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