Avoiding Uncle Sam | Pay Little to No Taxes
Most people who file taxes are going to utilize free software online and you most likely received your money owed to you very quickly. However, once your financial situation strengthens, it may be best to start consulting an Accountant or CPA.
The reason why is when you file your taxes on your own, it shows as “self-prepared.” Even though I am competent enough to file my own taxes, this caused the IRS to flag my return, which delayed my payments by 5 months!
You may be thinking, well, at least you received interest during that time…False! You only start accruing interest on your tax return 45 days after filing date (April 17th this year). This is because taxes are not due until filing time and even though I filed early, the IRS does not start paying interest after the filing date.
Not only did I not receive interest the entire time my return was in limbo, but all of the interest that the IRS pays you is taxable!
So, if you are starting to buy your first home, make investments, and are unsure whether or not you should use a tax professional. Remember this real-life example that defines the saying, “You get what you pay for.”
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Joshua Krafchick, CRPC©, EA