| 4 Critical Things You Should Demand From A Tax | | | | three months out of the year and spend the |
| Professional | | | | balance of the time preparing books, records and |
| 1.COMPETENCE AND CREDIBILITY | | | | financial statements. This makes it very difficult to |
| It is very important that you research the | | | | keep up with the ever-changing tax law, especially |
| credentials of the person you have preparing your | | | | on a part-time basis. Between February 1st and |
| taxes. Look for credentials such as enrolled agent | | | | April 15th, the average tax preparer completes |
| or CPA, which will give you some assurance that | | | | about 480 returns. With this overwhelming |
| the preparer has had adequate education and | | | | workload it is nearly impossible for an accountant |
| meets ethical standards. Also, make sure that the | | | | to take the time during tax season, to thoroughly |
| tax preparer you choose can and will take the | | | | evaluate your tax situation and find all the latest |
| time to research any issues they may not be | | | | tax laws and guidelines that can be applied, to help |
| familiar with. They need to be able to call an | | | | reduce your tax liability. |
| expert, or have access to technical resources | | | | Find a tax expert that not only keeps up with |
| that can help answer any questions they may | | | | current tax laws and changes, but also is not |
| have. | | | | under the same time crunch and pressure. This |
| In addition, use a reputable tax preparer that | | | | way they can take the time to closely scrutinize |
| signs your tax return and provides you with a | | | | your tax situation and aggressively look for every |
| copy for your records. Also, consider whether the | | | | deduction that can be applied. |
| individual or firm will be around to answer | | | | One of the best ways, however, to ensure that |
| questions about the preparation of your tax | | | | your tax preparer is doing the best possible job |
| return, months, even years, after the return has | | | | for you, is to get a qualified second opinion from |
| been filed. | | | | a 'tax expert" who specializes in reviewing taxes |
| 2.TECHNICAL EXPERTISE AND EXPERIENCE | | | | and looking for areas where you may be |
| While most tax preparers know a little about tax | | | | overpaying. |
| laws, many know almost nothing about technical | | | | "The March of Tax Changes in Recent Years Has |
| issues. They need to have the technical | | | | Made It Easier to Err, and the New Tax Law Will |
| knowledge to even know where to look, and the | | | | Only Aggravate the Problem."(US News and World |
| experience to know what to look for. | | | | Report) |
| CPAs, accountants, and bookkeepers, without a | | | | Taxes may be one of the things you can be sure |
| tax specialty, may not have the time, experience, | | | | of in life, but the same can't be said of tax laws. |
| education, insight or technical skill to deal with the | | | | They change constantly. The recent tax law |
| technical analysis and identification of issues | | | | changes include the most sweeping changes in 15 |
| necessary to effectively prevent avoidable tax | | | | years. The new legislation makes 441 tax law |
| overpayments. | | | | changes spread through 189 sections of the |
| It is important that the tax expert you choose | | | | Internal Revenue Code. |
| not only has a number of years of experience | | | | "In June 2001, for instance, President Bush signed |
| tackling technical issues, but also a good technical | | | | into law the Economic Growth and Tax Relief |
| knowledge base to draw from. | | | | Reconciliation Act of 2001. The Act significantly |
| 3.THOROUGH KNOWLEDGE OF THE LAW | | | | alters the tax treatment of several major financial |
| In this industry, it is what you don't know that | | | | issues, including income, retirement savings, |
| costs you money! There are literally volumes and | | | | educational savings and estate planning. It's a |
| volumes of laws that can potentially affect the | | | | complex law that amounts to over $1 trillion in tax |
| amount of taxes you end up paying - and those | | | | cuts, but most of those cuts are being phased in |
| laws change constantly. What most taxpayers | | | | (and in some cases phased out) over a 10 year |
| don't realize is that even small changes can affect | | | | period, and the entire act itself will end in 2010. |
| your taxes in a big way. Money Magazine's tax | | | | Between now and then, however, Congress may |
| test has shown that unfortunately, very few tax | | | | pass other measures that either extend |
| preparers actually take the time to learn the | | | | provisions in the Act or eradicate them once the |
| hundreds of new tax laws released every year. | | | | law sunsets." (money.cnn.com/Personal Finance, |
| This is a total disservice to the taxpayer because | | | | Oct. 2002) |
| the result is a representative who is unable to | | | | Now, It's More Important Than Ever To Get A |
| identify a tax issue, tax law, or fact that could | | | | Second Opinion On Your Taxes to Ensure You |
| support and justify a reduced tax liability. For this | | | | Are Not Cheating Yourself and Giving Uncle Sam |
| reason, the tax expert you choose should have | | | | a Windfall. |
| thorough knowledge of current laws and stay | | | | A second opinion will not only give you the peace |
| continually educated on all new and updated tax | | | | of mind that your tax preparer is doing the best |
| laws and guidelines. | | | | possible job they can for you, but more |
| 4.ATTENTION TO DETAILS | | | | importantly will ensure that you are not paying |
| Most CPAs prepare tax returns for approximately | | | | one penny more than your fair share. |