If you plan to hire a tax advisor to help you with your returns this year, the IRS offers some tips to consider when selecting one. The right one can save you hundreds and even thousands of dollars. Unfortunately, choosing the wrong one or trying your luck with an unknown online software program will not only waste time and money, but will also result in the need to hire another professional, lost deductions, and valuable tax advice. If yours is simple in nature, you may want to consider skipping the $200/hour CPA and going with a person who is less in demand. However, if you have a complex return involving multiple lawsuits and those tricky gray areas, hiring a professional is a good idea. But how do you know who is the best person for this job? Here are some tips when buying:
Ratings
Most importantly, the IRS urges taxpayers to strictly use tax advisors who actually sign each return they prepare and enter their preparer tax identification numbers (PTINs). The new regulations require all paid tax preparers to have a PTIN. Also, you should find out if they have any affiliations with professional organizations and attend continuing education courses. In the near future, the IRS will require preparers who are not certified public accountants, enrolled agents, or attorneys to take a test to become registered tax return preparers.
History
It’s always a good idea to check the person’s history with the Better Business Bureau to make sure there have never been any disciplinary actions or license revocations. Also, you can check with the state bar association for attorneys, as well as the IRS Enrollment Office for enrolled agents.
service fees
If the person you select bases their fee on a percentage of your refund, it’s probably best to find someone else. It should also be understood that you ensure that all your refunds are deposited into your account and in your name.
IRS e-file
More than a billion individual tax returns have been processed securely since the introduction of electronic filing in 1990. Unless you opt for a paper copy, all paid preparers filing returns for more than 10 clients must do so. electronically.
Request for Records and Receipts
Any trusted professional will request all supporting information and ask you numerous questions to correctly determine your deductions. You should also have full accessibility to the person you hire during and even after you have submitted the application in case any questions or concerns arise.
Lastly, it should be common knowledge that you should never sign a blank form. And before you sign a full one, make sure you understand the entire form. Please review it, ask questions, and confirm the accuracy of the data before signing the dotted line. One would assume that each year’s presentation is very black and white, but a tax adviser proves himself worthy by knowing the gray areas. Based on experience and education, they know best how to interpret IRS decisions.
