How to choose a tax professional? That's an individual decision, depending on your needs and expectations.
But here's a quick checklist to guide you through the process.
Evaluate Your Needs.
1.
If computing your end-of-year tax obligations requires basic information only - employment income reported on W-2s, mortgage interest and real estate taxes - and you are not looking for planning and/or financial guidance, then a national tax firm such as H&R Block or Jackson Hewlett may fit the bill.
These folks do a good job with basic situations.
Firms such as these use part-time personnel with good basic training.
However, most do not have the in-depth knowledge needed for more complex returns.
And if you think you'll need tax counsel after April 15th, don't look for your preparer, since these companies typically don't keep their part-time people on staff after tax season.
While someone at their main office may be able to answer your question, they won't know you or your situation personally.
These firms generally hire tax preparers for the season, not necessarily professionals.
However, as a member of one of the national firms, these tax preparers have the advantage of supervision by, and access to, the firm's more knowledgeable professionals.
You may want to steer clear of the many local part-time shops that open in season.
These preparers may have no professional supervision or accounting experience at all.
The State of Florida has no requirements that a paid tax preparer have any kind of tax experience or accounting knowledge.
State and local governments do not test tax preparers.
2.
Are you self employed? Do you have investment income, own rental property? Are you part of a limited partnerships, own S-corporation stock? Do you have capital gains or capital losses? Did you take money out of a pension or annuity? Did you receive foreign income? Have a casualty loss, or investment expenses? Will your return show more than just wages, mortgage interest and real estate taxes? Do you want help with tax planning and financial guidance? Then you should look to a tax professional.
Choosing a Professional.
There are three types of tax professional.
The following descriptions will help you determine which type is best for you.
1.
Certified Public Accountants (CPAs) are licensed by the Florida State Board of Accountancy.
They are tested on accounting, auditing and tax knowledge, and must meet continuing education requirements set by the state board.
These professionals can represent you before the Internal Revenue Service, and can practice only in the states where they hold licenses.
2.
Attorneys can represent you before the Internal Revenue Service, but not all attorneys have the extensive knowledge needed to prepare a complex return.
However, if you have a problem involving fraud, or a criminal matter, this may be the best place to start.
When seeking an attorney to assist you with tax matters, look for a Board Certified Tax Attorney.
These attorneys have the knowledge and experience to assist you with complex matters.
3.
Enrolled Agents (EAs) are professionals who have demonstrated technical competence in the field of taxation.
Enrolled Agents can represent taxpayers before all administrative levels of the Internal Revenue Service.
Of the three types of professionals, only Enrolled Agents are required to demonstrate to the IRS their competence in matters of taxation before they may represent a taxpayer before the IRS.
Unlike attorneys and CPAs, who may or may not choose to specialize in taxes, all EAs specialize in taxation.
EAs are the only taxpayer representatives who receive their right to practice from the United States government.
What You Can Expect from Your Tax Professional.
1.
You should interview the professional before hiring his or her firm.
Be sure to ask if they are willing to spend time with you each year, or will they simply want you to drop off your papers.
The latter will not help you to pay the least tax possible.
2.
To get the most from your tax professionals, you need to know them - and even more importantly, they need to know you.
This won't happen if you simply drop off your papers and then pick up a completed return.
3.
If you knew all the nuances and regulations of tax law you would n't need a professional.
An annual meeting with your professional ensures that you have not overlooked something.
You should meet with your professional each year to review your situation and any changes that may have occurred in your life.
A good tax professional will use this time to help you uncover deductions you may have overlooked and to help you take advantage of the coming year's possible tax strategies.
4.
Find a professional with a process that helps you identify the deductions you are entitled to.
Your tax professional should have a checklist to make sure he/she covers everything when meeting with you and completing your return.
(I have done thousands of tax returns over the years and I still run my checklist at every client meeting and at every stage of every return.
) 5.
Your tax professional should be available year-round to answer your questions and respond to any correspondence you may receive from the IRS.
Find out what the tax professional's policy is regarding fees.
