Long-Time Gulfport CPA David Hastings Shares Expertise On Filing Taxes

Although the dreaded “tax season” has been with us since January, for many people, including numerous residents and business people in the Gulfport area, they are only now tackling the job of filing their 2010 income taxes. Some may even be waiting a few more weeks before getting the gumption, knowing the deadline is upon them, but putting off until the last minute what is often an unpleasant task for most of us.

With this in mind, we decided to talk to a long-time, local tax expert, David C. Hastings, CPA, PA, also a member of the Gulfport City Council, for his insight and advice on tax preparation. Here are just some of his thoughts and wisdom.

Surprisingly as it may seem, thanks to modern technology which now allows people to file their taxes electronically, with easy-to-use computer software, Hastings says many of the errors made in the past by people doing their own tax returns manually have been eliminated. However, it is important for those doing their own taxes using such software to have the most current version of a tax program. It changes every year along with tax laws.

If you decide you would rather have someone prepare your taxes, Hastings strongly advises people to steer clear “of going to your neighbor or a friend, who just happens to do tax preparation.” Doing so is just asking for trouble. It is the kind of common mistake people make Hastings says “in the hope of saving money, rather than going to a qualified tax preparer.” 

And who is a “qualified tax preparer”? Hastings recommends the only professional anyone should go to is a “licensed tax preparer.” Elaborating on this point, the Gulfport CPA noted what most taxpayers do not realize is that no license is required to become a paid tax return preparer. Tax return preparers do not have to be licensed by the federal government or any state agency in order to prepare tax returns for a fee. Furthermore, it is the taxpayers who are ultimately responsible for errors made on their tax returns even if the errors were made by the tax preparer. And, believe it or not, it is these unlicensed tax preparers, with minimal training, who are often hired by the various well-known tax consultation/preparation franchises.

Hastings says these franchise operations may be fine for some people, but the more complicated your finances are is all the more reason to go to a CPA. “The bottom line is you get what you pay for.”

When using a CPA, like Hastings' firm, what you want to bring to the accountant are any documents that reflect “truly” all of your income for the previous year.  That means not merely W-2s, but any 1099 forms that reflect “miscellaneous income,” such as interest income, distributions from pensions, annuities, retirement plans, IRAs, and so on.

All of this may seem like common sense, but Hastings says he has encountered numerous instances where people “didn’t know what to do with the 1099 forms and simply put them in a drawer.”  Not a smart thing to do, for the income noted on these forms, has never been accounted for, and can lead to stiff penalties. “There is a statue of limitations, three years, on refunds due you by the IRS, but there is no time limitation if you owe money to the IRS.”

David Hastings can be reached at (727) 322-0909 or by e-mail at: davidcpa@tampabay.rr.com.  You can also find out more about Hastings' accounting firm online, which includes links to sites on a state and federal level for additional tax information.