If you intend to hire a tax consultant to help with your returns this year, the IRS offers some suggestions to consider when choosing one. The right one can save hundreds if not thousands of dollars. Unfortunately, choosing the wrong one or trying your hand with an unknown online software program will not only waste your time and money, but also result in the need to hire another professional, missed deductions, and valuable tax advice. If yours is modest, you might consider skipping the $200 per hour CPA and opting for the less demanding ones. However, if you have a complex return that involves a lot of appraisal calls and tricky gray areas, hiring a professional is a smart idea. But, how do you know who is the best person for the job? Here are some suggestions when shopping:
Qualification
Most importantly, the IRS urges taxpayers to strictly use a tax consultant who actually signs every return they prepare and who includes their Tax Identification Number (PTIN). The new regulations require that all paying tax preparers have a PTIN. In addition, you should find out if he has affiliations with professional organizations and is taking further education courses. In the near future, the IRS will require makers who are not CPAs, registered agents, or attorneys to take a test to become Registered SPT Broadcasters.
History
It’s always a good idea to check the person’s history with the Better Business Bureau to make sure no disciplinary action or license revocation has ever taken place. Additionally, you can check with the state bar for attorneys, as well as the IRS Registry for registered agents.
Service Fee
If the person you choose is basing their fees on a percentage of your refund, you may want to find someone else. It should also be understood that you ensure that all your refunds will be deposited into your account and on your behalf.
IRS e-file
More than one billion individual tax returns have been securely processed since the introduction of electronic filing in 1990. Unless you opt for paper copies, all paid author filings for more than 10 customers are required to do so electronically.
Request Notes & Receipts
Any reliable professional will ask for all backup information and ask you lots of questions to properly determine your deductions. You should also have full access to the people you hire during and even after you ask if any questions or concerns arise.
Lastly, it is common knowledge that you should never sign blank forms. And before signing the complete one, make sure you understand everything on the form. Review, ask questions, and confirm the accuracy of the data before signing the dotted line. One would assume that each year’s filings are very black and white, but tax consultants have proven their worth by having knowledge of the gray areas. Based on experience and education, they know best how to interpret IRS decisions.