Is there an extra charge for this service or is it included in the preparation fee? 6.
If your return is audited, the tax professional should be willing to represent you before the IRS.
This should be done under Power of Attorney and you should not have to attend the audit.
(If a tax professional tells you his or her returns are never audited, he or she is either working harder for the IRS than for you, or is not telling the truth.
) 7.
Some professionals charge for representing clients with the IRS.
Others include the service in their preparation fee.
Our firm's policy is to stand behind our work; we will defend any return we have prepared for the taxpayer at no additional cost.
8.
Will the professional meet with you before the end of each year to assist you with tax planning? Do they charge extra for this service? Our firm has found it pays to provide free year-round planning.
This policy encourages clients to call us before concerns become problems.
It allows us to help clients make good choices and save money.
9.
Your professional should know what it will take to complete most returns after meeting with you and reviewing your situation and papers.
It's always best to know the cost before you give the go-ahead.
However, don't expect to get a fair estimate of costs over the phone.
Make an appointment to meet with the tax professional personally.
Your tax professional should put your fee in writing; it saves any misunderstanding later.
If the professional charges by the hour, ask for an estimate of the maximum amount.
If they can't provide that, leave and go somewhere else.
10.
Make sure you can contact your tax professional when you need to.
Does a live person answer the phone? How do they answer calls? You won't want to talk to voice mail if you get a notice from the IRS or have a question.
11.
Does your professional have office hours year-round? Offer appointment hours that meet with your schedule? Offer evening or weekend hours? 12.
Do they enjoy a good reputation in the community? What do other clients and business people say about the firm? 13.
Is the office organized and neat? You don't want to leave your information with people who can't keep track of what they have and where it is.
You don't want your mess lost in their mess.
14.
Do they seem overwhelmed? Tax season is a busy time for all professionals, but a good professional in a well-run office won't seem like it's going to kill him or her.
The last thing you want to do is give your work to someone who seems like it's more than they can handle.
Ask when you can expect to receive your completed tax return.
It should n't take more than two weeks for most returns to be completed.
But here's a quick checklist to guide you through the process.
Evaluate Your Needs.
1.
If computing your end-of-year tax obligations requires basic information only - employment income reported on W-2s, mortgage interest and real estate taxes - and you are not looking for planning and/or financial guidance, then a national tax firm such as H&R Block or Jackson Hewlett may fit the bill.
These folks do a good job with basic situations.
Firms such as these use part-time personnel with good basic training.
However, most do not have the in-depth knowledge needed for more complex returns.
And if you think you'll need tax counsel after April 15th, don't look for your preparer, since these companies typically don't keep their part-time people on staff after tax season.
While someone at their main office may be able to answer your question, they won't know you or your situation personally.
These firms generally hire tax preparers for the season, not necessarily professionals.
However, as a member of one of the national firms, these tax preparers have the advantage of supervision by, and access to, the firm's more knowledgeable professionals.
You may want to steer clear of the many local part-time shops that open in season.
These preparers may have no professional supervision or accounting experience at all.
The State of Florida has no requirements that a paid tax preparer have any kind of tax experience or accounting knowledge.
State and local governments do not test tax preparers.
2.
Are you self employed? Do you have investment income, own rental property? Are you part of a limited partnerships, own S-corporation stock? Do you have capital gains or capital losses? Did you take money out of a pension or annuity? Did you receive foreign income? Have a casualty loss, or investment expenses? Will your return show more than just wages, mortgage interest and real estate taxes? Do you want help with tax planning and financial guidance? Then you should look to a tax professional.
Choosing a Professional.
There are three types of tax professional.
The following descriptions will help you determine which type is best for you.
1.
Certified Public Accountants (CPAs) are licensed by the Florida State Board of Accountancy.
They are tested on accounting, auditing and tax knowledge, and must meet continuing education requirements set by the state board.
These professionals can represent you before the Internal Revenue Service, and can practice only in the states where they hold licenses.
2.
Attorneys can represent you before the Internal Revenue Service, but not all attorneys have the extensive knowledge needed to prepare a complex return.
