Some people cannot live without an artisan-brewed $5 cup of coffee but feel that a dry cleaner is too expensive.
They own a huge televisioin, yet watch old TV shows on their smartphone.
Closer to home, they complain about their taxes and use a free software system to file because having their return prepared by a firm that specializes in it is "too costly".
Can you keep your own books and file your own taxes? Absolutely. Should you?
Yes. You read that right. Tax tips from the IRS.
Actually, though, once I sorted through the email and the assorted videos that they had included, my professional opinion is that they had put together an easy-to-understand tool that many small businesses and owners could use in conjunction with a tax professional to understand many of the most common deductions.
One of the most interesting pieces in their email was the IRS’ take on the home office deduction. The facts in this situation are pretty telling and I understand why the IRS is looking to simplify the process – nearly 3.4 million business owners deducted nearly 10 billion dollars within the structure of the so-called “home office deduction” in 2014 and to say the language was “fuzzy” is putting it mildly. The new rules that the IRS put in place last year were expected to make it a great deal easier on the small business owner when it comes to paperwork and documentation of a home office and honestly, the jury is still out on that.
What I really wanted to talk about this week was my brother-in-law. He is a pretty brainy guy, and figured out how to become a journeyman electrician with on the job training and self-study. He did his own taxes on Turbotax. Now why would he do this when his sister-in-law was a Tax Accountant? Well, it could be because I'm family and he didn't want me knowing his financial information. But.....knowing my brother-in-law, its more likely that he knew he was smart. He figured, "How hard can it be?" It was an ug-ug caveman, pound on the chest, "I can do it myself with this cheap little software and not have to pay anyone to do it for me"...mentality.
Now the sad part of this story is that he inadvertently overstated his Employee Business Deductions, then was audited for 2013 & 2014, didn't have his backup records, and now owes the IRS 30k. He did have to hire me to help him review the audit and setup a payment plan.
Can you keep your own books and file your own taxes? Absolutely! Should you do it yourself? No way. Getting a professional to help, even after the fiscal year is gone is still far better than going solo. Not only can you save yourself hours of time and money, you can keep the IRS honest.
With that in mind, since every taxpayer knows that the first quarter of the year is our busiest season, I want to encourage you to schedule an appointment here to see if there are any surprises – like free money – in your bookkeeping or return. If this could help you, click here to go ahead and schedule an appointment to save you some serious money and keep you out of the tax doghouse.
No matter how bad your books, profit, or paperwork, chances are that Tax Intervention can clear the path for you and save you a tremendous amount of heartache and money within your tax liabilities. Take the time, take the opportunity, and call us at 602-687-9768 – we’ll make that pain go away!