All About Tax Accounting
How to Choose a Tax Accountant
It's important to find a tax accountant who is experienced in tax situations that resemble yours. For instance, if you're under audit, hire a tax accountant who has taken care of many audits before. Visit http://www.huffingtonpost.com/mike-mcderment-/take-the-tax-out-of-taxes_b_9019044.html
for more info about tax accounting.
Here are tips that can help you find the right professional:
> Note that you still have the ultimate responsibility for your tax return, and not your accountant.
> Referrals are still your best bet.
> Careful with anyone who tells you everything can be deducted and promises to get you a large refund.
> Retail tax franchises have competent tax accountants who can file relatively simple tax returns. Some tax preparers vary in terms of experience, and there can also be CPAs and Enrolled Agents working here.
> Local, independent tax firms usually focus on individual and small business tax accounting within the area. Ask if they have the expertise to take your case.
> Enrolled agents are tax professionals who passed both written and background tests given by the IRS. EA's are usually specialists in complex tax cases.
> Certified Public Accountants (CPA's) are accountants who are licensed by the state after passing the CPA Exam. CPA's specialize in a specific area that is related to accounting. Although some of them are tax accounting experts, not all CPA's handle tax cases. CPA's may also represent clients when they are audited by the IRS or during collections.
> Tax attorneys are lawyers specializing in tax laws. > Aside from the required juris doctor degree, tax attorneys have a master of laws degree in taxation. If your case involves complex legal issues like estate tax return preparation or when your case must be brought to the US Tax Court, attorneys are the best.
Check out this site: Hispanic to know What to Ask a Tax Accountant
Changes in the tax industry are never-ending, and tax professionals have to abide by many federal and state regulations. Make sure to ask your prospective tax accountant questions like:
> What designations or licenses do you have?
> How long have you worked in the business of tax accounting?
> In which tax issues do you specialize?
> Do you possess the knowledge and experience needed to handle my tax situation?
> What fees will you charge?
> Do you outsource any part of the job? Are the one who personally attends to the job? If not, what is the review process like and who signs the returns?
> Approximately how long will you take to complete my taxes?
> What is your policy on privacy?
Give your prospect a quick background check after the interview. Check with your state's board of accountancy to know the status of a CPA you might be considering, or to find out about any disciplinary action taken against him. For enrolled agents, inquire from the IRS Office of Professional Responsibility if the EA may have been under disciplinary action. Visit www.TaxTerminal.com to see other options.