How To Choose a Personal Tax Accountant

Tax Return

You do not need to be very wealthy or a business tycoon to feel the need to hire a personal tax accountant. While businesses do need tax accountants, you may also need one if you find yourself in a miserable condition while doing your own taxes. Tax preparation can be stressful and confusing. Therefore, it is always advisable to get professional help. This can help you get a good tax return and also keep yourself or your business from unnecessary troubles like paying off tax debts and IRS audits. 

However, a personal tax accountant means a monetary expense. So, you should be careful so as to choose the right one for you. Here are a few tips to do just that:

• Retail franchises: there are a lot of retail tax franchises that can provide your competent services in the tax preparation arena. Examples include Liberty Tax Service, Jackson Hewitt, and H&R Block. You can find such tax franchises in your area as well. 

You can even find enrolled agents, certified public accountants and senior tax preparers at such franchises. If you can, try to approach these kinds of professionals for your tax preparation. This is because you will usually have to pay the same price but will get a seasoned professional for your taxes.

• Know the different types of tax professionals: there are different types of tax professionals like Enrolled Agents (EA), Certified Public Accountants (CPA) and Tax attorneys. You should know which one does what best.

EAs have to take examinations and go through background checks conducted by the IRS. Generally, they are the ones you should approach for complex tax situations. These professionals are usually specialists in certain tax areas and can be a great help in availing a tax return. Moreover, they can also represent you before the IRS in case you face an audit. 

CPAs are licensed individuals that clear a rigorous CPA exam and are also required to stay up to date with the tax practices. Unlike EAs, CPAs specialize in certain accounting areas. While some CPAs do specialize in tax accounting, not all of them are so. Nonetheless, they are capable of representing you before the IRS.

Lastly, Tax attorneys are lawyers with a specialization in tax law. Usually, they have a postgraduate degree in taxation law. You should look out for them if you have complex legal matters to be taken care of. This is because they are capable of taking your cases to the tax courts. 

• Interview your potential candidates: you wouldn’t want to hand over a bunch of your files to someone you don’t know. So, it is a good idea to interview potential candidates before making your final decision. You should ask questions about the professional himself or herself and also discuss your situation. 

Besides that, it is good practice to request for references from the tax professional. After that, reach out to those references and discuss how their experience of tax returns, audits, and legal matters was with your potential candidate. 

• Take precautions: before hiring someone, make sure you do a quick background check on the person. For instance, search his or her name on social media platforms and see what’s out there. Also, see what others have to say about him or her. 

Moreover, you can also reach out to the state’s board of accountancy in case of CPAs. Check the status of the license of the individual and whether any disciplinary actions have been taken on him or her. In the case of EAs, reach out to the IRS Office of Professional Responsibility for the same. In addition to that, you may also check out the local chamber of commerce.