Tax preparation is the process of organizing and completing the necessary paperwork to file taxes accurately with the appropriate tax authorities, such as the Internal Revenue Service (IRS) in the United States or HM Revenue & Customs (HMRC) in the United Kingdom. It involves gathering financial information, calculating tax liabilities, claiming deductions and credits, and submitting tax returns by the relevant deadlines. Tax preparation can be complex and time-consuming, especially for individuals with diverse income sources or complex financial situations. Many taxpayers choose to hire professional tax preparers or use tax preparation software to ensure accuracy and compliance with tax laws and regulations. Proper tax preparation helps taxpayers minimize their tax liabilities, maximize their tax refunds, and avoid potential penalties and audits from tax authorities.