Tax preparation is the process of preparing tax returns, often income tax returns, often for a person other than the taxpayer, and generally for compensation. Tax preparation may be done by the taxpayer with or without the help of tax preparation software and online services. Tax preparation may also be done by a licensed professional such as an attorney, certified public accountant or enrolled agent, or by an unlicensed tax preparation business. Because United States income tax laws are considered to be complicated, many taxpayers seek outside assistance with taxes (53.5% of individual tax returns in 2016 were filed by paid preparers).[1]
Some states have licensing requirements for anyone who prepares tax returns for a fee and some for fee-based preparation of state tax returns only. Commercial tax preparation software, such as TurboTax, is widely used by individuals preparing their own tax returns. The Free File Alliance provides free tax preparation software for individuals with less than $72,000 of adjusted gross income for tax year 2020. People who make more than $72,000 can use Free File Fillable Forms, electronic versions of U.S. Internal Revenue Service (IRS) paper forms
Dear Valued Customer, I hope that this finds everyone safe and healthy. It has been an interesting and challenging year for all of us. Personally, 2021 started off tragically. My wife of 44 years, Debbie, went into hospice care and passed away on February 2nd. She was always behind me in any endeavor, and as …
2020 Letter from the Owner, Joe McMullen | McMullen Tax Masters Read More »
Where is your tax preparer? Most tax preparers only work until April 15th, because that is how it has always been. Unfortunately, we all know that things have been a little different the last two years due to COVID-19. We are here, still preparing tax returns and hope that it is extended even further! Where …
Just a quick note: The IRS has extended the deadline (from 4/15/21) to May 17th, 2021 for your 2020 Tax Returns.
This is the note we received from the National Association of Tax Preparers Advance Payments of the Premium Tax CreditIRS suspends requirement and provides guidance The American Rescue Plan Act of 2021 suspends the requirement that taxpayers increase their tax liability by all or a portion of their excess advance payments of the premium tax …
IRS Makes Changes to Advance Payments of the Premium Tax Credit Read More »
This is such a great question that so many people have asked me recently. First, ask yourself if you have the time and patience to do your own taxes. If you don’t have the time or knowledge required, hire a professional. Here are the top reasons to hire a ta professional: You’re running out of …
Should I Hire A Tax Preparer or Should I Do My Own Taxes? Read More »
Last year we were force to adapt our entire business model to keep our customers and employees safe from COVID-19. While some businesses (including our competitors) closed, we adapted to drop off only, because your taxes were still due. Either you were getting a much-needed refund, or you would face penalties if you did not …
We have seen so many clients that collected unemployment in 2020. More than we have seen in our over 35 years of tax preparation experience. This led to many people owing money because not enough taxes were withheld from their unemployment checks. I know, it doesn’t seem fair, but we don’t make the laws. Fortunately, …
Most people think of taxes only a two times a year. Everyone thinks about taxes when they receive their paycheck and notice how much is being taken out for taxes. The other time usually occurs between January and April when they file their tax returns. That is when most people call their tax preparer. The …
You Need to Think About Taxes More Than Twice a Year! Read More »
