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.
The following are tips to help you search for the right professional from TaxTerminal.com:
> Note that you still have the ultimate responsibility for your tax return, and not your accountant.
> Referrals are still your best bet.
> Be wary of accountants who say you can deduct everything and promises you'll get a huge refund.
> Retail tax franchises employ competent tax accountants who can handle relatively straightforward returns. Some tax preparers vary in terms of experience, and there can also be CPAs and Enrolled Agents working here.
> Local, independent tax firms often concentrate on individual and small business tax returns around the area. See if they are experienced in handling your tax situation.
> Enrolled agents are tax professionals who have passed IRS-administered written and background tests. EA's usually specialize in intricate tax situations.
> Certified Public Accountants (CPA's) are accountants who are licensed by the state after passing the CPA Exam. CPA's focus on a particular area related to accounting. While some of them are experts in tax accounting, not all CPA's work with tax cases. CPA's can also represent their clients during an IRS audit or collection.
> Tax attorneys are lawyers specializing in tax laws. > Tax attorneys, on top of their juris doctor degree, also have a taxation master of laws degree. Of course, attorneys are the ideal choice for those whose tax situations require legal expertise, like estate tax return preparation or when your case has to be taken to the US Tax Court or .
What You Should Know About a Tax Accountant
The tax industry never ceases to evolve, and tax professionals are government by several state and federal 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?
> What tax issues are you a specialist in?
> Do you have the knowledge and experience required for my tax situation?
> What fees do I pay?
> Do you outsource certain areas of your work? Are the one who personally attends to the job? If not, what is the review process like and who signs the returns?
> About how long does it take you to finish my taxes?
> What is your policy on privacy?
After the interview, make a quick background check of your prospect. To find out the status of a Jackson Heights CPA or to know if he is or was the subject of a disciplinary action, contact your state's board of accountancy. As for enrolled agents, check with the IRS Office of Professional Responsibility to check for disciplinary action that the EA may have been subject to disciplinary action. Check out http://en.wikipedia.org/wiki/Tax_accounting_in_the_United_States to read more about tax accounting.
