If you are thinking about using a tax relief professional, you need to know what you’re getting yourself into. This article will help you understand the risks of working with a tax relief professional and give you some tips on how to protect yourself.
In the United States, there is a large population of people who don’t have the proper paperwork to prove they’re eligible for tax relief programs. Some of these people are unaware of their options or they simply don’t want to take the time to complete the paperwork needed to apply. Unfortunately, they end up paying taxes for the entire year without even knowing it.
How to Choose a Tax Relief Professional
Choosing a tax relief professional for your company can be a stressful process. After all, you’re investing time and money into hiring a tax expert, and you need to make sure that this investment will be a wise choice. As such, you may be wondering where to turn for answers.
What to Look For in a Tax Relief Professional
People hire professional tax relief experts when they need assistance in paying their taxes. They want to find professionals who will be able to help them with their taxes because they have lots of questions. They want to find people who can work with them so they can do their taxes right. And they want to be sure that their taxes are done correctly and quickly.
Why You Need to Understand the Risks of Using a Tax Relief Professional
Tax relief is a process that is handled by a tax professional, not an accountant. The most important thing for any business owner who is using a tax pro to understand is that this person is not going to handle your taxes. This means that he or she can’t make promises or guarantees about whether you’ll owe money, or receive a refund. This person is simply going to prepare your taxes and give you the results.
The 7 Risks of Hiring a Tax Relief Professional
There’s nothing worse than a tax return that’s late. But there’s no reason you should let a mistake turn into a tax nightmare. You could hire a tax relief professional to help get you out of this mess, but the question is whether that tax relief professional knows what he or she is doing. Here are seven risks to hiring a tax relief professional:
- Filing your taxes is supposed to be simple, not complex
- If you hire a tax relief professional, you risk losing everything if you don’t have the money to pay your taxes
- Hiring a tax relief professional could cost you thousands of dollars in penalties, interest and even jail time
- Tax relief professionals can use aggressive tactics to avoid paying taxes or give false information to the IRS
- If you hire a tax relief professional, you could lose your home, car, or even your business
- Hiring a tax relief professional could cause you to miss a tax deadline and risk missing out on filing deadlines and other tax breaks
- Hiring a tax relief professional could make you ineligible for certain tax breaks, such as the Earned Income Tax Credit
5 Tips for Protecting Yourself from the Risks
- Be vigilant: Keep an eye out for suspicious activity, such as phone calls, texts or emails from people you don’t know. If something feels off, don’t ignore it.
- Understand your rights: It is important to read your financial statements and contact your consumer reporting agencies.
- Know your account: Find out the current balance in your accounts, and check the terms and conditions on any accounts you have.
- Stay connected: Consider using a password manager to help you create strong passwords and keep them secure.
- Don’t click on links: Look before clicking, especially on email links and on links found in unsolicited messages.
How do you know if your tax relief professional is right for you?
It’s important to find out if the tax relief professional you choose is a good fit, and if the work you get is done by someone who is experienced, trustworthy, and takes pride in their work. After all, when you file taxes, the last thing you want to do is deal with any problems down the line. You need a trusted partner who will make sure you don’t get caught off guard when it comes to your taxes.
In this free guide, you’ll learn how to spot red flags and find a tax relief professional who can help you save money and get a better return on your investment. Whether your business is new or well established, there are things you can look for to determine whether your tax relief professional is a good fit.
Here are a few red flags that may signal trouble
- You are already getting some type of tax relief, such as a home office deduction, or you want to claim something, but your tax relief professional doesn’t seem to know about it or won’t let you use it.
- Your tax relief professional appears to be underqualified or lacks experience in dealing with business tax situations.