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	Community Accounting & Tax, LLC., Chester, Virginia, Serving Metro Richmond and Southside Virginia.
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	Do You Really Need A Professional To Do Your Taxes ?

The answer is, maybe.

If you have a W-2, no itemized deductions, no stocks nor bonds, and nothing complicated, the answer is NO. You can do it yourself, via several methods. First, you can buy one of the consumer tax programs. However, that’s overkill. The IRS allows Taxpayers with an adjusted gross income of LESS than $50,000.00 to file electronically for free. While we have many concerns about electronic filing - and don’t participate in the program ourselves, Click here to review the IRS Federal Free File (state returns are not free). Its less expensive than buying a tax program and putting it on your computer!


	If you have stocks, bonds, dividends, sale of a home, 1099-Misc, sole proprietor income, rental homes, distributions from retirement - then we believe you certainly do need a professional to prepare your income tax returns.


	File your Virginia Taxes (only) Online - Free!

Taxpayers choose each year to file their tax returns themselves or to have us prepare them. Those who choose to complete their returns without the help of a professional will typically purchase software to assist them with preparing and/or e-filing their returns or, they will find a vendor that offers these services online. They are usually motivated to prepare their returns themselves because of personal preference or because they [think they] can save money by not consulting a tax accountant. On the other hand, many taxpayers will decide to seek a professional tax accountant because:

** They don’t understand the tax code

** They are not willing to commit to the time it takes to file their return themselves

** They are afraid that they won’t take advantage of all eligible deductions and credits available under the Tax Code

** They can complete the Federal return but don’t feel comfortable with the state return or have multi-state returns

** They did it themselves last year and received notices from the IRS or state of additional tax due

** They did it themselves last year and later found they could have received a larger refund because they failed to take all allowable deductions/credits

** They did it themselves last year on their computer and still received a notice from the IRS or State that their return was incorrect - and owed additional tax, penalty and interest

Then there are those who opt for the e-file with refund anticipation loans from the Taxtime only ‘storefront’ tax mills. The attraction here is you get your refund in 48 hours or so (unless you owe Uncle Sam or the State back taxes, child support and such). This cost’s an average of 172.0% interest on your refund. We believe it hurts the people who can least afford it. We have never offered the service, nor will we. What we do offer at no charge, is direct deposit of your refund to your checking or savings account. Yes, it takes 2 to 3 weeks longer than a refund anticipation loan. However, you save hundreds of dollars! And, your personal information does not go over the Internet!

Fact is, if you have a very simple return, your cost of our doing the return for you is about $65.00. You’ll pay that for tax software alone. In the end, if you like tinkering with your computer, and have a simple return, then you will opt for either the free IRS program or buying software, and doing it yourself. If you self prepare your return, please don’t forget to save a complete copy of both your federal and state returns. Not on the hard drive of the computer, but by printing it out and saving it in a safe place. We see many new clients who didn’t save a complete paper copy of their computer filed tax returns, and received notices from the IRS or State, advising additional tax, penalty and interest was due. Without a paper copy of the return, it is difficult at best to establish if there is a genuine error, and if the tax authority is really due the additional tax, penalty and interest. Tax accountants are required to maintain client returns for five (5) years.

Lastly, a warning. There are those out there offering themselves as “tax preparers,” who have absolutely no training whatsoever. They buy an inexpensive computer and a consumer tax software package - working out of their home. These people charge an average of $50.00 for a simple return, and more, if the return is “more complicated.” By using these “gypsy” tax returns preparers, you are taking a very big risk. These unlicensed and untrained preparers don’t sign the return as professional return preparers are required to do by the IRS and state.

We see many new clients every year who have run afoul of the IRS and state tax authorities having been ‘talked into’ or unknowingly taking inappropriate tax deductions they cannot prove. If you use an unlicensed, unprofessional gypsy, beware. The $50.00 you spend may well cost you another $500.00 or $1,500.00 (or more) in additional tax, fines and penalty. One new client used a gypsy last year, and has to pay over $8,000.00 to the IRS alone. Remember, its your decision. The tax authorities will listen to your tale of woe, but you’ll still have to pay the fines and penalties, as you signed the return, and the gypsy preparer didn’t - and won’t. If you pay someone to do a return, at least make sure it’s signed and ALL the information is filled in where it says “Paid Preparer Information” !

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	© 2002-2006 Community Accounting & Tax, LLC - All Rights Reserved Our Web Site provides our clients and visiting friends with information about taxes. Do not apply this general information to your specific situation without additional details and/or professional assistance.