When should you hire a tax accountant?

Bringing on a tax accountant may be of use in the following cases:

1. Complicated Income Tax Situations: If you have several sources of income, investments, rental properties, or own a business, this accountant will take you through the complexities involved in the tax system and ensure that you comply with each regulation.
2. Major Life Changes: Events like marriage, divorce, retirement, or major financial changes—inherited or sold property—may significantly affect your taxation. A tax accountant can handle such situations with the right advice.
3. Time Constraints: If you are too busy handling your taxes or feel too overwhelmed to do it, then a tax accountant saves you much-needed time in running all affairs on your behalf.
4. Maximize deductions and credits: A tax accountant will help you claim deductions and credits you may simply not remember, therefore saving your money in the process.
5. Tax Planning: More so than filing taxes, a tax accountant will help to empower you with long-term strategies designed to reduce your liability burden in the future.
6. Avoiding Mistakes: If you are afraid of making errors in your tax return that may lead to an audit or even penalties, the tax accountant will make sure of the accuracy and compliance.
7. Dealing with the IRS: In case you are audited or have other problems with the IRS, a tax accountant can represent you by replacement and contacting them on your behalf.
8. Opening or Closing a Business: The tax requirements of business can become very complex, and a tax accountant will advise on what needs to be done if business is opened or closed.

In general, if your financial affairs are quite simple, then you may well be able to cope on your own. In the above situations, though, using a tax accountant may be a sound investment.