In 2015, there were over 100 pages providing instructions for Form 1040.
If you’re unsure, Form 1040 is the simplest tax form. The time you take to read it while doing your income tax planning may double as you try to ensure you meet all the tax requirements.
The alternative might be leaving yourself open to an audit. However, it doesn’t necessarily have to be one or the other. Hiring a financial planner to help you create your income tax payment plan can help.
Read on to find out other reasons why you should hire a professional.
1. Tax Laws
Do you know about the changes to the tax laws that will affect the filing of your 2020 taxes? If you do, that’s great. But do you understand all of the requirements?
They can be complicated. If there is any uncertainty, you should hire someone that can assist you with tax planning.
2. Income Tax Planning Can Save Time
If you reviewed the 2020 tax laws and codes, it probably took quite a bit of time. The time you could have spent doing something to help your business or spend time with your family. Someone with tax planning experience can save you time.
3. Save Money
This may seem ironic as you’ll have to pay to hire a financial planner. However, they can catch something you miss. If this is a tax credit or deduction this can make a difference in the amount of your tax return.
4. Income Tax Lesson Plan
Hiring a professional is like having your own personal tax tutor. Not only do they assist you with your current income tax plan, but you can also learn more about your taxes by asking questions. This is much better than spending time on hold when you call the IRS to ask a question.
5. Help Prevent An Audit
No one wants to get an audit notice in the mail. A professional can help eliminate errors and ensure you don’t miss deductions. Basically, they can ensure that while filing your taxes you don’t trigger any alarms that can result in an IRS audit.
6. Long-Term Planning
Your income tax payment plan doesn’t only have to be just before tax season. You can have a financial planner advise you for the year ahead as well. Effective income tax planning can help you save money in the long run.
7. Review the Past
You don’t only have to use the expertise of a financial planner for your current income tax plan. They can also review your past returns. If you missed any deductions, you can correct thee and benefit in the process.
8. Peace of Mind
Knowing you have someone looking out for your income tax needs can give you peace of mind. A professional can review your past finances, ensure your present finances are in order and help you prepare effectively for the future.
Planning That Gives You Peace of Mind and Saves You Time
If you own a business, income tax planning should be an investment you seriously consider. This can take the hassle out of ensuring you’ve met all the income tax criteria. Doing this can help prevent being audited.
Black Diamond Financial Solutions Inc provides several financial planning services that can assist your business and your family. We can help give you peace of mind and save you time. Contact us today!