Tax time is coming! And, unless your taxes are super simple,
it’s probably in your best interest to hire an accountant to act as your tax
preparer. In fact, even if you think your taxes are easy enough to do on your
own, hiring a tax preparer is a wise decision. These experts can ensure you get
the maximum savings possible when you file.
However, it’s important to understand that not all
accountants are created equally and that you’ll want to be selective about who
you hire. You need to find someone you can trust and someone who knows the ins
and outs of tax law. Fortunately, finding that person isn’t as difficult as you
might, not if you know how to go about it.
Credentials Count
To begin with, you absolutely want to choose an accountant
who has all the right credentials. Look for an accountant who has a “preparer
tax identification number” (PTIN) that has been provided by the IRS. The IRS
requires all people who offer tax preparation services to apply for one of
these identifying numbers, so if your tax preparer doesn’t have one, run away!
As for other qualifications, you’ll want to make sure that
your tax preparer is, at the very least, “registered,” which means he’s
completed basic training, or, even better yet, an “enrolled agent.” This second
qualification means the tax preparer has passed an IRS exam and is regularly
educated in relevant areas. You can also, of course, go with a certified
accountant who has received his certification by completing all of your state’s
requirements.
These credentials can really tell you a lot about the
quality of the tax preparer or accountant you are thinking of using, and by
checking up on them, you’ll protect yourself from getting scammed or dealing
with a tax advisor with a bad track record.
Be Wary of Inflated
Costs
Every tax preparer or accountant is going to charge you a
fee for his or her services. That’s normal. However, some people are all about
the money and will attempt to get as much as they possibly can from you.
Obviously, you want to avoid an accountant who cares only about money and
doesn’t really put your best interests first.
Do your research and educate yourself on the going rates of
accountants in your area. That way, if you get quoted a heavily inflated price,
you’ll know it and can go elsewhere.
Also, bear in mind that the IRS advises against using tax
preparers who base their fees on your expected tax refund. They’ll often report
false information in an effort to make your refund and, thus, their paycheck
higher!