know when they will have to pay the fees that are necessary to get the help of a tax professional. The answer on this one varies as well. Some tax professionals require money upfront while others are okay with waiting until the tax return has come back. It is always important to ask each tax professional how they do their billing.
What About Filing for Corporations?
There are other types of entities that may need to file taxes aside from individuals. Corporations, for example, will need to file tax returns, often hundreds of them at a time. The going rate for these types of returns is higher, usually in the $500 to $600 range. This is because corporate tax returns are even more complex than individual returns.
Can all Tax Professionals Handle my Taxes?
Not necessarily. There are plenty of things that a single professional may be able to handle, but they will need to have training on the various types of tax returns and tax codes in order to file them. If a professional does not have that particular type of training, then he or she will not have the ability to make that return. As such, you should ask about what kind of services are provided in the beginning.
New Rules may be Coming Soon
There may well be new rules coming down from the IRS. Senators in Washington, D.C. have been putting pressure on the IRS to make sure that tax return fraud is cut down. This means that the IRS is going to be taking a closer look at a lot of tax returns and making sure that everything is up to par. It is going to be yet another problem that individuals have to deal with and yet another reason to consider hiring a tax professional who is trained.
I hope this post was informative. If you have comments or questions, please feel free to contact me. I'm also open to ideas for my posts. If you've got a business tax or compliance issue you'd like me to talk about, please share it with me.
Until next time!
Tommy.
Hi my name is Tommy Freese.