Memphis attorney Vincent Perryman discusses Tax Preparation and the importance of having a Memphis certified public accountant assist you in your preparation of Federal Taxes. Having a third party assist a Memphis resident is beneficial when taxes become more complex. Paying for a Memphis tax preparer gives the resident the expertise, experience and advise to file taxes properly. Using software you are only getting the software not the experience and expertise of a Memphis CPA. There are a few types of categories of Memphis tax preparers. There are franchisees which are the preparers that have the statue of liberty advertisements standing on the street corner. These preparers offer a basic service of just preparing Memphis tax returns. They generally don't offer tax expertise or advice. Another type of Memphis tax preparer is enrolled agents. They have to take a complex test administered by the IRS in addition to a background check. These are a more reliable group that offer good advice. The next group of Memphis tax preparers are the Attorneys. This group is a little cost prohibitive. Using a Memphis tax attorney to prepare taxes is usually only recommended when there are estates or inheritances involved. The final group of Memphis tax preparers is the Memphis CPA group. A CPA is the best all around Memphis tax assistant. They work year around with all the rules, laws and tax benefits. The best way to find a quality Memphis CPA is by word of mouth. A few things to look out for once a Memphis CPA is selected are to make sure they don't offer a huge return without reviewing your financial records. Never fall for "too good to be true" promises from the Memphis tax preparer as well. The preparers that promise instant refunds take a large amount of your return as a fee and only give you a small remaining portion of your return. In essence it is an advance on your refund. Don't fall prey to this because if the Memphis tax return is filed and will be direct deposited into a checking account the IRS promises no more than a 2 week turn around on refunds.
When choosing a Memphis Tax preparer start out by meeting with the preparer to get a good feel for them. Discuss their experience and verify they have adequate experience in preparing Memphis taxes. Memphis preparers generally can't give you an exact amount of how much it will cost to prepare your taxes, but they can give a ceiling for the cost. Make sure they have the ability to prepare the return in a timely matter. If you are using a Memphis CPA you can run a background check on the CPA since they are licensed by the state of Tennessee. It is as easy as going to the Tennessee website. Memphis enrolled agents are registered with the IRS and will be in the list of Tennessee enrolled agents on the IRS website. Some specific things when looking at a Memphis tax preparer's experience is by bringing in at least 2 years of tax experience. This will allow the Memphis preparer to determine if they can handle your specific return. It is also a good idea to make sure the tax preparer is willing to discuss your finances with other agents involved in your finances for example your Memphis estate planner. After finding a Memphis tax preparer that you feel confident with bring in your financial information to them. Most preparers will have the individual prepare a financial organizer which is a questionnaire that asks key income questions to give the Memphis tax preparer a good idea of the income. Some forms to bring are official financial documentation. The most important is a W2 if you are employed. All stock option plans and contributions to charitable organizations are also some good examples of financial information a Memphis CPA will need to prepare your taxes.
Some additional documents to bring to your Memphis tax preparer are any forms of income that are not included in a 1099 and also any receipts that can be applied against the 1099 as a business expense. Any schedule C information such as insurance, mileage on business vehicle, telephone, computer fees, and any equipment that depreciates over a long period of time. If you are a member of a Memphis S-corp or Memphis Partnership it is a good idea to bring in your K1s. K1s are proof of earnings and losses on a Memphis business. Other 1099s are also important. All 1099s that are proof of money received from investments. 1099s that have dividends that roll over into the investment will need to be claimed as well. On the deduction side, some good forms to bring are 1098s for mortgages. Any additional information received that involves finances, personal or business. The more information given to the Memphis Tax Preparer the better. Some new credits that can be applied to Memphis taxes are the 8000.00 first time home buyer's tax credit. This allows any Memphis resident that is purchasing a home to receive an 8000.00 tax credit. This tax credit has been extended into 2010. An additional benefit that is included in the new tax bill in addition to the first time home buyer tax is the unemployment benefit. This allows the first 2400.00 earned from unemployment to be untaxed. Also if you are laid off from a Memphis business the government subsidizes the Cobra health plan up to 65% of the cost.
