There are several services that a tax counselor may provide, regardless of whether you are filing your taxes for the first time or have done so in the past. They may range from preparing and filing your tax returns to minimizing your tax liability or defending your tax return in an IRS audit.
Prepare tax returns
During the tax season, it’s essential to prepare tax returns correctly. You may have to hire professional Wichita Tax Advisors to assist you with the process. To cut costs and shorten the process of doing your taxes, there are several things you may do on your own. These tips can help you file your return and avoid penalties.
When filing your taxes, you must provide information on all your dependents. It includes children under 19 years of age and any adults who are disabled. Additionally, you will need to provide your social security number. The IRS uses these numbers to determine whether you owe money or qualify for a refund. Provide these numbers to avoid being fined.
Ask about their credentials if you intend to engage a professional to handle your taxes. You can also use the IRS FreeFile software to prepare your taxes. The software uses the latest encryption technology to protect your information.
Minimize tax liability
Having a tax advisor at your disposal can help you minimize your tax bill or make it seem less like a bill. For instance, an accountant can help you claim dependent care credits. And as a bonus, they might also give you some tax advice.
A tax advisor can also help you minimize your tax bill by recommending a tax-saving scheme that may be the right tax advice for high income earners like yourself. For example, a self-employed person may be eligible for a tax filing election to claim lower compensation tax rates. Before choosing a new company endeavor, it is a good idea to speak with a tax professional.
Tax planning is a year-round endeavor. The best results can be achieved with careful planning throughout the year.
Help with inheritance issues
Having a tax advisor in your corner can be a great way to ensure you’re on the right track. Not only can they help you decide if the inheritance will come in immediately, but they can also help you calculate the estimated value of the assets you’ll be inheriting.
Aside from the tax implications, inheriting assets can also introduce various complications, from paperwork to legal issues. You may also need to revisit your estate plan to ensure that your heirs are on the right track. A financial advisor can also help you identify the most significant blunders you might make with your inherited money.
The most important thing to do when you’re inheriting money is to get organized. You’ll want to keep track of your expenses for at least a month to ensure you don’t squander your newfound wealth.
Charitable giving
Developing a charitable giving strategy with the help of a tax advisor is an excellent way to ensure that your philanthropic efforts are both practical and tax-advantageous. You may develop a workable strategy to maximize your contributions and minimize your tax liability by taking a few easy actions.
The first step is to discuss your giving plans with a tax professional. You’ll want to determine how much you can give, how much tax you’ll save, and whether you can get an immediate tax deduction. Consider a donor-advised fund (DAF), private foundation, or other specialized charitable vehicles if you haven’t already.
Donor-advised funds allow you to significantly contribute to a charity in a single year and receive a tax deduction today. You’ll also receive the benefit of the tax-free growth for your contribution.
Defend your return in an IRS audit
Defending your return in an IRS audit is a task that you need to take seriously. Many tax professionals can help you to fight your audit. You can also file an appeal if you do not like the findings.
The first step to defending your return in an IRS audit is to prepare all the necessary documentation. You need to have originals and copies. Make sure you have copies of all bank statements, receipts, and other required documents. You should also keep records of all your expenses and charitable contributions.
When the audit is complete, you will receive a computer-generated audit report. It will include your findings and any adjustments you need to make to your tax return. You can appeal this report, but you will have to prove that the results were by the U.S. Tax Code.
