Whether choosing to work with a tax professional or using computer software, there are several tax preparation services that can help an individual with filing income tax returns. Certified Public Accountants (CPA) are professionals who pass a series of accounting exams and specialize in tax preparation services for individuals, small businesses, and corporations.
Tax preparation service specifically means that these professionals will aid with the writing and filing of tax return forms. The tax payer must provide the professional with all the relevant information necessary to file returns. This includes personal records, receipts, earning statements, investment records, records of charitable donations, etc. The preparer will then charge the tax payer a fee for the tax preparation services.
Some people will choose to work with their personal accountant, or CPA. Many people may also choose to work with large businesses who offer tax preparation services. H&R Block and Jackson Hewitt are two of the most popular companies to work with. These companies will offer help with preparing individual or business income tax returns. They also specialize in offering audit assistance and representation. A financial audit is when the Internal Revenue Service (IRS) closely evaluates the financial statements of an individual or business. This process is meant to ensure that an individual is not concealing any income or investments, and that a business is not engaging in embezzlement.
Companies, such as H&R Block, will aid their client in preparing for the audit by collecting all the necessary paperwork and researching pertinent issues. They may also offer representation, in which the company will deal directly with the auditor. The auditor will negotiate with the representing authority, rather than the tax payer. An audit can be a stressful time for some people, and using a tax preparation service can make this process easier. Professionals offering tax preparation service will charge a fee, unless the tax payer is eligible for free tax preparation service.
Using computer software and online programs for tax preparation services has become very popular in recent years. Turbo Tax is one of the most popular tax preparation service programs. This company offers several different versions of its program. Individuals who have simple tax returns and use the most basic IRS forms will be able to use a simple version that is sometimes free.
Turbo Tax also offers versions for small businesses, as well as a program for those who want to combine their personal and business income taxes. These programs are available for a fee. With the increase in different types of tax preparation service programs, filing income tax returns has become easier than it was. Although some people choose to file their returns on their own, a majority of people will utilize some kind of professional service.