Every business or individual that earns an income has a civic duty to pay taxes, but doing so is also a requirement punishable by law when violated. If you do not file your tax returns and the tax agencies or authorities learn about it, you could face dire consequences, including being sent to jail. To avoid being in such scary situations, it is important to ensure that your tax returns are filed the right way and in good time.
When it is time to file your tax returns, you have two options: to file the returns yourself or to hire a tax accountant to do it for you. Though you're free to use any method you like, using a tax accountant is generally the best route to take when you're faced with a complex financial situation.
Here's a look at some situations when it is best to hire a tax accountant to file your tax returns.
- When you haven't filed your taxes for several years. If you have not being filing your tax returns for years, whether intentionally or unintentionally, and the tax people have not yet caught up with you, you should thank your lucky stars. Filing all your late returns at a go can be a burdensome task, and you will need someone who knows how to factor in applicable fines and waivers. Given the complexity of the job, it is best to let a tax accountant remit your tax returns.
- When you want to amend your returns. Revising tax returns that you filed before because you made some major errors is something that will attract the eye of the tax agencies. Generally speaking, you will be required to amend your tax returns if the errors you made significantly alter your tax liability. So, if you are going to have the errors rectified, make sure the job is done right. Rather than run the risk of making another erroneous filing, just ask a certified tax accountant to make the amendments on your behalf.
- When you have had significant life changes. A major life change like buying a new house, getting married or divorced, or setting up your own business can lead to a major overhaul in your financial situation. A tax accountant can help you easily integrate these changes when you are remitting your taxes. You may only use the accountant for the tax season you are experiencing these changes.
You don't just need a tax accountant when you are encountering difficulties with your tax returns, but essentially any time you want.