Tax season is just around the corner, which means taxpayers will need to decide on whether to file their annual returns with a tax professional, go it alone, or use a tax preparation software to help them file. Taxpayers are often attracted to the idea of using a tax software like TurboTax to file their taxes, as the process seems cheap and easy to use. In reality, however, filing mistakes are rarely cheap and almost never easy to deal with.
When you decide what route to take when filing your returns this season, keep in mind a tax prep software – like TurboTax – is only as dependable as the person that enters your tax information. Taxpayers can easily misunderstand the obscure and complex tax code. And despite the obscurity of certain tax regulations, the IRS leaves no room for error. This is particularly true in 2019, as the IRS has all but promised to crack down on taxpayers who have failed to report their earnings in compliance with the tax code. Working with a licensed CPA like the ones on Happy Tax’s team of skilled professionals is the best way to make sure your tax season goes off without a hitch.
Potential Pitfalls to Using DIY Tax Preparation Software
In basic terms, when you file taxes through TurboTax you rely almost entirely on your own accuracy and efficiency. So, before going at it alone this tax season, make sure to familiarize yourself with the tax code’s grey areas. After all, you’re the person entering the relevant tax information into the software program, and ultimately you’re the one accountable. The inherent risk of error that comes with DIY tax prep software is concerning in-and-of itself, but that’s not the only potential pitfall to filing on your own.
TurboTax allows users to make relatively complex tax filings even despite a relatively high user error risk. For example, cryptocurrency-holding taxpayers can use its software for filing, but accuracy is determined by whether the individual filer filled the proper information into the correct fields while using the tax software. If you are unfamiliar with how to claim your assets, then you may want to consider working with a professional rather than struggling through the process of doing it yourself.
DIY Tax Returns Are Not Worth the Risk
Tax prep software can be risky for taxpayers, as the IRS does not simply ignore filing mistakes. The IRS has taken an aggressive stance against certain taxpayers who have failed to comply with applicable tax regulations. The IRS is famously intolerant of noncompliance, and if you end up on the wrong side of an audit after using a DIY tax preparation program you may find yourself paying substantial fines and penalties for a simple error or omission.
Even if you made a mistake in good faith, the IRS is know well-known for its empathy or understanding. The agency won’t go easy on you just because you didn’t get the assistance you actually needed when filing your returns. As a result, many taxpayers have come around to the understanding that DIY tax preparation software just isn’t worth the risk.
Regardless of the high user error risk associated with using DIY tax prep software like TurboTax, it is still popular and appealing to taxpayers. This is true for a couple of reasons: it can be done online, it’s advertised as “hassle free,” and it can be economical. Tax software fees are lower than fees associated with going through a tax preparation agency. But the cost of using TurboTax is high compared to the scant amount of help the tax software actually provides. Thus, when comparing the potential costs of self-filing with the benefits of getting good tax help, that “small fee” turns into a very large tax bill.
Happy Tax Offers Taxpayers a Great Deal
Especially following the change in tax law that just came down in 2019, an increasing number of taxpayers will need the expertise of an experienced CPA to avoid a visit from the IRS. This is particularly true for investors who trade high amounts of cryptocurrency in the virtual market. Skip the hassle this tax season and avoid an audit by hiring a CPA. While it may seem more expensive than using TurboTax, a CPA can help you manage your assets proactively.
Although hiring any CPA is safer than using a tax software, the average CPA is probably not very well-schooled in modern tax issues, such as cryptocurrency tax policies. Therefore, if you have virtual assets or any other special financial situation that affects your tax return, you should plan on using a tax preparation company that specifically focuses on the tax help you need.
Happy Tax is the first nationwide tax agency retains a specialized team of CPA’s who are highly trained and skilled in cryptocurrency tax compliance, regulations, and accounting. If you need help deciphering IRS regulations or reducing your tax liability, the skilled CPAs at Happy Tax offer a wide variety of tax-prep and accounting assistance. They have the skills and experience necessary to provide taxpayers with an opportunity to proactively manage their tax liability, ultimately returning the control to the taxpayer.
Happy Tax provides their clients with a much more robust service than an off-the-shelf product like TurboTax or any other tax prep software can offer. In addition to helping taxpayers file their returns, Happy Tax also ensures taxpayers are able to manage their finances in the future in a manner that works with existing tax laws. Happy Tax boasts more industry experience in cryptocurrency tax preparation than any other agency in the nation, and in the event of an audit, Happy Tax offers their clients 100% free audit assistance and accuracy guarantees. This, as well as year round tax support, makes Happy Tax one of the best deals out there for taxpayers this year.