Why You Shouldn’t DIY Tax Preparation

Author: Pinnacle 1 – Goose Creek | | Categories: Tax Filing , Tax Preparation , Tax Return

Blog by Pinnacle 1 – Goose Creek

Yes, it’s that time of year again to pour over all the paperwork with a calculator in hand. But this time, should you do it by yourself or hand it over to the professionals?

The year 2021 was challenging with many changes for this tax filing season. Moreover, your return may be more complicated than usual this year with a slightly shorter filing window. As a result, you will need to wrap up issues, including unemployment insurance claims, stimulus check income, and pandemic-driven changes in residence.

The experts at Pinnacle 1 – Goose Creek do not want you to risk an error while preparing for your taxes and face the wrath of the IRS. Therefore, we have put together a few points that emphasize why you shouldn’t DIY tax preparation.

1. You could complete your tax return incorrectly
The most common error while filing your tax return is completing it incorrectly. This could include incorrect social security numbers, misspelled names, filing status errors, math errors, and also incorrect bank account numbers for direct deposits or payments. You may not always be accurate and know that you are responsible for what’s on your tax return. But, when you make mistakes on your tax return, it can cost you dearly. So to avoid sending out inaccurate tax returns and pick a good tax preparer to help you out!

2. You may end up paying penalties and interest levied by the IRS
Most of the time, the do-it-yourself (DIY) approach doesn’t always go as planned when it comes to filing your tax returns and paying your taxes on time. Even if you think you have a simple tax situation, you might face an IRS tax penalty either for underestimating your quarterly payments, missing a tax filing deadline, or bouncing a check to the IRS. Moreover, if your tax return is prepared incorrectly, it is challenging to work with the IRS to correct it. And it could be costly in penalties and interest. To minimize your chance of either getting audited or getting a notice from the IRS, it’s best to turn everything over to the experts.

Do things right - Hire a professional!
Making mistakes can be very costly, but hiring a professional tax preparer is worth the expense. These tax professionals can provide you with experienced advice and seasoned guidance during the year on the best strategies to make smart tax-saving decisions. More importantly, tax laws can be hard to understand and have recently changed due to the pandemic, making it more difficult for you to file your own taxes. Therefore, if you want the best possible tax return refund, it may be worthwhile to hire a professional. Generally, the cost of professional tax preparation depends on the complexity of your tax return and the credentials of the professional you choose. 

If you are looking for accounting, bookkeeping, and tax preparation in Goose Creek, South Carolina, reach out to us at Pinnacle 1 – Goose Creek. We are an award-winning accounting firm and have been serving clients locally and nationwide for over twenty years. Our team of skilled professionals is helpful and knowledgeable and will guide you every step of the way. They have up-to-date knowledge about the financial industry and vast experience to help you. We offer individualized and business taxes, bookkeeping, and payroll, to fit your needs. To learn more about the services we offer, please click here. If you have a question, we’d love to hear from you. Please contact us here.