Disadvantages of filing tax returns on your own

Filing tax returns is an important financial activity which can have a lot of impact on your financial situation, not only in the immediate future but also many years after the filing. Your tax returns can be audited by the Internal Revenue Services (IRS) and if there are errors you may be found guilty of Tax Evasion. Many people around the world choose to file the tax returns themselves, in order to save some money, instead of hiring a qualified accountant or tax consultant. This puts them at a direct risk of misfiling and puts them in the radar of the IRS. Apart from these, here are a few disadvantages of filing the tax returns on your own:

1. Dealing with undue stress: Dealing with the stress of tax filing is difficult, due to people not being aware of the various laws and regulations that they need to follow. The information at many sources is ambiguous and even conflicting at times. Lack of numeracy of the taxpayer may also put a lot of stress on them along with understanding the specific terms and conditions of the tax regulations.
2. Missing deadlines: As much as we like to think of us as organized individuals and businesses, we do have other deliverables and demands that we have to attend. This means that despite reminders, we may end up missing the deadline for the tax returns to be filed. It is better to hire a tax attorney who will be accountable for the tax deadlines to be filed in a timely manner.
3. Risk of misfiling: People who are not experts in the field of taxation can often misinterpret the tax laws and regulations or refer to an older version of laws themselves. This is due to the fact that the tax laws and regulations are subject to change without prior notice. Another reason why the taxpayer may misfile is because tax laws change from one city to another and even seasoned taxpayers may miss the finer points.
4. Not taking full advantages of concessions: One of the biggest reasons why the taxpayer must at least get an expert opinion on their tax returns is because the tax attorneys can advise and suggest various methods by which you can save on the tax amount legally. The taxpayer or the business may qualify for some discounts, concessions or investments which can bring down the final tax amount. Many times the tax attorney fees get covered just by the money one saves in the tax return.

It is true that self-filing can save you some money by not having to pay any fees to the tax attorney, but if there are any errors in the tax return it can be a costly mistake. The IRS may put tax liens and levies, garnish your wages and even bring down your credit rating permanently. In order to avoid any such unpleasant situation, it is strongly advised to hire a qualified tax attorney.