How to Find a Reliable Tax Preparer

Asking for referrals is a great way to find an experienced and qualified accountant. If you’re like most Americans, the thought of filing your taxes is daunting. See the taxes your business could owe.

Obviously, you want someone who has the right experience for your particular needs who can work at a price you can afford. First, figure out whether you actually need the help. These tips can help you locate a reputable professional and avoid problems

What Are Your Rights if You Get in Trouble With the IRS Because of an Error by Your Tax Preparer?

With a more secure, easy-to-use platform and an average Pro experience of 12 years, there’s no beating Taxfyle. When you use Taxfyle, you’re guaranteed an affordable, licensed Professional. Taxfyle connects you to a licensed CPA or EA who can take time-consuming bookkeeping work off your hands. Get $30 off a tax consultation with a licensed CPA or EA, and we’ll be sure to provide you with a robust, bespoke answer to whatever tax problems you may have. If you have any further questions, why not talk to a Pro?

Certified Public Accountants (CPA), Enrolled Agents (EA), and tax attorneys are the highest credentials that a tax preparer can possess. A tax preparer with a PTIN—and no other credentials—is known as a non-credentialed preparer. The big chains employ many preparers, and if you‘re in a crunch, that could help you schedule an appointment more quickly than an individual who might be booked through April 18, tax day. If you have a simple return, meaning a 1040 without a lot of deductions, you can usually do your own taxes.

For Businesses

You can connect with a licensed CPA or EA who can file your business tax returns. Once you’ve identified a few potential accountants and checked their credentials, it’s time to make your decision. If your tax preparer made an error that leads to a higher tax payment, ultimately you’re on the hook to pay it. While these services are often legit, so-called ghost preparers will refuse to sign the tax returns they prepare. Make sure the preparer offers an IRS e-file and ask to e-file the tax return. The more time a preparer has been working on tax returns, the more likely it is that the preparer will have dealt with a tax situation similar to yours.

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If you hire a tax professional without these qualifications, you could find yourself facing an audit without the help of a qualified representative. Certified Public Accountants (CPAs), Enrolled Agents (EAs), and attorneys are the only tax professionals with the credentials to represent you in an audit. While no one expects an audit, it’s always a good idea to hire an accountant who can represent you in case the IRS comes knocking. You’ll be working closely with your tax accountant during tax season and potentially throughout the year, so finding someone whose personality aligns with yours can make the process much smoother. Look for a tax professional who is accessible and responsive, ensuring that you stay in the loop throughout the entire tax preparation process.

The average itemized Schedule A federal and state return cost $323. You can also ask for a list of fees for various types of tax help to give you a better sense of the possible costs you’ll be facing. However, don’t give the actual tax documents or provide Social Security numbers or other information when merely inquiring about their services and fees. If something goes wrong with a filing, they have limited rights to represent you before the IRS. Prices vary depending on the complexity of the filing or the services required. H&R Block’s “File with a tax pro” starts at $80 and can be done in-person or virtually.

• “The cost of preparing a tax return will vary depending on many factors, including the complexity of the return,” says Susan Allen, CPA/CITP, CGMA, senior manager for Tax Practice & Ethics, American Institute of CPAs.
• Look for a tax professional who is accessible and responsive, ensuring that you stay in the loop throughout the entire tax preparation process.
• Once you’ve identified a few potential accountants and checked their credentials, it’s time to make your decision.
• In many Hispanic neighborhoods, travel agencies, insurance agencies, and others will prepare and file your taxes.
• Taking the time to list your needs will help frame your search and choose the right person.
• If the IRS suspects that a preparer’s actions are shady, their clients’ returns may be subject to special review.

From helping you file your tax return accurately to explaining complicated concepts, a good accountant brings leadership skills, problem-solving abilities, and personalized service to the table. Hiring an accountant to prepare taxes for your small business can be empowering and liberating. According to the Internal Revenue Service (IRS), “Most tax return tips for finding the right tax accountant preparers are professional, honest and trustworthy.

When Should You Hire an Accountant?

