People say there are only two sure things; death and taxes. Taxes are a fact of life. And not only do we have to pay them, but the rules change yearly! Ugh!!! My accountant is one of my best friends!1 (I mean this literally. He was the best man at my wedding, lol.) I tap his brain frequently for personal and business tax advice. I can follow his explanation, but to keep up with the ever-changing details and try to remember the nitty gritty is daunting at best. That’s why I hire him to do my taxes every year.
I only sometimes needed an accountant. When I rented a townhouse and only had one or two W-2s, I did my taxes with an online service. This service was mainly free (I had to pay a few dollars for the state tax returns). But things can get complicated. Homeownership, investment returns, having dependents, owning a business, etc., can all complicate the process. There is no shame in using an accountant to help navigate the waters of the IRS. Better safe than sorry. Be sure to find a good one. Do your research. Find someone who is a certified public accountant (CPA) or a licensed tax attorney. And make sure they e-file taxes. Since the IRS requires tax preparers to e-file if they do a dozen or more returns a year, if yours doesn’t, it’s a good chance they need to be proficient in the current tax codes. You also want to know if you have someone who will represent you to the IRS if you get audited. They both speak the same language, and they both know the rules. Please make sure they are available after tax season.
And ask these questions:
1. How long have you been preparing tax returns?
- Make sure it’s at least two years.
2. Is there an area they specialize in?
- Make sure you have someone used to dealing with audits and the IRS.
3. How long will it take to prepare your taxes?
- Where are you on the list? This helps you plan.
4. does their office do all the work or do they outsource?
- You want to know who to communicate with.
5. How much are the fees and can you get it in writing?
- This estimate will help with budgeting.
6. Will your information be shared with a 3rd party?
- It is legal for them to sell your contact info. What is their privacy policy?
7. Are you paying too much or too little out of your paycheck or on your quarterly taxes?
- They should be able to advise you in adjusting your paycheck withholding.