Different-sized accountants serve different purposes. Some of them collaborate with corporations, while others help people. Some people pay taxes regularly, while others never do. Although most are CPAs, anyone can be a competent tax accountant. Some of them are untrained bookkeepers. Some can communicate with the IRS on your behalf and submit your return electronically. Finding a good tax preparer might lighten your load come tax season. Getting a tax preparer isn’t difficult, but getting a good one is another story. Here are seven things to look for in a qualified tax preparer.
1. Is the Candidate IRS-approved?
Three distinct accounting specializations exist. To begin, there are untrained or somewhat trained bookkeepers. Second, the IRS recognizes those who have taken the Enrolled Agent exam and have become Enrolled Agents. Last but not least, there are Certified Public Accountants (CPAs) who have a bachelor’s degree in accounting, have passed the CPA exam, and have worked as accountants for at least two years. Due to the prevalence of “backyard accountants,” it might be challenging to determine whether or not your tax preparer is legitimate.
When it comes to problematic tax preparers, regional IRS employees usually have a good idea of who to look out for. If you wish to submit your taxes electronically without drawing the notice of the Internal Revenue Service, you should look for tax preparers who have been granted this privilege. The IRS verifies the backgrounds of tax preparers and keeps fingerprints on file. The preparer’s individual tax history is checked, and the preparer’s business history is verified with local authorities. These tax experts are easily recognizable by the little yellow lightning bolt insignia that appears in their advertisements and on their stationery.
2. Do some digging on their history.
Don’t hire just any tax preparer to handle your returns. You should consult with potential candidates before hiring a tax accountant NYC. Make three phone calls and schedule one-hour interviews with each. If an accountant really wants your business, he or she will meet with you for free. When did they first open their doors? How many of their customers have been subjected to audits? What is their experience with auditing? How did they deal with it, if at all? Professional tax preparers will have no trouble responding to these inquiries. Have they ever been disciplined by the AICPA if they are CPAs? Inquire about the company and the applicant in writing. Finally, do they seem like someone who could represent you well?
3. Are they certified public accountants (CPAs)?
Is their CPA status verified by a valid license? If your accountant claims to be a CPA, you can verify with the state’s board on accountancy whether or not they are indeed licensed to practice. If you want to know if he has ever been disciplined, you can do that, too. Members of the AICPA (American Institute of Certified Public Accountants) make up the vast majority of CPAs. You can check with the AICPA to see if your company is registered if you’re not sure.
4. Have a look at the Accounting Company.
How often will you interact with the company’s CEO, and when will you be working with the team? Is it possible for you to meet your representatives? Can you explain the company’s pricing structure? How are add-ons (things like an audit) dealt with? Will there be a contract outlining the firm’s services?
5. Do you have faith in the candidate?
If you are ever audited by the Internal Revenue Service, it is imperative that you hire an accountant you can have complete confidence in. Verify that the candidate will investigate the particulars of the tax code and your own financial situation. Read everything thoroughly before putting your signature on it. No matter who produced your 1040, you are ultimately accountable for the accuracy of the information it contains. Before you put your signature on your tax return, double-check that all of the information is correct.
6. Are They Easily Reachable During Tax Season (and Beyond)?
The tax season is a very hectic time for accountants. However, tax problems aren’t limited to April. Determine your accountant’s level of involvement after the April 15th deadline.
7. Make Sure You Verify the References.
It’s important to seek advice from reliable sources. When it comes to tax accountants, a good reputation is crucial. Call your three references. If the candidate can’t produce solid references, go on to the next one.