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Picking a Tax Accountant - Seven Things You Should Know
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Introduction.
Accountants come in all shapes and sizes. Some work with businesses, some work with individuals. Some do taxes, while others never do taxes. Many are CPA's, but you don't have to be a CPA to be a good tax accountant. Some are bookkeepers with little or no formal training. Some are authorized to work directly with the IRS, and to file your return electronically. Finding the right tax preparer can ease your burden at tax time. While finding a tax preparer isn't too hard, finding a good one can be a challenge. Here are seven steps to consider, when looking for a good tax accountant.

1. Is the Candidate Authorized by the IRS?
There are three types of accountants. First, there are bookkeepers who have little or no formal training in accounting. Second, there are enrolled agents who have passed the EA exam and are licensed by the IRS. Finally, there are Certified Public Accountants (CPA's) that have an accounting degree, have passed the CPA exam, and have at least two years of experience in their field. Because there are tax preparers without any formal license practicing in the field, it can be difficult to find out if yours is one who you can trust. Regional IRS staffers often know who the problem tax preparers are in their districts. To avoid attracting unwanted attention from the IRS, look for tax preparers authorized by the IRS to file electronically over the Internet. The IRS subjects these tax professionals to criminal background checks, and even keeps their fingerprints on file. They also check the preparer's personal tax record, and check with regional officials about their business record. You can identify these tax pros by the little yellow lightning bolt logo in their ads and on their stationary.

2. Research Their Background.
Don't trust your taxes to just any tax preparer. Before you decide on a tax accountant, meet with them and ask questions. Call and set up an hour-long appointment with at least three candidates. Any accountant desiring your business will agree to meet you without charge. How long have they been in business? How many of their clients have been audited? Have they (themselves) ever been audited? If so, how did they handle it? Experienced tax preparers will be able to answer these questions with ease. If they're a CPA, have they ever been sanctioned by the AICPA? Ask for written information about the firm and the candidate. Finally, does the candidate come across like a person who could adequately represent you?

3. Are they CPA's?
If they are CPA's, are they licensed? If your accountant is a CPA, you can contact your state's accountancy board and find out whether your CPA is indeed licensed. You can also find out whether there have been any disciplinary actions taken against him. Most CPA's are members of the AICPA (American Institute of Certified Public Accountants). If yours is, you can write to the AICPA and inquire about their record.

4. Check out the Accounting Firm.
In what situations will you work directly with the head of the firm, and when will you work with the staff? Can you meet the people who'll represent you? How does the firm bill for its services? How are extras (like an audit) handled? Will the firm provide a written agreement to define their services?

5. Can You Trust the Candidate?
Find an accountant you can trust, because you will be sharing all your financial secrets with them, and they will represent you before the IRS, if you're audited. Make sure the candidate will research the details of the tax laws, and your financial background. Look things over carefully before your sign anything. You are responsible for the information on your tax returns, regardless of who prepared your 1040. Make sure the information on your return is correct, before you sign on the dotted line.

6. Are They Accessible at Tax Time (and after)?
Tax time is a busy season for tax accountants. However, tax issues can happen at any time of year. Find out how hands-on your accountant will be after the April 15th deadline.

7 Ask for References.
Get recommendations from people you trust. Reputation is important, when it comes to tax accountants. Get three references, and call them. If references are not provided, then try another candidate.

Vern Beatty is an engineer who writes articles about business and the internet.

For more information on accounting topics, please visit: http://accounting-tips.blogspot.com/

Article Source: http://EzineArticles.com/?expert=Vern_Beatty

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Article Submitted On: May 21, 2007



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