If you intend to hire a tax advisor to help you with your tax 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 unfamiliar online software program will not only waste your time and money, but will also result in the need to hire another professional, missed deductions, and valuable tax advice. If yours is simple in nature, you might consider skipping the $ 200 per hour CPA and going for someone who is in less demand. However, if you have a complex return that involves multiple trials and those difficult 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 for buying:
Ratings
Most importantly, the IRS urges taxpayers to strictly use tax consultants who actually sign every return they prepare and enter their Preparer Tax Identification Numbers (PTIN). The new regulations require that all paid tax preparers have a PTIN. Also, you should find out if you have any affiliation with professional organizations and attend continuing education courses. In the near future, the IRS will require that preparers who are not CPAs, enrolled agents, or attorneys take an exam 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. Additionally, you can check with the state bar of attorneys as well as the IRS Office of Enrollment for enrolled agents.
Rate service
If the person you select bases their rates on a percentage of your refund, you are probably better off finding 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 1 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 for more than 10 clients must do so. electronically.
Request for records and receipts
Any reliable professional will request all the supporting information and ask you numerous questions to properly determine your deductions. You should also have full access to the person you hire during and even after you have applied in case 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 content of the form. Review it, ask questions, and confirm the accuracy of the data before signing the dotted line. One might assume that each year’s presentation is very black and white, but a tax advisor proves worthy by having knowledge of the gray areas. Based on experience and education, they know best how to interpret IRS judgments.