Today, we live in the information age. Anything, or almost anything you need to know can be found with a couple Googles, Yahoos, or Bings. So I'll give it to you straight -- about 80-85% of the general public will never need to hire a Certified Public Accountant. If the only tax documents you receive at the end of January are a W-2, your mortgage interest statement, a 1099-INT from your bank, and you have a couple charitable receipts, you probably don't need to hire a CPA. In fact, TurboTax or H&R Block have phone apps that you can use for a nominal fee.
So, when do you need to hire a CPA? If you have income outside of your W-2, or if you're not a W-2 at all. In fact, in you receive a 1099 for services, rental income, or royalties, you probably need to hire a CPA. If you receive a Consolidated 1099 from your broker, such as Charles Schwab, you probably need to hire a CPA. If you own a business, you DEFINITELY need to hire a CPA. If you get a nasty letter from the IRS, you DEFINITELY need to hire a CPA.
Why, you may ask? CPAs have to undergo 150 hours plus pass a grueling four-part exam before they can call themselves CPAs and market themselves to the public. Compare that with the three-week prep course at the national preparation centers. CPAs understand the nuances between entity types, and they have the accounting know-how to clean up books, and how to fill out numerous tax forms correctly. CPAs can come up with proactive, tax-saving strategies before the tax year end to minimize your liability, and maximize your savings.
If hiring a CPA sounds scary to you, I understand. We can get over your fears together. Call Mark Conner, CPA today at (469) 320-1260 and we'll diagnose and treat what tax problems ail you.