However, if you have a problem involving fraud, or a criminal matter, this may be the best place to start.
When seeking an attorney to assist you with tax matters, look for a Board Certified Tax Attorney.
These attorneys have the knowledge and experience to assist you with complex matters.
3.
Enrolled Agents (EAs) are professionals who have demonstrated technical competence in the field of taxation.
Enrolled Agents can represent taxpayers before all administrative levels of the Internal Revenue Service.
Of the three types of professionals, only Enrolled Agents are required to demonstrate to the IRS their competence in matters of taxation before they may represent a taxpayer before the IRS.
Unlike attorneys and CPAs, who may or may not choose to specialize in taxes, all EAs specialize in taxation.
EAs are the only taxpayer representatives who receive their right to practice from the United States government.
What You Can Expect from Your Tax Professional.
1.
You should interview the professional before hiring his or her firm.
Be sure to ask if they are willing to spend time with you each year, or will they simply want you to drop off your papers.
The latter will not help you to pay the least tax possible.
2.
To get the most from your tax professionals, you need to know them - and even more importantly, they need to know you.
This won't happen if you simply drop off your papers and then pick up a completed return.
3.
If you knew all the nuances and regulations of tax law you would n't need a professional.
An annual meeting with your professional ensures that you have not overlooked something.
You should meet with your professional each year to review your situation and any changes that may have occurred in your life.
A good tax professional will use this time to help you uncover deductions you may have overlooked and to help you take advantage of the coming year's possible tax strategies.
4.
Find a professional with a process that helps you identify the deductions you are entitled to.
Your tax professional should have a checklist to make sure he/she covers everything when meeting with you and completing your return.
(I have done thousands of tax returns over the years and I still run my checklist at every client meeting and at every stage of every return.
) 5.
Your tax professional should be available year-round to answer your questions and respond to any correspondence you may receive from the IRS.
Find out what the tax professional's policy is regarding fees.
Is there an extra charge for this service or is it included in the preparation fee? 6.
If your return is audited, the tax professional should be willing to represent you before the IRS.
This should be done under Power of Attorney and you should not have to attend the audit.
(If a tax professional tells you his or her returns are never audited, he or she is either working harder for the IRS than for you, or is not telling the truth.
) 7.
Some professionals charge for representing clients with the IRS.
Others include the service in their preparation fee.
Our firm's policy is to stand behind our work; we will defend any return we have prepared for the taxpayer at no additional cost.
8.
Will the professional meet with you before the end of each year to assist you with tax planning? Do they charge extra for this service? Our firm has found it pays to provide free year-round planning.
This policy encourages clients to call us before concerns become problems.
It allows us to help clients make good choices and save money.
9.
Your professional should know what it will take to complete most returns after meeting with you and reviewing your situation and papers.
It's always best to know the cost before you give the go-ahead.
However, don't expect to get a fair estimate of costs over the phone.
Make an appointment to meet with the tax professional personally.
Your tax professional should put your fee in writing; it saves any misunderstanding later.
If the professional charges by the hour, ask for an estimate of the maximum amount.
If they can't provide that, leave and go somewhere else.
10.
Make sure you can contact your tax professional when you need to.
Does a live person answer the phone? How do they answer calls? You won't want to talk to voice mail if you get a notice from the IRS or have a question.
11.
Does your professional have office hours year-round? Offer appointment hours that meet with your schedule? Offer evening or weekend hours? 12.
Do they enjoy a good reputation in the community? What do other clients and business people say about the firm? 13.
Is the office organized and neat? You don't want to leave your information with people who can't keep track of what they have and where it is.
You don't want your mess lost in their mess.
14.
Do they seem overwhelmed? Tax season is a busy time for all professionals, but a good professional in a well-run office won't seem like it's going to kill him or her.
The last thing you want to do is give your work to someone who seems like it's more than they can handle.
Ask when you can expect to receive your completed tax return.
It should n't take more than two weeks for most returns to be completed.
Source...