10 Things You Should Know Before Hiring A Tax Preparer

10 Things You Should Know Before Hiring A Tax Preparer

It is never an easy task to do your taxes and most people prefer to hand it over to someone else. If you are one of those people, then you must know a few pointers before hiring a professional to prepare your taxes. After all, these are your taxes and need to be handled with caution or you could end up paying much more than necessary. We have listed below the following questions you must always ask a tax preparer before hiring them:

 Do You Have A Preparer Tax Identification Number?

What is most necessary to know about any tax preparer is whether they are legally qualified to do the job. You must ask them if they are registered with the Internal Revenue Service, and whether they have a preparer tax identification number.

Any professional who charges fees for preparing taxes must have a preparer tax identification number as he is considered a paid preparer who is filing for another entity.

Do A Background Check

Who doesn’t like snooping around a bit? Hone in on your detective instincts and conduct an investigation into the tax preparer’s history.  You should investigate the preparer’s background with the Better Business Bureau and check the IRS office of enrollment and state boards of accountancy for any disciplinary actions.

Ask him about his credentials and how relevant are they to prepare your taxes.

Have You Done This Before?

There is no harm in asking a tax preparer exactly what all kinds of tax forms he has prepared. This gives you an idea of his experience and ability to handle the situation.  There are a number of different kinds of tax forms available nowadays and some tax preparers may be more skilled in handling certain kinds like for a small business or international taxpayers. It is important to find someone who has experience in handling your particular tax forms and situation.

Do You Know All The Rules Of My State?

Suppose you have a business in another state and you live in another state. The tax rules will be different for both states and unless your tax preparer is aware of the distinct rules, your situation could get complicated.

Question the tax preparer regarding his knowledge of tax rules in the state you require as well as the documents that are required for filing.   

What Are The Fees You Charge?

You must get an idea of how a tax preparer decides his fees so that you can estimate his costs beforehand and try to avoid any unnecessary expenses. Some tax preparers’ bill by the hour or charge according to the number of tax forms that need to be prepared. Each region also has a different fee schedule so make sure you note that as well. Try to have all your paperwork and documents organized beforehand as the tax preparer will charge you more for sorting through all that.

Do You Offer Electronic Filing?

This is one of the most crucial questions, as any paid preparer who has prepared and filed more than ten returns must do so electronically. Ask him if he knows about Internal Revenue Service e-files.

Will You Sign My Return?

You must make sure the tax prepare agrees to put his preparer tax identification number on the return as well as his signature. If he refuses to sign the return, you should not hire him.

Will I Receive A Copy Of My Return?

The answer should be yes and the copy should be available within a stated period of time after your meeting with the paid preparer. It is imperative to keep a copy of your returns so you must insist on this point and make sure the tax preparer can complete your returns on time.

When Are You Available?

You must make sure that the tax preparer is available for further inquiries and questions even after the tax returns have been filed. Ask him or her whether he works all year or just for a specific few months. Even if he does not work all year, make sure you have a way of contacting him. Otherwise, it is time to hire a different tax preparer.

 Will You Be Able To Handle An Audit?

In an ideal situation, if all goes well you will not have to face an audit. However, in case some mistake occurs and you are made to undergo an audit, will the tax preparer be ready to help you. Ask him how he would deal with the Internal Revenue Service and what kind of questions they can ask. Question him as to whether he will be willing to represent you and what will his additional costs for this be.