I have been looking at a lot of TikTok, Instagram, and other social media posts. There is a lot of information on these sites (apps). Some good, Some not so much. Never take what you see on social media sites at face value, always verify.
One of the themes is the “Fresh Start” program. This is not a new program for the IRS. In fact the solutions that are touted have been around since the 1990’s. Payment plans (installment agreements), not collectible, offer in compromise, etc. are nothing new.
The rules by which a particular solution to an issue keeps evolving. IRS tries to make interaction with them easier. They fail in big ways, but they try. The point is that if you have an issue with the IRS contact a professional to help you.
I saw this on Reddit and decided to steal it. A user asked “What are everyone’s thoughts on doing your taxes with software yourself or having a cpa do them?”
I have been asked this question many times. Mainly because I, as all tax professionals, charge a fee to prepare a return.
One of the many tax professionals had this answer: “Software is a tool used by DIY filers and by tax professionals.
The primary difference is that a tax pro should have the knowledge on what to enter in the software and whether it is allowed, which serves as a sort of check/balance system.
A DIY filer may not have that knowledge. I can’t tell you how many times I have represented clients who said, “Well, TurboActSlayer let me do it.’
The tool is only as good as the tradesman using it. If you have a relatively standard tax return (Married, W2s, kids, mortgage interest), a DIY software will serve you fine.
Software won’t look at past years returns to see why things are different this year. It won’t look two years into the future when little Hayden, Jaidan, and McKinsleigh are no longer eligible for the Child Tax Credit and tell you how to prepare accordingly. It won’t ask probing questions to find potentially more tax mitigation strategies. It won’t check your tax account quarterly to help stave off potential surprise audits/exams and tax related ID Theft. It won’t explain to McKinsleigh how working and taxes are related or won’t advise Aidain on how to maximize his ‘Hobbit Feet’ OnlyFans channel.
But, not everyone needs or wants that, and not every tax professional does those things, either. I look at paying a tax pro (who, incidentally, may be a CPA, but could also be an Enrolled Agent or attorney or uncredentialed preparer) as a sort of insurance. You get a tradesman with a better tool and more knowledge on how to maximize the effectiveness of that tool. Is that worth the extra cost? Every person’s risk tolerance is different. Some will pay it, and others will do it themselves until it is beyond their capability.
Edit: I am a tax pro, so I may have some bias. But I don’t typically target returns or clients that can easily be done on a DIY software.”
Just remember, you are paying for the tax professionals knowledge.
I have been seeing a lot of posts in Facebook, Reddit, and others with the question “What is my refund lower than ever?”
The first few questions a tax professional asks is did you receive the stimulus payment or advance child tax credit. If you have dependents and did not opt out of the advance child tax credit (ACTC) you received something.
The ACTC was an advance on the Child Tax Credit you would usually receive on a tax return. Did you miss the ADVANCE in the ACTC? It was not EXTRA money. The answer to the question is that if you have dependents and claim the Child Tax Credit, you already received some of it as an advance.
If you need a tax return prepared or are receiving notices from the IRS contact me for a review.
