How to Hire an Accountant for an Audit

So you've done your taxes and got a letter saying that the Internal Revenue Service has chosen you for an audit. If you didn't have one before, now would be a good time to hire a certified tax accountant. Or you may have used your staff to file your taxes and still got the invitation. An outside accountant can give a fresh eye and suggestions to your situation.

Instructions

Difficulty: Moderately Easy

1. Ask for referrals from friends and business associates who have a similar business or lifestyle as your own. You will want to find an accountant familiar with your issues, not one who will use you to learn the ropes.
2. Check out the accountant's credentials. You will want to hire someone who is a CPA, or certified public accountant. To get this designation, they've received a lot more training than an accounting person without the certificates.
3. Get an agreement with your accountant of what services you are hiring him for. If you want him to attend any audit sessions with the government, you need to get that clarified up front. Many tax accountants are willing to prepare documents for you, but not go with you to meetings.
4. Be clear about your needs when you interview the accountant. Trust your instincts and only hire an accountant with whom you feel comfortable. If you find that she is misunderstanding your words or intentions, move on. Look for a little chemistry and understanding in this important relationship.
5. Consider the money, time and trouble you will save by hiring a professional tax accountant when you look at the fees associated with the service. By paying the accountant fees upfront, you will probably save in the long run.