Tax Professionals include: - Certified Public Accountant (CPA) - Enrolled Agent (approved by the IRS to give tax advice & file tax returns) - Tax Attorneys
**H&R Block and other tax assistance organizations are not required to hire government recognized professionals to assist you. The individuals who work at such places must take a tax course, but that does not necessarily mean they are tax experts. This is not to say that H&R Block can’t be extremely helpful, but keep in mind it is more equivalent to using Turbo Tax than a CPA. The accuracy and thoroughness will completely depend on the individual who assists you.
If You Do Not Work, You May Still Have To File
You don’t have to file a tax return if you have NO income of any kind. However, even if you are not working, but you are living off the dividends of investments or a trust fund, you MUST file. Those earning are considered income by the government.
Be Careful!
Even if you use a certified professional, remember, YOU are ALWAYS & ULTIMATELY responsible for filing your taxes on time and reporting accurate information to the IRS. Even if you have a professional process your return, make sure you look over the forms before they are submitted. Review the bottom of the form to see how much you will be getting back or how much you owe. If you are not properly informed, you could miss out on getting money back, or you could be unknowingly making a very costly mistake. Even if you later report the mistake and the IRS refunds money to you, any penalties or interest payments already made will be lost.
Do Not Procrastinate!
Your 2008 Personal Tax Returns are due April 15, 2009. To file for an extension, you must fill out Form 4868 and send it in before April 15th. You will get a six month extension to file your forms but you must file by October 15th. However, when you file an extension, it is ONLY an extension to file the paperwork. If you think that you owe money, you must send in a check with the extension form for the amount that you think you may owe or you WILL incur penalties. Any monetary adjustments owed or owed to you will be evaluated once your paperwork is properly filed. You may owe interest based on any remaining monies due the IRS, but it will be minimized if you pay the estimate upfront.
This article is a brief introduction to Federal Income Taxes. If you have any questions regarding filing in general, capital gains for real estate or stock sales, paying quarterly estimated taxes, corporate tax filings, or State tax filings please consult a certified tax professional. In the meantime, Publication 17 can also help to answer many questions and concerns.
**Mike Fratamico is a Certified Public Accountant and has a MBA in Finance. He is Vice President and CFO of Prevue Pet Products in Chicago. Mike currently serves as Chairman of the Board for CASA Kane County. CASA Kane County is a non-profit volunteer organization that advocates for the best interest of abused and neglected children within the Juvenile Court System. For more information please visitwww.casakanecounty.org.
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