Where To Look for a Tax Accountant
Asking for referrals can be a good bet when it comes to finding someone who’s the right fit for what you need. Ask business owners, financial advisors, and attorneys that you trust, as well as any friends or family members who work with an accountant. Don’t hesitate to call the firm or the accountant to find out whether they have the expertise to handle your taxes if there’s anything unusual about your situation.
Determine Legitimacy of Accountant
Be wary of an accountant who promises you a giant refund right from the start, before they’ve even analyzed your personal financial situation. The same goes for someone who says that you can deduct an excessive number of expenses before really talking to you. You can pull the plug if necessary. Don’t be afraid to shop around or to change accountants if you aren’t satisfied or comfortable with the service you’re receiving, even if you’re midway through the process and the tax deadline is looming. You can always request an extension of time to file your return by submitting IRS Form 4868 instead of your Form 1040, so you’ll have more time to find the right professional.
Retail Tax Franchises
Retail tax franchises such as H&R Block, Jackson Hewitt, and Liberty Tax Service offer competent help if you just want to file a relatively straightforward tax return. Sometimes you can even find certified public accountants (CPAs) and enrolled agents (EAs) working in these offices. Ask if you can meet with a CPA, an EA, or a senior tax preparer if you decide to use one of these services. That way you’ll get to work with a more seasoned professional.
Types of Tax Professionals
Depending on your situation, you might want to hire an enrolled agent, a certified public accountant (CPA), or a tax attorney.
Enrolled Agents
Enrolled agents (EAs) have to pass rigorous testing and background checks administered by the IRS. It’s the highest credential that you can receive from the IRS. EAs often specialize in certain tax areas, and they’re best for dealing with complex tax situations. They can represent you before the IRS if you’re faced with an audit or collection actions.
Certified Public Accountants
Certified public accountants (CPAs) have passed the rigorous Uniform CPA Examination, and they’re licensed by the board of accountancy in the state where they work. They have accounting degrees from a university or college, and continuing licensing requirements involve meeting certain character and experience thresholds. CPAs often specialize in areas specific to accounting. Some specialize in tax accounting, but not all CPAs handle tax issues. A CPA can also represent you before the IRS if you’re dealing with an audit or collections.
Tax Attorneys
Tax attorneys are lawyers who specialize in tax law, and they’re licensed by state courts and state bar associations. They may also have master of law degrees in taxation, in addition to the required law degree. Attorneys are best at complex legal matters such as preparing estate tax returns or taking your case before the U.S. Tax Court. They’re typically also subject to continuing education requirements.
Interviewing Tax Accountants
You don’t want commit your personal business to anyone you haven’t met, so arrange to sit down the professional to discuss your situation and to ask some questions before your first official visit, even if you have to do it over the phone. Request references, just as you would from anyone you’re thinking of hiring, and reach out to those references to corroborate them.
Questions for References
When speaking with references, remember that not everyone will feel comfortable talking to you, and keep it simple. Ask basic questions like, “Are you pleased with their services?” or “Did you ever have a problem with them?” The answers to these questions can tell you a lot, especially if you stop talking after you ask and let the other individual state whatever comes to their mind.
Questions for Accountants
Asking the right questions can help ensure that you find someone who’s experienced and trustworthy. Some areas to explore include:
What licenses or designations do you have?How long have you been in the tax business?What tax issues do you specialize in?Do you outsource any of your work, or do you and/or your staff perform all work personally?Approximately how long will it take you to finish my tax return?What are your fees? Are they negotiable? Can I have that in writing?What is your privacy policy?Do you believe that I’m paying too much, too little, or just the right amount of tax?
Vetting Tax Accountants
Perform a quick background check after your initial interview. You might even search for the professional’s name in social media. Find out what’s said on their own site, and what others have said about them. Contact your state’s board of accountancy to check the status of a CPA’s license or to find out whether any disciplinary action has ever been taken against the accountant. You can ask the IRS Office of Professional Responsibility if an EA has ever been censured or subjected to other disciplinary action. You might also want to check with your local chamber of commerce.
