In times of chaos, everybody seems to have a word of advice and while some are legitimate and true, a whole host of others only lead to chaos and misconceptions. What is the most chaotic time of the year? Most adults would agree it’s the time when you have to start your tax preparations and get ready for filing your tax returns. In such times, there are several misconceptions that have started to take root in the minds of tax preparers in the US. Here we look at such misconceptions and try to dispel them.
1. A Refund Is A Great News
There are loads of people who get excited by getting refunds on their taxes. While these people seem to brag about it like an achievement that needs to be appreciated, the truth is far off. A refund is your money given back to you because you had estimated a greater tax bill than you actually had. Thus a refund is actually an indication into a lack of planning. With better planning and knowledge of the latest tax law updates this refund can be saved long before.
2. Tax Return is an Outflow
Tax return fees can vary dramatically but this does not mean that it’s unfair on either party. People tend to look at tax returns as cash outflows where the cheaper option would do, but in reality with greater fees there are greater saving opportunities provided by IRS. This is important in tax preparation to look at tax returns in a larger picture and not just an outflow.
3. Filing an Extension is Bad
People have misconceptions that filing an extension is likely to have some hidden disadvantages. In reality, this is a misconception because filing your tax return is likely to give you an even better strategy to avail time and make your tax returns more efficient and correct.
To do error-free tax preparation, one needs to have adequate knowledge of tax preparation. Programs such as Annual filing season program and annual federal tax refresher course are designed to freshen up your tax preparation knowledge.The best advice is to get a skilled professional tax return preparer that has completed the Annual Filing Season Program (AFSP). The AFSP was created to ensure that taxpayers have a way of identifying return preparers that are current and up to date on for the current filing season. Preparers who complete the AFSP are required to take an Annual Federal Tax Refresher course that includes a specific curriculum provided by the IRS to ensure that return preparers are current and up to date on the latest tax laws and code updates. Additionally, preparers earn a record of completion for completing the program and are placed in a directory of tax return preparers with select qualification so that taxpayers can easily find a qualified preparer. For more information on the AFSP go to: http://www.irs.gov/Tax-Professionals/Annual-Filing-Season-Program