The Internal Revenue Service Code is confusing, and the rules and regulations change constantly. That’s why so many citizens hire a tax preparer to help them take care of this important responsibility.
Tax preparers may be enrolled agents, CPAs, attorneys, or registered tax professionals. These individuals take at least 15 hours of continuing professional education annually to maintain their designation.
Before hiring a professional to handle your tax paperwork, ask a few questions.
1. Do you have a Preparer Tax Identification Number and have you registered with the IRS?
Individuals who charge a fee to prepare taxes must register with the Internal Revenue Service and receive a PTIN. Other credentials might be impressive, but they won’t be enough for an accounting professional to legally handle your taxes.
As 2290tax clarifies, anyone who intends to file for many different individuals or entities with different EIN’s is considered a Paid Preparer and needs to be registered with the IRS.
2. What kind of returns do you prepare?
Everyone’s tax return will be different. If you have any out-of-the-ordinary income or outgoings, you need a professional who has experience with your situation. For example:
- Are you self-employed?
- Do you own rental properties?
- Are you an investor?
- Has some of your income come from gambling?
- Are you a student?
3. What fees do you charge?
Tax preparers structure their fees differently, so it’s important to know the method a professional uses before hiring him or her. Some of the ways accountants tally their bills include:
- Billing at an hourly rate
- Charging by the number of schedules and forms in returns
- Using a combination of the two above methods
There is fluctuation in fee scales by region, and CPAs charge more than non-CPAs, so take that into account. Also, to save your tax preparer time and yourself some money, organize your paperwork ahead of time. If your tax pro has to sort through your receipts, it will take more time, which will cost you.
4. Will you back me up in an audit?
Be sure to find out what a tax preparer’s policy is if you get audited. Will you have to face the IRS alone, or will your preparer back you up? For example, will he or she:
- Respond to IRS or state tax agencies if they send letters of inquiry?
- Attend an audit with you?
5. Are you available year-round or just at tax time?
Some tax preparers work 12 months a year, so are available to answer questions or help you with tax planning, while others only work a few months each year. Even if he or she doesn’t prepare taxes year-round, find out if there is a way to contact your tax preparer should the need arise.
The individual who prepares your taxes plays a vital role in your financial well-being. Make sure you choose the right professional to meet your needs.
Dana Davis
Latest posts by Dana Davis (see all)
- Understanding How Innovation Creates Successful Businesses [Infographics] - August 19, 2020
- Simple Tips for Improving Your Content Marketing Strategy - August 17, 2020
- How To Protect Your Company from Employment Litigation - July 13, 2020
This article contains relevant information. Very helpful tips in deciding to hire a tax preparer for any business. Thank you for sharing your ideas.
Bella D. would love you to read ..11 Top Reasons You Should Be Self Publishing On Kindle To Make Money Online
Very informative blog regarding the tax I learned a lot.
Thanks for sharing this information.
#4 and #5 are most important question to ask. No one will consider asking such things but these are too important. Hire a full-time tax consultant instead of someone who is only active during tax days.
Thanks for helping me understand that there are tax preparers who are only available for a few months a year that is why we should ask them about their schedule. My sister should know about this since she will be needing their services soon. It is when her dream business has opened, so she needs to file her taxes. As of now, the establishment is still being constructed, and it will be finished in the last weeks of June.
When to Hire a Tax Consultant . Don’t wait until the end of the financial year to hire a tax consultant. You can find and begin working with someone on your business taxes at any time. This article provides some important tips on finding a tax consultant.
Having an experienced taxation team with exposure to different tax regimes in the Middle East, Sub Continent and Europe capable of advising and assisting businesses in the region to improve their systems and processes is critical.
Totally agree!!!!
Best tips for hiring a good accountant for your business and its good for your basic knowledge about accountant…
Thanks for sharing
Its really helpful for us to have an ideas on how to hire a good tax accountant. Thank you for posting this.
Good to have like this kind of article. It gives everyone knowledge in hiring a tax preparer.
Hii
Great article!!
It is true that a tax preparer is a person who is responsible for the preparation of tax return. Tax preparation may be done by the taxpayer without the help of tax preparation software.
Or tax preparers may be the enrolled agents, lawyers, or registered tax professionals that resolve our queries regarding tax audit.
Thanks for the helpful guide! There are a lot of factors that go into filing taxes, but you break it down into easily digestible pieces.
Wow, awesome post! These are certainly some great questions to ask whoever may be doing your taxes, which should only be a certifies professional. Thanks for sharing!
Thanks for the tips. it useful for me in future while hiring a tax preparer for my company, I have zero knowledge in tax preparer after reading this article I get some information. once again thanks for the article.
andy robben would love you to read ..US Taxation
Hello there, Dana, I want to congratulate you for sharing this kinda eyeopener information with us, not everyone knows what really a tax is. So that, your statistics is quietly helpful because it’s easy to understand and to follow.
