Preparing Your Taxes
February 2, 2006, By Judy Richards

With user friendly tax software available today, many people are choosing to file their own taxes. If your financial situation is simple and straight forward, or if you are comfortable with filling out your tax return, this may be option for you. However, if you fall into one of the following categories, you may want to consider seeking the help of a tax preparation service or professional:
* High Income
* Foreign Income
* Large Real Estate Investments
* Numerous/Complicated Investments
* A Major Life Change
* A New Home
* A Job that Requires Extensive Travel
* Lived in more than One State or Country
* Are Not Familiar with Tax Laws
* Do Not Follow Instructions Well
* Small Business Owner
* Hires Household Employees
* Little Time to Fill Out the Forms
* Need Tax Advice

Here are some Options:

Tax Preparation Houses - Professionals employed at Tax Preparation Houses are best suited for simple to moderately complicated returns. Returns can be prepared for a low price and typically are completed on the spot. This tax help will be limited to preparing the return, therefore do not plan on obtaining any tax advice.

Enrolled Agents - These tax professionals are either former IRS employees or individuals who have passed tax exams and an IRS background check and are licensed by the government. In addition to preparing taxes, they can offer advice in the event you are audited, and may represent you before the IRS. They are less espensive than CPA's.

Certified Public Accountants - Because CPA's are required to pass extensive exams and are required to continue their education in order to stay informed on current tax code changes, these professionals are the best advisors available for filing tax returns and offering advice on ways to reduce taxes. Their fees are higher than enrolled agents or tax preparation houses. Costs can be minimized by keeping well documented and organized tax records.

Tax Attorneys - These professionals should be consulted when tax legal matters arise, legal structures such as trusts are needed, or assistance is required to minimize a tax burden.