What Are The Advantages And Disadvantages Of Self Assessment System To A Tax Payer?

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Connor Sephton answered
Self-assessment of one's own taxes has advantages and disadvantages; one of the biggest "pros" of doing your own taxes is ease, convenience, and affordability. Today, there are many ways to do your own taxes - these include software packages that guide you through the process, step by step, and then calculate what you owe, or what refund you are due. Many people are tired of filling out forms when they do their own taxes, so they find the convenience of a software application very appealing. In time, people may cease to fill out tax forms "the old-fashioned way". However, there are drawbacks, or disadvantages, to using software, or doing other self-assessments of your own taxes.

Disadvantages of doing taxes:

• You will not understand the tax system the way an accountant or tax specialist would
• You may not know how to claim the full amount of deductions you are eligible for
• You may make mistakes that lead to an audit or other problems with the tax department.

Since accountants and tax specialists are there to help clients pay the least amount of taxes they can (within the boundaries of federal law), hiring a financial specialist to help you file your taxes can be very wise. However, if your income is not very high, and your tax returns are usually very simple and straightforward, hiring an accountant may not be cost-effective. On the other hand, if your taxes are complicated, it may be worth your while to pay for the professional services of a tax specialist.

Tax software is available at most retail outlets, and it is usually filed directly through a secure online platform. Some people can finish their taxes within 15 minutes of loading in the CD-ROM and following the instructions. One other advantage of this system is that a tax refund may be delivered promptly, since your return doesn't need to travel through "snail mail".

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