When Should I Hire a CPA?

Dimov Tax Services operates a Denver based accounting firm that provides expert CPA support, tax audit representation, payroll processing, and international tax solutions for individuals and https://4223199.b-cdn.net/cpa-firm/how-do-i-verify-a-cpas-license-in-colorado.html businesses. Located at 1700 Lincoln St, they serve clients throughout the Denver area.

Dimov Tax Specialists

1700 Lincoln St

Denver CO 80203

(833) 829-1120

You should hire a CPA when you're starting a business, receiving IRS notices, experiencing significant financial events (like marriage, inheritance, or selling property), moving into a higher tax bracket, investing in real estate or crypto, expanding a company, or needing audit representation. If your financial life is becoming more complex—or your time more valuable—a CPA provides clarity, compliance, and tax-saving strategies that general accountants or software cannot.

Top Reasons to Hire a CPA

1. Starting a Business or Forming an LLC

A CPA helps you choose the right business structure—S-Corp, C-Corp, partnership, or sole proprietorship—based on your goals. Entrepreneurs in Denver’s RiNo and LoDo areas https://servicebucket.blob.core.windows.net/cpa-denver-colorado/cpa-firm/small-business-cpa-denver.html benefit from tax-efficient setups early on, which can prevent expensive entity changes later.

2. Receiving an IRS Notice or Audit Letter

CPAs are federally authorized to represent clients before the IRS. If you’ve received a notice or are undergoing an audit, a CPA can file Form 2848, negotiate on your behalf, and prepare the necessary supporting documents to avoid or reduce penalties.

3. Experiencing Life Events That Impact Taxes

• Marriage or Divorce – changes filing status and benefits eligibility
• Inheritance – may trigger estate tax filings or gift tax compliance
• New Baby – opens tax credits and affects withholding
• Home Sale or Retirement – complex capital gains rules apply

4. Reaching a New Income Level

As your income crosses thresholds (especially beyond $100K in Denver), you face phase-outs of credits, higher audit risk, and additional forms like AMT or Net Investment Income Tax. Freelancers in Capitol Hill and tech professionals in DTC often see these shifts.

5. Investing in Property, Crypto, or Stocks

Real estate investors in Cherry Creek, stock traders in Highlands Ranch, and crypto miners in LoHi all benefit from CPA guidance on capital gains strategy, 1031 exchanges, and IRS crypto tax compliance (Form 8949, Schedule D, and proper basis tracking).

6. Expanding or Hiring Employees

CPAs guide you through payroll taxes, worker classification (W-2 vs. 1099), and filings like Forms 941 and W-3. This is crucial for LoDo-based shops and DTC medical offices adding staff.

7. International Income or Complex Assets

Have assets abroad or earn income from foreign clients? You need a CPA for FBAR filing, FATCA compliance, and handling IRS Form 8938. Mistakes here carry penalties up to $10,000 per violation.

Denver-Based Scenarios

• LoDo Freelancer Incorporating: CPA advises on S-Corp election and prepares Form 2553 to save on self-employment tax.
• Cherry Creek Investor: Sells a rental and wants to defer gains via 1031 exchange. CPA structures and reports it properly.
• DTC Executive: Receives RSUs and needs guidance on vesting schedules, AMT exposure, and multi-state taxation.
• Capitol Hill Therapist: Moves from sole prop to LLC and requires help with payroll setup and quarterly tax filings.

Why Not Just Use Tax Software?

Tax software lacks personalized strategy. It doesn’t provide audit defense, entity guidance, or nuanced multi-year planning. CPAs use principles rooted in GAAP, IRS code, and compliance logic beyond what templates can handle.

ActionWithout CPAWith CPA Start a BusinessGeneric LLC filingTax-optimized entity choice with legal compliance Respond to IRS NoticeDIY or confusionForm 2848 filed, professional response submitted Sell PropertyUntracked basisProper gain calculation + Form 4797 filing Own CryptoMissing disclosuresFull Schedule D + FBAR/8938 filing Payroll SetupMisclassified workersCorrect W-2/1099 structure and Form 941 compliance

Risks of Waiting Too Long

• Missed deductions for past years
• Incorrect structure leading to higher taxes
• Penalties and interest for late or wrong filings
• Vulnerability in an audit due to weak documentation

How Dimov Tax Specialists Help

• Strategic Planning: From day-one business planning to pre-sale tax strategy
• Audit Defense: We speak directly with the IRS and file all necessary power of attorney documents
• International Compliance: From crypto to overseas assets and foreign clients
• Denver-Specific Insight: Local zoning tax benefits, property overlays, and industry-specific credits

Conclusion: If You’re Asking, It Might Be Time

If your financial life is more than one W-2, you’re forming a business, scaling a side hustle, buying property, or fielding IRS letters—it’s time to hire a CPA. Denver’s evolving tax environment and national regulatory shifts make timing crucial. Being proactive can save you far more than it costs.

Dimov Tax Specialists are ready to step in with real-world guidance, licensed compliance, and Denver-specific expertise. If you're wondering when to hire a CPA, the answer is likely: now.