How to Choose a Tax Accountant
Even with the latest convenience options in tax preparation, such as eFiling and tax software, it is sometimes easiest to simply let a tax accountant do the work for you. If you choose the right professional, you'll probably secure a larger refund and create far fewer chances for error. However, it is important that you choose a tax accountant who is compatible with your situation.
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Instructions
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Understand that the laws for tax accountants vary depending on where you live. Just because someone advertises tax services doesn't mean he is a tax accountant, so make sure to check credentials closely.
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Research storefront preparers. These are the large firms and chains that handle enormous quantities of clients every year, and often provide a wide range of services for their customers. If you choose this route, you'll be assigned to a tax accountant, but make sure that she is capable of understanding your particular return.
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Realize that fees are competitive for storefront preparers. You might be able to secure a lower fee if you get in early with your tax information.
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Consider hiring an enrolled agent as your tax accountant. These professionals have passed the exam for tax preparation administered by the IRS (see Resources below), and are probably the best bet if you have complicated taxes. It is also important to note that enrolled agents can represent you should you come under scrutiny with the IRS.
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Solicit a referral for a Certified Public Accountant. A CPA is state-certified and can also act as an enrolled agent, which means that you are gaining several years of experience when you hire one as your tax accountant. However, it is usually best to get a referral from a friend or colleague so you know you're dealing with a reputable professional.
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Inquire about special requirements. If your tax return is more complicated than most, ask if the accountant has specific experience in that area of tax preparation. If not, you'll probably be better off going with someone else.
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Obtain a written fee schedule. A dishonest tax accountant will issue a quote for the basic tax return, but will tack on extra fees wherever he can find an opportunity. Ensure you won't be surprised by the final bill by asking for a written fee schedule that contains every potential charge you might incur.
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Realize that interstate tax returns will be more difficult. If you've moved to another state during the past fiscal year, you'll need to hire a tax accountant who understands the laws in both states. This will prevent serious mistakes and will ensure you get the maximum refund.
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Ask about potential audits. Some consumers are at a higher risk than others for IRS audits, and your tax accountant should be willing to represent you should the IRS come knocking. Ask whether or now she will be confident and comfortable with going to bat for you.
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Tips & Warnings
Look up the tax accountant with the Better Business Bureau to see if any complaints about illegal aggressiveness have been filed.
Get involved with every step of the tax preparation procedure. If you're looking over his shoulder, a tax accountant will be less likely to cut corners.
Never stay with a tax accountant who guarantees you a specific refund amount.
Stay away from accountants who charge based on what you might get from the IRS.
Never sign a blank form or agree to submit a return that isn't signed by the tax preparer.
