Tax Preparer for Hire: Why Professional Help Beats DIY Filing

Filing taxes each year can be stressful for many people. If you are contemplating whether to prepare your returns with a DIY option or hire tax professionals, the stakes can be high, financially and psychologically. 

Let's discuss what it is like to hire a tax preparer, the advantages and disadvantages of getting professional help versus filing yourself, and discuss the real costs of tax prep. We'll also see how tax preparer hiring can save you money, save you stress by reducing errors, and give you peace of mind.

Issues with DIY Tax Filing

There's a certain appeal to filing your taxes yourself for several reasons. First, it's generally cheaper in the short run, you have instant control, and it's suitable for simple returns (single W-2 employees, no dependents, no business income). 

Filing taxes becomes an overwhelming process, and there's a greater chance of inaccuracy once you become self-employed, claim expenses to a business, have multiple streams of income, are a freelancer, invest, or own a rental property. 

Some of the hazards of doing it yourself:

• Missing tax credits or deductions
• Filing the wrong forms or schedules
• Bookkeeping errors in your income and expense reporting
• Over- or under-reported income
• More IRS notices, penalties, and audits

Why Hire a Tax Professional? The Benefits Explained

Below are the benefits you get when you hire tax professionals:

1. Expertise and Accuracy

• Tax preparers who are licensed (CPAs, EAs, credentialed tax pros) keep up with constantly changing tax law and know which deductions and credits you really do qualify for.
• They are well-versed in the complications that come with business ownership, consulting or freelance work, rental property, investment income, foreign accounts, and multi-state taxes.
• They are also trained to know when we or you can minimize mistakes that trigger audits and I.R.S. penalties.

2. Time and Stress Savings

• Tax paperwork is time-consuming, especially when your tax records are disorganized and maybe you aren’t aware of exactly what is mandatory for the IRS.
• A tax expert can align, investigate, and prepare your return accurately—and fast, allowing you to recover time and lessen your cognitive load.

3. Maximized Refund and Savings

• Tax professionals can take the time to thoroughly investigate every deduction and credit you might qualify for, and oftentimes realize tax breaks you may never consider on your own, or only chance your own gross income could be reduced, and ultimately put real cash back in your bank account.

4. Audit and Representation

• If you are audited, a CPA or EA can represent you in front of the IRS, and will advocate on your behalf regarding your case (most likely handle ) any negotiations directly with the IRS as it relates to the audit.
• They will assist you in organizing the records, responding to the agency for records it requests, explaining the positions taken on specific items dealing with your return, and minimizing any exposure.

5. Year-Round Advice and Planning

• Aside from the tax season, professionals provide ongoing advice for lowering your future tax burden (e.g., retirement, business structures, estimated payments, or investment strategies).

6. Peace of Mind

• Reduce the anxiety of filing, avoid IRS scrutiny, and focus on what is most important- your business and life.

How to Hire a Tax Preparer: Key Steps

Below are the steps on how to hire a tax preparer for your business:

1. Start with Referrals and Research

• Seek referrals from trusted colleagues, business peers or advisors.
• (You might use professional directories, like those at the National Association of Enrolled Agents or AICPA, or your state CPA society.

2. Confirm Qualifications and Experience

• Locate and review the qualifications of a CPA (certified public accountant), E.A. (enrolled agent) or other type they prepare taxes, Busman said, but avoid “ghost preparers” who won’t ever sign returns themselves.
• You’ll want to review their disciplinary history as well as what experience they may have related to your tax issues (freelance/self-employment, investment income, cryptocurrencies and so on).

3. Interview

Ask prospective candidates:

• What is your background? What is your specialization?
• How long have you been doing returns similar to mine?
• How do you keep up with new tax regulations?
• What kind of support do you give when I am audited?
• Can we meet virtually or must meetings be conducted in person?
• Will you be available year round for continued questions?

4. Determine the Cost structure and services 

• Obtain written cost estimates. Basic/simple returns typically start around $200 - $400, and more complicated returns, either as a business or rental property, can cost over $1000. 
• Ask if the price includes audit representation, tax planning, and/or filing an amendment. 

5. Consider Communication Style and Support 

• Selecting someone with a communication style that works for you is essential: quick to respond, clarifying new tax rules, and easy to get in contact with before the tax.

Comparing Costs: Hire Tax Expert Cost vs. DIY

Understand how much hire tax expert costs vs. DIY tax preparation:

• DIY tax software: $0 - $150 for basic returns; $200 - $400 for premium options with professional review. 
• Professional tax preparation: $200 - $400 for simple returns; $400 - $800 for itemized/complex; $800 - $2,000+ for business or investor returns. 

Overall, a tax preparer usually pays for themselves in additional deductions, errors avoided, penalties avoided, and time saved.

The Hidden Risks of DIY tax preparation 

With the complexities of the tax code, plus changing laws, it can be nearly impossible to be accurate in self-filing:

• Some Deductions/credits phase out as income increases. A pro can properly determine tax planning and strategy.
• Submission of the wrong forms or simple tax return errors can delay refunds for months or even result in an audit. 
• DIY-ers miss many important tax details that professionals know. (Retirement plan contributions, adjusting estimated payments, things to purchase at year-end, etc.)

Audit Support: Can Your Tax Preparer Stand Up for You?

Here is how your tax preparer can help with audit support:

• Credentialed preparers (CPAs, EAs, or attorneys) have unlimited representation rights if you get audited by the IRS.
• They prepare all documentation for the audit, talk with IRS agents, and explain tax positions on your return, while your DIY software won't help you do that. 
• Some tax professionals even offer inexpensive "audit protection" options so you know you will have assistance if the IRS shows up.
• Enrolled agents are specialized and focus on tax and representation, giving you even more assistance in your time of need.

DIY vs. Professional Tax Help: Comparison Table

Below is a comparison table between DIY vs professional tax preparer:

A tax preparer hiring is not just about making things a little easier on you when you’re in the middle of a filing crunch. It's about protecting yourself, saving every lawful dollar you can, and minimizing audit risk. While filing on your own may work for simple tax returns, a law-trained tax professional will provide expertise, support, and confidence, especially as your tax return becomes more complex. 

When you consider the cost of hiring a tax preparer, it is nothing when you measure the incidental expenses of avoided trouble, IRS notices, and money saved in your pocket.

Related Resources

• What to Look for When Hiring a Tax Preparer in 2025
• Top Tips for Hiring the Right Tax Preparer Near You
• 5 Red Flags to Avoid When Hiring a Tax Preparer

For anyone looking to save a large amount of taxes, comply with the law, and gain peace of mind regularly, don't take the risk that your lack of experience can cause. Hire tax professionals and work with a financial partner in all seasons.

Contact The Fino partners today to know how to hire a tax preparer for your business help.