Welcome to tax season. Let me offer you two words of advice for starting the tax season off right: Get help.
I have two tax-related businesses. And I will tell you, I do not prepare my own taxes. I believe strongly in the adage, "The lawyer who represents herself has a fool for a client." That cliché applies to tax professionals, too. I spend all day, every day talking about taxes, reading about taxes, teaching people about taxes. But when tax season rolls around, I gather up all my tax records and head straight to my tax preparer.
I am fortunate enough to have a fantastic tax professional, and I have worked with him for years. However, I have also heard horror stories from people who were not so lucky. It isn't always easy to tell the good preparers from the less-than-qualified ones. Many states don't even regulate who can call themselves a tax preparer, leaving you struggling to find decent help. The IRS does have plans to create national licensing requirements, but those could be years off.
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So, how do know your tax professional is a good one?
- Get referrals. Ask for referrals at professional networking
events, through your professional associations and even from your business
neighbors. Talk to other business owners in your area; find out if they have
a tax preparer they like. Get a few names, then plug them into Google or an
online review site such as Yelp.com. Those reviews can help you see a wide
variety of experiences people have had with that professional. Just remember
to take everything you see and hear with a grain of salt.
- Visit the office. Once you have a handful of referrals, drop by
their offices. If a tax preparer cannot keep an office organized and running
smoothly, how well do you think your taxes will be prepared? Is the
environment calm and professional, or is it chaotic? Do there seem to be a
lot of disgruntled clients or complaint calls? Appearances can be deceiving,
but if the office is in a general state of squalor, you may not want that
professional filing your taxes for you.
- Interviews. In-person interviews are absolutely crucial to
finding a good tax preparer. Have a list of questions ready and pay
attention to the answers, both what is said and what is not said. Ask about
the tax professional's schedule and availability during tax season and
beyond. Will the preparer be available if you need help in June? Especially
important, ask how many business owners the preparer has as clients.
Business taxes are complex, with specific deductions and credits for which
you might be eligible. But a tax preparer who has not done business taxes
may miss them entirely, costing you money. Ask about your prospects' ongoing
education and training. Taxes change every year, so keeping current is
important. Don't just take the tax professional's word for it. Ask specific
questions: What classes? When did she take the courses? Ask about recent tax
changes that apply to you.
- Beware promises. Any time you talk to tax professionals, be wary
of any guarantees or promises they can't possibly keep. For example, how can
they guarantee you a refund without ever seeing your financial documents?
Are they talking about using any tax techniques that seem questionable? If
it sounds too good to be true, it usually is. If your tax preparer makes any
incorrect or fraudulent claims on your tax return, you are ultimately
responsible for them. If the IRS audits you or finds you owing more in
taxes, it's you who'll end up paying the penalties, not your tax preparer.
- Cheapest is not always best. Of course you must consider how much
a tax preparer is charging; after all, we're in a recession. We all want the
best deal, but this is not the place for bargain-basement prices. When it
comes to tax preparers, remember that you are paying for experience and
expertise. Don't automatically choose the lowest price. By the same token,
just because someone is expensive does not necessarily mean she is the best,
or the best for your situation. Do your homework, ask questions and choose
the best preparer you can find, not necessarily the cheapest.
Finding qualified help with your taxes is simple to do, and it will save you money.




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