| The best way to find a tax preparer is a referral. The | | | | little quirks; the local guys are up to speed on. An out |
| personality fit is very important. You are looking for | | | | of state preparer either takes a lot of time to come up |
| someone you can talk to about money. That is a | | | | with the answers or misses the little stuff. |
| touchy subject and needs a high comfort level. You | | | | Ask how the fee is determined. Some do it by the |
| need to look for basic competence; your preparer | | | | hour some by the schedule. Ask for an estimate. If it is |
| should know the easy stuff without looking it up. | | | | based on a per form fee schedule ask for a copy of |
| Beyond basic questions consider asking about some | | | | the fee schedule. Look at your last year's tax return |
| of the following issues. | | | | and determine what it would have cost based on their |
| Not only should you ask how many tax returns an | | | | fee schedule. The prior year's tax preparation fee is |
| accountant does but also "what kind?" If you are a | | | | usually listed under miscellaneous itemized deductions. |
| schedule C taxpayer you need a preparer who does | | | | Tax preparers, who are asked for an estimate, will |
| a lot of schedule "Cs". Don't let them off the hook | | | | ask to look at the form and casually glance at what |
| when they give you a general answer like, "Oh, we do | | | | you paid in the prior year. Few will charge less. Ask for |
| a lot of them" their tax software keeps track of such | | | | their fee schedule and do the calculation yourself. Then |
| things and they should know an exact number. | | | | ask if that sounds about right. |
| The next critical question is "who does the work?" If | | | | Lastly you might ask what happens if you get into an |
| the tax preparer you are talking to delegates all the | | | | audit. The chances are remote but it does happen. |
| work to some kid in the back room fresh out of | | | | Some firms offer, "audit insurance". This "audit |
| school, the $175 per hour fee is not justified. There are | | | | insurance" is normally not a good economic deal for |
| some firms who are even subcontracting out tax | | | | the taxpayer. Just ask how many audits they have |
| preparation to India. You also might note US laws on | | | | had on taxpayers in the last three years. Again do not |
| confidentially are not enforceable in India. | | | | be put off by a general answer. They know the |
| Generally a good tax person should be able to | | | | number, there are not that many of them. |
| suggest something to you. There has to be something | | | | Don't confuse a notice with an audit. If you do get a |
| about your financial situation related to taxes deemed | | | | notice, and they are common, audits are not, what |
| worthy of their comment. | | | | happens? Will the tax preparer answer the notice as |
| At the other end of the spectrum be very wary if the | | | | part of preparing the tax return? |
| tax preparer makes many suggestions and also sells | | | | Tax accountants are a straight-laced bunch. If they |
| things. Like refund anticipation loans, brokerage, | | | | have been around for a while they have seen a lot of |
| insurance or other financial investments. This is a | | | | the problems including the ones similar to yours. They |
| conflict of interest and it taints their advice. You want | | | | can be a very valuable source of expertise. Just make |
| them on your side fighting the IRS not thinking about | | | | sure they are on your side and have no conflicting |
| how to make commissions out of your pocket. | | | | loyalties. |
| Find out if they handle multiple states. If you are nearing | | | | One final thought, when you find someone you are |
| retirement and moving to Arizona do they have the | | | | happy with stick with him or her. Their value grows the |
| capability to do the home state and the new | | | | more years you deal with them. They come to |
| retirement state? A permanent move normally | | | | understand your situation, goals and problems and over |
| requires a change of tax preparer. State laws have | | | | time they can give you helpful advice. |