Selecting the right tax professional can be just as important as choosing the right person to marry. Okay, maybe not as serious as marriage, but it is pretty important. Think about it. Since more than likely, you are not an expert in tax, you have to find a professional you feel comfortable with and whom you can trust to prepare your return accurately and give you insight where needed. When you do not ask the right questions upfront, you usually find out that your tax preparer really was not the expert you thought he or she was, when it’s too late. This post provides insight on what you should consider when choosing a tax professional this tax season.
1. Know what you will need from the tax preparer
You should have a clear understanding of your tax needs when selecting a tax professional. Understanding your tax situation will help you determine if it’s too complex for your current preparer and allows you to ask more selective questions to potential preparers in order to make sure they have the expertise in the areas you require.
2. Understand their policies for future servicing
You should know upfront how a tax professional will serve your needs for additional assistance if audited or if you receive a tax notice that you do not understand. You should ask about their availability after tax season (January – April) and whether or not additional fees will be charged if any IRS questions should arise regarding the return he or she prepares on your behalf.
3. Be wary of preparers who do not sign your tax return
Individuals who are paid to prepare federal tax returns must sign the return with their own signature. Your return should not have “self-prepared” in the signature area of your tax return copy if you paid someone to prepare the return. This type of signature stamp is typically only used if you used a “do-it-yourself” (DIY) software package to prepare your return. If a preparer does not sign your tax return, they are in essence denying the fact that they have provided you a service and you should question ethics of the tax preparer and pass on him or her.
4. Compare preparation fees to the value of service being offered
Since the cost for tax preparation services can vary greatly among different tax professionals, we have found it to be more important to understand what you receive in return for the fees you pay. You should determine what is important to you and whether or not the fee being charged will be worth it. For instance, many would pay a premium in return for great customer service. It is important to work with someone who will be there when you need them and whom you can trust their expertise.
The selection of a tax preparer should be based on your needs as a taxpayer, how you want to be treated as a client and whether or not you believe the potential preparer can deliver on these. Inquire about fees being charged to know what you wil be expected to pay when services are rendered, however be sure to compare those fees to the benefits you expect to receive in return.
Need more help looking for a tax preparer? Download our 10 Questions to ask your new Tax Preparer list to interview potential tax preparers.
Thank you for explaining that you should have a clear understanding of what you need from your tax professional. My friend is thinking about hiring someone to do her taxes since she started a business this year and doesn’t know where to start. I’ll be sure to mention this to her so that she can find someone that will work well with her needs.
In a few months, my sister and her husband are starting a business, and they’re worried about how they’ll do their taxes. I think the wisest thing to do would be to hire a tax preparer since their business and personal taxes could be different. I’ll suggest it and share your post about comparing tax preparation services’ fees.