You have probably heard the phrase “Only two things are certain: death and taxes.”
We happen to agree. No matter what, each year you need to file your tax return regardless if you’re expecting to owe or receive a refund. Sometimes an online service works for simple returns, but how do you know when it’s time to switch over to using a local CPA? We’ve outlined a few signs to consider when weighing your filing options.
Multiple Sources of Income
Having a simple W2 is pretty straight forward when it comes to reporting income. But if you have multiple sources that could be from freelance work, rental income, unemployment compensation, investment dividends, 401k withdrawal, and others, you may want to bring in a professional to sort out how best to report your earnings to the IRS.
A Big Life Change
As we know, life changes can come in the blink of an eye and turn your financial world upside down. Whether it’s divorce, retirement, having children, getting married, or another event, you’ll want to have someone on your side looking out for your financial wellbeing.
Starting a Business
Before making any big moves about starting a business, you will definitely want to seek financial advice beforehand. There are many things to consider such as the legal structure (sole proprietorship, partnership, LLC, corporation, etc.), your EIN, payroll taxes, etc. Knowing the upfront and ongoing costs is essential before diving head first into running business operations.
If You are Contacted by the IRS
If the IRS is reaching out to you personally, you’ll want professional help. If it’s handled incorrectly in any way, it could turn into a big deal. Have financial representation on your side and is fluent in IRS-speak.