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All You Need to Know About Tax Preparation


All You Need to Know About Tax Preparation


As the tax filing deadline approaches, you are faced with the dilemma – should you prepare the filing yourself or hire a professional tax advisor to prepare your filing. One of the crucial factors that may influence your decision is the amount of time you need to prepare the filing yourself, especially if you are not very keen on performing complex mathematical calculations. If this is the case, the option of employing a tax preparator is your go-to solution.

Seasoned San Diego tax specialists can quickly prepare your filing, provided you supply them with all the necessary documents in due order. You, on the other hand, may spend a whole weekend doing your tax filing.

How does tax preparation work?

The procedure of preparing and filing the tax return is undertaken in principle once every year. It ends with the signing and submission of your tax return. At the very end, you will find out whether you have to pay the IRS some money for taxes or you have the right to receive a tax refund.

The most common practice involves visiting your tax consultant once or twice when tax preparation is due. This will ensure all your financial documents are in order and you have everything needed to prepare the tax return. The accountant will check their contents and make sure that the filing complies with the requirements of state and federal tax laws.

In the case of simple tax returns, people sometimes prepare and file their tax returns with the IRS  without professional assistance. However, taxpayers may use other professionals, besides accountants, such as enrolled agents, tax preparers, or attorneys, to prepare their tax returns. Regardless of the profession, these professionals must command the trust of the taxpayer.

How-does-tax-preparation-workHow long does it take for a tax preparer to do taxes?

According to data from the IRS, an average person will need 16 hours to complete the so-called Form 1040, the individual tax filing form used by 69% of all taxpayers. However, for more sophisticated and complex tax returns, tax preparation can take much more time.

The required time varies according to the complexity of your taxes, the number, the type of forms you have to file, and the tax preparation knowledge of the process.

In case you have to file a so-called 1040EZ, the process is pretty straightforward, and any taxpayer can do it himself. If you need to file a  form that seems complicated or you’re too busy to devote much time to tax preparation, a much better option is to hire a seasoned professional to perform this work on your behalf.

Taxpayers who run their own businesses need to devote much more time to tax preparation than individual taxpayers. The IRS estimates that business taxpayers spend on average no less than 24 hours on this process, out of which 13 hours are devoted to recordkeeping.

Tax preparers can work on various types of tax returns depending on the type of taxpayer, any business’s specifics, and levels of experience. The forms of filing tax preparers work on may range from an Individual Income Tax Return, Form 1040, to highly complex Corporation Income Tax Returns, Form 1120, even to interpreting complex partnership agreements.

At the end of the day, the vast majority of tax forms fall into one of two categories: forms for individual taxpayers (such as 1040) and business tax returns that may include a variety of businesses from corporations, partnerships, non-profit organizations, trusts, etc.

California law contains clear provisions stating that only attorneys, certified public accountants (CPA), enrolled agents (EA), or so-called CTEC registered tax preparers can charge a fee for preparing your taxes.

When working with a tax preparer it is highly advisable to check his legal status, since his registrations and licenses can be amended or revoked without you having received any notice.

Who are trusted San Diego specialists near me?

With so much information, data, a whole lot of math, and not enough time, it’s time to hand over your tax preparation to reliable experts. David York Tax Service boasts a team of highly qualified and dedicated pros ready to assist you with all things tax-related. Our services are available across San Diego County, so don’t hesitate to reach out today. Make filing taxes a stress-free experience – you’re in safe hands!