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Types of Tax Services Available in the Market

Sleepless nights, sweaty palms, and anxiety attacks are common when the tax season comes knocking at the door. There are several decisions that need to be made when it comes to filing taxes properly and on time. Do you want to hire a professional tax preparer or do you want to tackle it by yourself?

In case your tax returns are quite simple and you are comfortable making all the decisions, then you can prepare the returns by yourself. However, if you have complicated tax returns or are determined to get the last ounce of deduction or credit in your hand, then it’s best to hire a tax
preparer in your location.

Choose a tax preparer whose expertise and credentials meet your requirements the best. Otherwise, you would end up investing in a tax preparer who is not qualified or experienced enough to handle your taxes and returns.

Types of Tax Services Available in the Market

Here are some of the tax services that can help you sort out your federal and state income tax returns.

1.Tax Preparation Services

Tax preparation is one of the basic types of tax services, which offer accurate and thorough completion of an individual’s tax returns to eliminate the possibility of future tax liabilities and minimize the tax returns.

If you are expecting huge tax refunds or have complex claims, it is best to opt for tax preparation services near you. Most of the time, the tax preparers detect credits, deductions, and other opportunities for saving money that are often missed by individuals who are not experts in this field and who do not work with taxes professionally. So, if you want to make the most of your tax returns, it is best to hire tax preparation services.

2. Tax Strategies

It is essential to remember that each and every financial move that we make throughout the year comes with its own tax implications. Hiring experienced tax strategists to monitor these situations and the corresponding tax consequences is an investment worth making. Organizations and individuals offering tax strategy services help you by offering strategic advice for managing the different investment portfolios that you have, such as estate planning, retirement, income, and savings. Therefore choose a tax service that provides dynamic tax strategies in compliance with state, federal, and local tax regulations.

3. Tax Audit

A tax audit takes place when the Internal Revenue Service (IRS) decides to closely scrutinize an individual’s or organization’s tax returns to verify the accuracy of the deductions and income filed. A tax audit is only scheduled when the IRS notices something out of the ordinary in your tax returns. In situations such as these, it is of great help to hire a tax audit service to represent your case in front of the IRS. An IRS tax audit can take place in three different ways, namely, mail audit, field audit, and office audit. Let us learn about them in detail:

  • Mail audits:

Irrespective of the type of audit the IRS decides to carry out, the individual or the organization under scrutiny will receive a notification via mail. The simplest form of IRS examination is the mail audit in which the auditee does not need to meet the auditor in person.

In this type of audit, the IRS asks for additional documentation to support the account of various items mentioned in your tax return. For example, if an organization or an individual claims $20,000 in charitable deductions, the IRS can request them to submit documentation to substantiate the donations and prove their authenticity. Generally, if you are able to provide proper proof of your deductions, the IRS will end the audit in your favor.

  • Office audits:

Unlike mail audits, an office audit is conducted at the local IRS office, with the auditor and auditee and coming face to face. These audits are more detailed than mail audits. So, it is best to hire tax services that offer tax audits to represent your case in front of the IRS during such an audit. In office tax audits, an audit officer generally questions the auditee to gain more information about the submitted returns. Moreover, the auditee can be asked to produce some specific documents such as bank receipts, statements, accounting books, and records.

  • Field Audits:

This is the most extensive form of IRS audit and it generally takes place at the home of the auditee or the location of his/her business. Field audits are usually conducted when the IRS are investigating more than one or two inaccurate deductions spotted on the tax return of the auditee. A field audit is very thoroughly conducted and it is best to have a tax audit expert present at the location to handle and represent your case in front of the auditors. Therefore, if you receive an audit letter from the IRS, it is best to hire a reliable provider of tax services who offers audit services and work with a licensed and enrolled tax agent who will be able to competently represent you to the authorities.

4. Tax Relief:

Tax service organizations offer tax relief services to help out struggling consumers who are unable to pay theirtaxes to the IRS. Tax relief service providers work as intermediaries between the IRS and the taxpayers. The strategies used by tax relief agents may vary according to the person’s financial status and tax burden.

However, all of them negotiate with the IRS to reach a common ground to reduce the amount owed to the IRS in the form of taxes. Therefore, if you end up owing taxes to the IRS, it is best to hire quality tax relief services to get back on a strong financial footing.

In Conclusion:

Now that you know about the different types of tax services, hire the one that you need the most to file for deductions and credits. A professional tax services firm offers expertise in various fields of tax preparation in order to cater to and meet the needs of the widest possible set of customers. So, this tax season, be sure to opt for one before filing your taxes.

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