If you own a business, one of the most dreaded times of the year for you may be the tax filing days. Most people focus on their business, family, and other areas of life rather than their taxes throughout the year and then rush through things when the time comes. Rushing can result in significant mistakes, cause delays in filing, and may even invite an IRS audit.
Handling a business, whether small or big, is not an easy task. There are tons of responsibilities over you, and you may not have enough time to dedicate towards financing. This is where a tax preparer comes in. If you are looking to hire San Mateo business tax services, there are certain mistakes you should avoid.
Mistakes to avoid when choosing a tax preparer
- Hiring someone offering a bigger refund.
A tax preparer can only bring you a refund if your facts or circumstances warrant a refund unless they purposefully do not report some of your income. It is important to report your entire income and comply with taxing laws to avoid legal penalties and a possible IRS audit.
Legitimate tax preparers will never tell you that they are going to get you a big refund. However, they do guarantee that you will have to pay the least amount of federal and state income taxes possible by them.
- Wasting time before hiring a tax preparer.
It is easy to postpone tax preparation due to the complexities involved and the hours, maybe several days of time required. However, it is important to determine early whether you need a tax preparer or not to avoid last-minute delays and panic. Moreover, you can create a game plan according to your financial needs by engaging with a financial consultant on time.
- Hiring a tax preparer who charges a percentage of your refund.
A tax preparer who charges a percentage of your refund is usually there for the money. They may even not comply with the tax laws and use illegal ways to get a larger refund. Instead, go for someone who charges an hourly rate or has a flat fee on specific services. The fee should depend on how much work they have done, not how much money they have saved you.
- Not getting trusted recommendations.
When hiring someone to help you comply with the tax laws in San Mateo, it is important to consider their reputation. Get referrals from families and friends to kickstart your search for a good tax preparer. After you have made a list of the potential ones, schedule individual consultation meetings with them to discuss your particular needs.