Hiring a Tax Pro - Three Essential Steps

 

Those are various tax professionals out there who can offer you help. But choosing the appropriate type of tax preparer is just easy part.  The hard part is finding the best person to handle the job.

 

If you're planning to enlist the help of a professional tax preparer for the first time, or you want a new tax preparer because you're not happy with your current preparer, these five steps will guide you:

 

1. Get referrals.

 

Ask people around you - relatives, friends, colleagues, etc. - if they can recommend a good individual tax preparation. If you just moved and don't know many people in the area, you can approach your state's CPA society for referrals, search the Accreditation Council's website, or use the National Association of Enrolled Agents' search tool.

 

2. Interview potential agents.

 

No matter how busy they are, tax preparers should have time for 20- to 30-minute phone interview. If they can't give you that, or if they will charge you for the initial interview, find someone else.

 

During the interview, you should be able to cover the following:

 

Experience

 

You'll want a tax professional who has been in this line of work long enough to take care of IRS problems and other tax-related issues.

 

Credentials

 

 The person you work with should be an Accredited Tax Adviser, a trust accountant or an Enrolled Agent. And keep in mind that the Personal Financial Specialist designation can only be given to a CPA. Verify with your state's licensing board and professional associations to make sure the candidate is licensed and is in good standing with no no disciplinary records.

 

Specialty

 

If you have specific needs, this is one very important point you should consider. If you're a small business owner, for example, you need a tax preparer who knows business accounting. Or if you're renting out some properties, find someone with experience handing such a tax situation.

 

Fees

 

 See if you have to pay a fixed rate or if you will be charged by the hour, and whether you have to pay extra fees for certain services, like planning meetings over the entire year.

 

Single Practitioner vs. Firm

 

If the preparer you're considering is part of a firm, ask whether they will double-check your returns once the associate has completed them.

 

IRS Representation

 

Ask your potential tax preparer if they will deal with the IRS when there are issues. If not, find another prospect.  You sure want someone who can and will come to your defense when needed.

 

3. Be sensitive to red flags.

 

Avoid anyone who plans to cheat the IRS. And finally, don't hire them if they want you to pay them a percentage of your refund.  Good tax preparers will only charge a flat or per-hour rate, period. Get more info about tax preparer by visiting https://www.huffingtonpost.com/2014/02/25/tax-preparations-_n_4853792.html.