The Internet has made it so incredibly easy to file a personal tax return; it’s almost funny that tax specialists are still in-demand during tax time. Some people remember their parents doing their taxes back in the day, and they were unable to eat dinner sitting down due to the stacks of papers scattered all over the dining room table. Add that to a very cranky father, and the tax professionals might just have your business forever.
But sometimes you need to hire a professional, like an accountant. If you own your own business, are a freelancer (considered a contract worker), or have another situation which requires more than a 1040 form and corresponding booklet, you might want to hire a such a tax specialist.
Accountants need to be looked at similar to lawyers. Even though a lawyer needs to know the law, each specializes in a different area. Would you really want to hire a real estate lawyer if you were on trial for murder? Of course not! The same holds true for accountants. For example, if you’re a freelancer you should hire an accountant that specializes in contract professions. But on the same token, hiring more of a tax pro than you need could mean a pricier bill than you wanted to pay. Here are a few more tips to help pick your perfect accountant.
First, no accountant or other tax professional should be paid on a “refund” commission basis (the standard rate is per form filled out). Not only is this practice unprofessional, it’s also illegal. Hiring this type of accountant is just asking for trouble, and remember this: “If they get it wrong, you pay the penalty!” And if they refuse to sign your return, it should be your sign.
Ask your similar tax situation friends whom they use (and ask if they like them).
Next, ask the right questions. Like every other profession, those in the tax business love to talk about themselves. As them about their licenses, specializations and fees in addition to who will actually be filling out the form (and therefore signing it) and ask for a copy of their privacy policy.
Don’t forget to ask how long it will take to complete your tax return and if they have the capabilities to e-file.
Finally, after all is said and done, you’re not. Check with your state’s licensing board or do a search online to see if any negative press is associated with your new tax guru. A little homework now can save you a lot of unnecessary work, time, aggravation, not to mention money and legal battles later.
