In a world where the do-it-yourself (DIY) spirit is celebrated, it’s tempting to take on tasks that are best left to professionals. From home renovations to tax preparation, the allure of saving money and gaining a sense of accomplishment can be strong. However, when it comes to preparing your taxes, the risks often outweigh the benefits.
As you’ve moved up in the world, so have your tax obligations. What may have been a straightforward process when you were a teenager working part-time has likely become much more complex. With increased income, investments, and potential deductions, tax preparation can quickly turn into a minefield of potential errors and missed opportunities.
One of the most significant risks of DIY tax filing is the potential for costly mistakes. Even a minor error could trigger an audit, result in penalties, or lead to an overpayment. Furthermore, the tax code is no light reading; it’s nearly 4 million words long and constantly changing. Navigating this labyrinth without professional guidance can be daunting and risky.
In my 25 years of reviewing tax returns, I’ve seen a range of mistakes that could have been avoided with professional help. For instance, I’ve encountered cases where taxpayers incorrectly claimed dependents, leading to severe penalties and even criminal charges. In other situations, parents continued to claim adult children as dependents, resulting in unnecessary complications and potential fines.
Remember, signing your tax return is akin to swearing an oath that the information provided is accurate to the best of your knowledge. If the IRS discovers inaccuracies, claiming ignorance won’t protect you from penalties.
Moreover, while it might seem like you’re saving money by avoiding professional fees, the reality is that a seasoned tax preparer can often save you more. They can help identify deductions and credits you may not be aware of, ensuring you don’t pay more tax than necessary.
While the DIY spirit can serve you well in many areas of life, tax preparation is not one of them. The risks are simply too high, and the potential savings from professional assistance far outweigh the initial cost. As Benjamin Franklin once said, “An ounce of prevention is worth a pound of cure.” Don’t risk your financial health by going it alone. Trust a competent tax professional to guide you through the process and ensure your peace of mind.
JoAnna Laiscell, January 16, 2024
Reference:
Stanger, T. (2019, March 15). Can You Trust Online Do-It-Yourself Tax Prep? CR’s Evaluation Raises Questions. Consumer Reports. Retrieved January 5, 2024, from https://www.consumerreports.org/taxes/can-you-trust-online-do-it-yourself-tax-prep-cr-evaluation-raises-questions/