Richard White would love you to read ..How to Properly Find a Bookkeeper
Hi, Dana, I was really enjoyed reading your stats about taxes preparation. Honestly, I do really need this significant information so that I can able to answer the questions of someone. Thank you so much for the share.
Ruben Frost would love you to read ..Benefits of Outsourcing Your Bookkeeping Needs
Great advice for anyone looking to hire a tax expert. It’s important to find someone who really knows what they are talking about and can break it down for you so you can understand too. Thanks for sharing!
Great info regarding tax.All my doubts regarding tax are cleared after going through your blog.Now i am able to give advice on the tax matters.Thanks for posting!
Great questions to ask before hiring a tax preparer this season. You want to be sure that all hidden fees are taken care of before making that final decision.
Drew would love you to read ..Managing Your Travel and Entertainment Expenses
Hey
Its an amazing blog about tax. It is really important in any business. I will be a great help to me and my husband.
Hey
Great share!!
Here by I am also sharing some tips have a look:
* Be sure to select a tax professional with the appropriate credentials. Enrolled Agents and CPA’s are licensed professionals, guided by a code of ethics set forth by the Internal Revenue Service. We are required to keep up with the constant changes in the tax code through continuing education and this is reported to the IRS.
* Your tax practitioner should have a Practitioner Tax Identification Number and should sign all tax returns.
* You should use someone who is going to be available all year round to answer questions that may come up. There are life changes that occur during the year that may affect your tax situation and you may need someone available to offer advice as necessary, or you may get a letter from the IRS that you may need help to respond to.
Britanny Stoner would love you to read ..6 Tips for Startup Success
I like your advice to ask what kinds of returns the tax planner prepares. Like you said, there can be certain circumstances, like self employment, that can make taxes more complicated. Hiring a professional can help you figure out exactly what you need to do to get the best returns. Thanks for the article.
Hiring an income tax preparation service would be perfect in handling important responsibilities. I am glad to know that remembering your tax identification number can be a help when you go to get assistance on your taxes. Learning more about returns sounds like a good way to get the most back.
Great list of questions that you should be asking before hiring a CPA. You don’t want to rush into hiring just anybody so the more questions you can ask, the better feel you can get for the type of job they will do for you.
Drew would love you to read ..Managing Your Travel and Entertainment Expenses
Preparing my taxes is a stressful experience. I have done them myself in the past, but it just isn’t a possibility anymore. I agree in finding a professional with experience. Great post.
I didn’t realize that a PTIN was required for a business accounting service to legally handle your taxes. I’ve been wondering what it would be like to start a business. I’ll definitely jot this down as a requirement to hire an accounting professional.
what a great and wonderful post, its my first experience and first time reading this and i have full gasp on hiring a tax Preparer,
Thanks alot
In my opinion, it’s a great idea to hire a CPA. I’ve done it in the past, and it helped me get more organized with all my finances. These are some great questions to consider before going into a meeting with one. I think that making sure that they back you up in an audit is a smart question to ask.
Silly though it may seem, I had no clue that a tax Preparer had to be registered with the IRS. This totally makes sense, though. I feel so much better about letting someone handle my finances, knowing that they went through a legal process to make sure that they are on the up and up with the ethics of handling others’ finances.
Thank you for these tips, because I had no idea what to look for. You’d think I would know how to file my own taxes by now, but for the last 10 years I’ve been getting help from my mom. That’s really embarrassing to admit, but I really need to find someone good! Thanks for suggesting to find someone who will back you up if you get audited.
Hi Veronika,
Don’t be embarrassed. Taxes are extremely complicated. If you have a business you may be better off hiring an expert. If you are an employee and file few forms. look into using one of the online programs that guide you through the process and help you find deductions. Try one of them out, and then if you’re uncertain you can save money having a preparer look the forms over.
Gail Gardner would love you to read ..7 Most Important eCommerce Success Metrics #etail
If you’re a student and self employed how much in tax returns do you think should be returned to you? This is my current condition for this year and so far I’m kind of nervous about doing the tax return preparation. Mainly because it’s my first time and also a friend told me that it would be better for me to do this.
Dana, taxes are a confusing process for many people, including me. There are so many different tax forms and options that it can be hard to keep track of. It is good to know that a 2290 is for those who are filing for many different individuals.
It’s really helpful to know what sorts of things you need to make sure are in line before hiring a tax professional. I didn’t know that they had to be registered with the IRS whether they’re an attorney, an accountant or agents. That sounds like a good way to make sure that they understand tax code and that they’ll be able to advise you on tax law matters adequately.
Thanks I needed that information. This was exactly what I needed to read although this is a bit overwhelming…
Super blog…thanks for sharing…its very interesting…
i’m searching for this information from long time…thank you…please share some more interesting posts
Satish Ratna would love you to read ..Hello world!
Awesome collection, Really thanks for sharing Tax information…Actually i don’t no about the tax preparer… I think today i read great info in your blog…thank you.