Tax Preparation - General

[samrw3]

So it is that time of the year again to start thinking about preparing taxes. I start this thread in January because I know many people jump into preparing their taxes as soon as their W2s arrive.

First of all let me say something that has slightly annoyed me for a long time. Just because someone says they are a CPA does NOT mean they know how to prepare your taxes. For those among you who do not know the tax section of the CPA exam is a fairly minor part of the test. Let me assure you after passing the CPA exam that I only knew a little more about taxes then I did before the exam. What I remember about it now years later is even less.

Tax preparation is a specialty in accounting. Not all accountants - even CPA's know how to prepare taxes. If you asked me for tax advice I would say you are talking to the wrong person. I might be able to offer some generic advice that an "average" person might not know but I would not be able to prepare anything but a simple return. Guess what if accountant you are talking to tells you something different be skeptical. Most accountants I know do not know how to prepare taxes. I again repeat it is a accounting specialty.

No if my taxes were more complicated I would look for a Certified Tax Preparer and/or someone on IRS list [link later]. I would also look for someone that has knowledge and years of experience in the fields I needed - such as investment income, housing purchases and sells, alternative income [1099 contractor type income] or such things as UBER(etc) driver, babysitter, nanny, etc Or any unusual deductions or income sources.

So next time someone tells you they can prepare your taxes because they are a CPA your reply should be - so what how many years experience in this part of tax preparation do you have?

IRS link about useful tips for tax preparation
https://www.irs.gov/newsroom/things-to- ... x-preparer

#2 has another link to enrolled IRS Agents

Rant over

[wayfriend]

Good to know. Personally, I rely on my psychic to do my taxes, as they seem to know what to put down. This will always be a good idea, thank goodness.

[Linna Heartbooger]

Oh, wayfriend!

Thanks fer just bringing up the topic, Sam.
My income is scattered among many tutoring clients - lots of whom pay by check, (I ask for that so I have a record) but sometimes one doesn't.
I often dread preparing taxes and avoid it till the last minute.

I was telling myself I was going to try to be more consistent about weekly record-keeping this year.
(New Year's Resolutions - bingo!)
And maybe try to work on 3 months' of last years' records in Jan, 3 months' in Feb, etc.

[Cord Hurn]

So next time someone tells you they can prepare your taxes because they are a CPA your reply should be - so what how many years experience in this part of tax preparation do you have?

IRS link about useful tips for tax preparation
https://www.irs.gov/newsroom/things-to- ... x-preparer

#2 has another link to enrolled IRS Agents

My taxes are usually not too complicated, and since I usually go for the high withholding, I am quick to file the taxes as soon as I get my w2s, so that I can get the refunds quickly. I appreciate your advice all the same, as it might come in handy some time, Sam. And I didn't know about tax preparation being a specialty among CPAs rather than a general skill, so I appreciate your knowledge on this!

[Skyweir]

Good to know. Personally, I rely on my psychic to do my taxes, as they seem to know what to put down. This will always be a good idea, thank goodness.

Hahahaha omg that was brilliant lol

You sir, are a legend ... bows ... lol

Sam my son worked in 50 US states and his taxes have proven a complete nightmare. We gave up and he contacted US HR&Block and they have been worse. I dont know if he will ever get his dues.

Such a complicated system.

[Avatar]

Our tax system here, especially for individuals (as opposed to companies) is pretty simple. They make it as easy as possible for you to do.

I do my taxes online, and it doesn't take me longer than 10 minutes a year.

All I do is log in, check that the relevant details from my employer have been automatically populated, fill in any additional amounts (like retirement annuities I've paid into, or interest income accrued etc.) and submit.

I automatically get an immediate get a provisional return based on whatever I entered, then they check everything and send me confirmation that the provisional return was correct, or notify me if anything changed, then I get my rebate a few weeks later.

It's pretty streamlined.

--A

[Icarus Unfallen]

Simple and easy has its drawbacks.

The ultimate simple tax form is two lines.

• 1. What did you earn last year?
  2. Send it in.

I will continue to fill out forms that take a little thought and computation, thanks.

[Avatar]

Not seeing the drawback here...

--A

[Skyweir]

Me either .. its all done online here too. Its several pages and its linked to all the data the government collects from businesses re your taxes ..

Its been a long time coming but takes all the angst out.

[Linna Heartbooger]

Not seeing the drawback here...

--A

What was meant was that the simplest possible version would be, "1. How much did you earn last year? 2. Send it ALL in."

Glad we don't live in an age or a place where that is the way things go...

[Skyweir]

But why not? Seems like a great way to go? Insufficient granularity?

The H&R block dude Nate has is completely hopeless. Paying him to do the leg work ourselves. Not greatly impressed.

[Avatar]

No, no, I get it, the point was the "send it ALL."

In other words, just give the government all your money.



--A

[deer of the dawn]

Ours are crazy. We have jobs that get paid on two different continents, and own property on two different continents, and someone is always working on their degree. We farm ours out to someone who has an idea how to sort it.

[Skyweir]

Seems sound .. with complexities like that I would too

Ohhhh it was a joke lol

one of my many flaws, Im too literal

Haha

[Linna Heartbooger]

...Ohhhh it was a joke lol

one of my many flaws, Im too literal

Haha

I have this problem myself at times...

...I mean, if there's any risk that someone's -not- making a joke, take them seriously, right?

(otoh, whenever we see that avatar, pretty much... we can assume there will be a joke/pun/irony, etc.)

Anyway... I got off the topic of taxes.
Sorry to hear your son's experience with U.S. taxes has been so wretched...
Has he been working within the 50 states for a year, or a number of years?

[Skyweir]

Just the one year lovely Linna

Now hes in Texas .. and thats much easier.

[High Lord Tolkien]

One of the reasons I voted for Trump was because he held up a large index card and said this is all you should need to files your taxes.....
Somehow that got lost in the shuffle.
Or the entrenched US tax law machine is invincible, which is more likely.


Thanks for that post samrw3. I always wonder if doing our own taxes was making us miss getting more of a refund. I would have assumed that going to a CPA was all I needed.

[Ur Dead]

The congress and executive branch should be required to help people
to do the person taxes. They wrote the damm thing they should do
thew form for people so there isn't a mistake made.

[SoulBiter]

Finished my taxes..... will be paying this year for the first time in a long time.

Oh and for anyone that thinks those that have significant income don't pay their fair share in taxes....

[Orlion]

Finished my taxes..... will be paying this year for the first time in a long time.

Oh and for anyone that thinks those that have significant income don't pay their fair share in taxes....

We might differ on our definition of "significant income"