When I talk to people regarding their businesses I am often asked a good question: “Why should I use a CPA? I can do it on my own .”
While it may be true that you can do it on your own, were you aware that 22 tax provisions expire at the end of this year? Are you really sure you know how they will affect you in the future?
I commented earlier this month regarding depreciation policies and the need to have one. Why? Because Internal Revenue Code §1.263(a) requires it. My guess is that if you were to get audited one of the standard questions an agent will ask will be if you have a depreciation policy. Once you answer no, your options are gone. That simple. My clients are getting their depreciation policies this week prepared to fit their company.
What about if you get audited? Who will help you then? What if you get a correspondence audit? Not worried? You may not need to be, but be aware that examining the returns from partnerships and other so-called pass-throughs will be the “top priority” of the IRS’s Small Business/Self-Employed Division over the next year and beyond, said Faris Fink, the head of the office at the AICPA National Tax Conference in Washington in November.
Finally I am sure that everyone is aware that if you prepare your own tax return that you are held to the exact same standard I am when I file for a client. Ignorance of the law will not get you out of penalties. It never works. IRS internal Revenue Manual part 20 chapter 1 section 1 (IRM 220.127.116.11.1.2) says:” Compliant self-assessment requires a taxpayer to know the rules for filing returns and paying taxes.” I know individuals who have tried the “I didn’t know that is what you meant” appeal and it fell flat on its face.
Use a CPA. You wouldn’t represent yourself in court would you? Why represent yourself in front of the most brutal and unforgiving government agency?