The odds are you are going to face a number of difficult tax-related decisions over time, so you need to feel comfortable asking your accountant what you may feel is a stupid question. You might only want to spend this kind of money the first time you exercise your options to ensure you don’t run afoul of issues like the Alternative Minimum Tax (AMT) and quarterly estimated taxes. Like most people, you’re probably not sure how to choose a tax accountant. It is not as easy to quantify the savings from hiring a tax accountant as it is from hiring an estate planner (see our recent post by Abe Zuckerman regarding Estate Planners), but it’s just as necessary. We realize this means you will incur a fee, but it is highly justified given the risk you take on incurring significant unforeseen taxes if you don’t consult a great tax accountant. While you don’t want to cut corners when it comes to doing your business taxes, you also don’t want to put yourself in debt.

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Paid tax preparers are required by law to sign your return and provide their PTIN, so be sure that your preparer signs on the dotted line. Storefront preparers such as H&R Block and Liberty Tax often employ an array of tax professionals, primarily enrolled agents, CPAs, and attorneys. Finding an accountant to file your taxes is a big decision.

What can the client do to keep their fees down?

The preparer may agree to handle follow-ups like this, and to represent you before the IRS in these cases. However, you can appeal to the IRS for a reduction in penalties, noting that the additional liability was due to a preparer’s error. And remember, never sign a blank or incomplete return. Search for complaints against the preparer with the Better Business Bureau.

• Look for a preparer with lots of experience.
• Whatever your questions are, Taxfyle’s got you covered.
• While you don’t want to cut corners when it comes to doing your business taxes, you also don’t want to put yourself in debt.
• To get a real sense of what’s out there and what different professionals have to offer, you should plan on interviewing multiple accountants.
• It’s a good idea to find a preparer accustomed to working with people who have similar financial profiles to yours.

Annual filing season program participants and preparers without any special designations charge the lowest fees. If you visit one of these preparers, you will likely be assigned to an individual whose skills align with the complexity of your return. You can search for a preparer by credentials, ZIP code, and distance from you—or confirm a tax preparer’s credentials. It includes attorneys, CPAs, enrolled agents, and annual filing season program participants, but not preparers with a PTIN and no other credentials. But if you pay for this service, the person must be registered with the IRS and have a current preparer tax identification number (PTIN), an IRS number issued annually to qualified preparers. More than 55% of U.S. taxpayers use paid preparers, according to data from the Internal Revenue Service (IRS) as of December 2021.

You may have previously filed your own taxes as an individual. If you’ve worked with a preparer and your return is ready to submit, make sure that the preparer’s PTIN and signature are included and that you receive a copy for your files. To make the best use of your preparer’s time—and to keep your bill to a minimum—be sure to gather all the information you need and make a list of your questions before you meet. Attorneys, certified public accountants (CPAs), and enrolled agents have unlimited representation rights before the IRS. However, if you’re paying someone for this service, they must be registered with the IRS and have an active preparer tax identification number (PTIN). That includes whether you might want the preparer to represent you if the IRS raises any questions concerning your return.

By keeping these traits in mind, you can find a tax professional who will not only help you with tax preparation but also provide valuable financial planning support for your small business. The right tax preparer will show a genuine interest in understanding the ins and outs of your business’s finances, including financial data, financial statements, and other financial information. While personal taxes might feel straightforward, especially when you’re using tax software or filing on your own, business taxes are an entirely different ballgame. Hiring a tax preparer can be a game-changer, especially when you’re managing complex financial data, dealing with a tricky tax situation, or simply trying to avoid mistakes that could cost you down the line.

“The cost of preparing a tax return will vary depending on many factors, including the complexity of the return,” says Susan Allen, CPA/CITP, CGMA, senior manager for Tax Practice & Ethics, American Institute of CPAs. The cost of preparing your taxes can vary, but generally an EA should charge less than a CPA, according to the Better Business Bureau. Sometimes, tax-prep offices appear during tax season and then close once the season ends. These are also non-credentialed preparers, however, each year they must take 18 hours of continuing education classes from IRS-approved providers.

After a one-month free trial, account holders will be charged $18 per month for the next three months, then $30 per month thereafter. Share a few details including business type, EIN and industry. Don’t take our word for it, open a Lili account today and enjoy a 30 day trial of Lili Pro, Smart, or Premium! Armed with some good background information, you’re ready for some conversations.

You can check the credentials of most CPAs using CPA Verify, an online central repository of information about licensed CPAs and public accounting firms. We’ll connect you to a CPA or EA who will handle your income tax preparation from start to finish. However, don’t settle with the first suggestion you get. Likewise, if you have foreign investments or face other specific tax challenges, you’ll want to look for someone with the appropriate knowledge and expertise.