How To Compete With DIY Tax Software

Posted on by LBS Tax

For some people, filing taxes solo as opposed to hiring a Tax Accountant can make little difference. When people make a modest income, lack significant assets, and do not have any unique circumstances (e.g. have undergone a divorce and custody hearing or received an inheritance), hiring a Tax Accountant might not make a huge difference. However, there remains a large group of people who need to hire a Tax Accountant. People with possible tax credits, more complex circumstances and/or more financial assets can benefit greatly from hiring a Tax Accountant as opposed to risking the consequences of filing their taxes incorrectly.

Variables That Require Expert Knowledge

There are many fiscal variables that most DIY tax software cannot accurately account for. Some common tax issues that require a Tax Accountant include:

  • Relocation from abroad via a work permit
  • Complex inheritances (e.g. a client who has inherited 25% of a small company)
  • Recent divorces and subsequent child custody rulings
  • Diverse and reasonably extensive assets (e.g. a client who has a job, has ownership in a limited liability corporation, owns mutual and/or trust funds, and buys and sells stock)
  • Tax credits, changes in income, self employment.

Tax software cannot account for everything. Instead of trying to save a few hundred dollars in tax preparation fees, Tax Accountants can save clients several times that amount in deductions as well as potential fines.

Focus on Providing a Quality Service

Many taxpayers will be fine when filing taxes solo. For example, a person who has a single job and does not own any property probably may not receive much benefit from hiring a tax professional. But if you find the tax rules confusing, have different credits as well as deductions a good tax accountant will provide you with satisfaction and peace of mind that the tax return is done correctly.

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