Before you hire a tax professional, you should sit down with them and conduct a small interview to help you decide whether or not they are right for you. Sometimes, tax professionals may be more knowledgeable in one area than the next and you need to know that you are working with one that understands your unique situation.
Below, we will go over some questions you should ask your tax professional before you settle and choose them.
You should ask all potential tax agents what type of tax background they have. You want to know that you are working with someone who has all of the skills you desire.
Sometimes, tax professionals take additional courses and tests to prove they have knowledge and expertise in other areas of the financial industry. Ask the professional you are talking to what types of additional training he or she has.
Some new tax preparers may not know all of the laws in the city and state that you are filing in. You want to make sure they know all the laws regarding taxes and tax situations.
For instance, if you sell items online, you need to know how and when to collect sales tax. Your tax agent should know the nexus laws and be familiar with sales tax in the state you reside in.
All tax preparers must have a PTIN or preparer tax identification number. If they do not, they are not legally allowed to fill out and sign your tax return for you. You need to make sure they have this number BEFORE you begin working on your taxes with them.
If you want to electronically file your taxes, you should make sure that the company or agent you are working with is able to offer this service. By e-filing, you will receive your refund faster than if you filed a paper application. In addition, you can monitor the status of your electronic filing, whereas, you cannot track the progress of your paper application.
Sometimes, you may be able to pay for tax services once your tax refund is received. You will typically need to sign a document allowing the company to deduct the funds from your return.
If you are not able to deduct the service fee from your tax refund, you will usually pay it once your taxes have been e-filed.
Your tax agent should have a list of information that he or she needs from you. For instance, if you plan on claiming the child tax credit, you will need to have your children’s social security numbers with you. If you do not have them on hand, you will not be able to complete your tax return.
In addition, you may need your previous year’s tax return and other supporting documentation such as 1099s, W-2s, and the like.
Tax deductions and credits will help you so it is important that the agent you work with understands what credits and deductions are available to you.
For example, if you own a small business, it would be helpful to work with an agent that is experienced in small business deductions. You do not want to leave any money on the table and if your agent is not knowledgeable, you may miss some deductions you could have capitalized on.
If you need to have a special tax return filled out or you have a unique circumstance, make sure that the tax preparer has filled out similar returns before. You should never work with an agent who does not seem to be experienced in the area you need him or her to be knowledgeable in.
If you are looking to hire a professional tax agent to help you fill out and file your taxes, ask the above eight questions during your interview with available professionals. You want to know that you are hiring the best and you should never settle for anything else.
One last thing to keep in mind is that the fees you pay should be reasonable and you do not want to work with a company who does not plan to provide you with a copy of your tax return.
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