Finding a Tax Preparer

I mentioned before that I use a CPA to help out with my tax filings at the office. This drew a chuckle from some of my colleagues, but it’s true. I think that a tax professional is an invaluable resource.

Consider the time value of money alone. Nationally, it costs about $200. Do I love spending $200 on something that, ostensibly, I could do myself and does not involve shoes or handbags? Nope. But getting everything together, getting organized, buying the tax software and preparing the return takes a few hours. In that amount of time, I could have:

- Billed a client for time spent working;
- Made dinner for my family;
- Updated taxgirl.com;

and more.

I run a business, have a household of three kids and a crazy dog – not to mention a hard-working hubby, I blog and I like to have a little time for me left over, too. In short, my time is valuable. Anyway that I can find to shave a little bit of time and agita out of my busy schedule is worth it.

But who do you trust?

This can be tricky. Here are some tips:

1, Choose someone who will stick around. I am not a fan of most bulk tax prep companies because they are gone most months out of the year and I don’t want to call a 1-800 and speak with someone who will inevitably give you the run around if you have a question.

2, Make sure the bottom line is really the bottom line. Do your homework. Don’t be fooled: bulk tax companies are usually NOT less expensive than small shops – and they tend to hit you with fees for “extras” and try to sell you products. If the initial fee is small, ask about add ons, “accuracy guarantees” and more that might cost you money.

3, Ask about qualifications. Only two states (CA and OR) actually license tax professionals. In theory, anyone – including my brothers – could slap a sign on a door and start doing returns. And trust me, nobody wants that. Inquire about education and experience. Ask what those initials on the business cards mean – sometimes, they are more or less junk. And remember that only attorneys, CPAs and EAs are allowed to represent you before the IRS so if you’re concerned about an audit (I mean really concerned), it’s best to stick with someone who can follow up.

4, Get some opinions. It’s weird that people will ask for a proctologist’s name in a heart beat but will often remain tight-lipped about tax professionals. Ask. Ask your lawyer, your investment advisor, your colleagues and your neighbors who they use for tax preparation. Word of mouth is one of the best ways to find a good provider – and a good way to determine who you should avoid. But don’t accept an opinion as gospel, follow-up on your own.

5, Use your gut. If your calls or emails aren’t returned within a reasonable amount of time (keeping in mind that during busy seasons, wait times will be understandably longer), consider going elsewhere. If the staff is rude, if the tax preparer seems pre-occupied, walk away. You’re paying for a service. You deserve to be treated in a professional manner. And finally, professionals who tout large average refunds and other “too good to be true” promises should be avoided. Remember that you’re liable at the end of the day for the information on your return, not the preparer. If the preparer isn’t willing to work with you to make you feel comfortable, find someone who will.

Tax season shouldn’t be painful. Avoid a headache this year by thinking ahead – you’ll thank me for it.

If you have other tips, flags or suggestions for locating a good tax preparer, I’d love to hear them. Leave me a comment!

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tax, tax planning, 1040, tax professionals

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