That pile of tax forms on your desk is familiar, yet also alien. You know you have to tackle it by April 18 this year (instead of the traditional April 15). About three out of five taxpayers turn to tax professionals to help fill out the forms and clear that pile from their desks.
U.S. News and World Report recently took a look at a number of times when it makes good sense to call in professional reinforcements to get your income tax return off to the Internal Revenue Service.
An accounting firm executive said there’s a general rule to determine when to call for help: "When you don't understand the questions that the teacher is asking, that's when it's time to get a tutor." After all, if you don’t understand the IRS’s questions, it’s going to be very difficult to give the agency the correct answers.
U.S. News and World Report says you should hire a pro when you’ve made a mistake on a return filed within the past three years. Call in a pro, file an amended tax return and contain the damage, the publication says.
Other examples of times to call for tax help include the following:
• A change in marital status: whether you got hitched or unhitched last year, there can be some complex tax issues involved. If you’re newly married, it makes sense to find out if a joint return makes financial sense for you and yours, for instance. And if you are headed for divorce, you might want to talk over with a professional the benefits of filing a separate return now (it can be a way of avoiding responsibility for your soon-to-be-ex’s tax liabilities).
• If you have assets in an overseas bank account: talk to an accountant or other pro about the required Report of Foreign Bank and Financial Accounts (FBAR).
If you have in the past failed to file one, this might be a case in which you do well to discuss matters with a Cleveland tax attorney; one who can not only help you get into compliance, but can also help you resolve related legal issues.
