Ten Questions To Ask A Tax Preparer

Despite the fact that it is an annual occurrence, filing taxes is far from simple. However, if you tackle it alone, it’s easy to make a mistake because there are various regulations and formulas to remember, as well as so much paperwork to fill out. It’s no surprise, then, that the IRS estimates that more than half of all tax returns are completed by professionals.

If you’re looking to find a tax preparer, and a good one at that, how can you be sure you’re making the right choice? In that case, it’s essential to pick a dedicated professional with high standards. After all, you need to ensure you get all the deductions and credits filled correctly!

However, if you’ve never worked with a tax preparer before, you may not know where to start when it comes to choosing the right one for your business. To make the whole process easier for you, we’ve outlined ten valuable questions to ask a potential tax preparer.

During your initial consultation, ask these questions to help you understand if this professional is the right fit for your business and capable of handling your tax situation.

1. What is your process for tax preparation?
To make tax season a breeze for both you and your accountant, ask your accountant what information you need to gather for them ahead of time. And ask them how you can better organize your records to make tax filing easier (e.g., using accounting software). The more organized your records are, the less time it will take your accountant to prepare the tax forms.

2. What tax goals should I have? Can you help me with them?
If you want to make sure your taxes are done right, so the IRS doesn’t come knocking on your door, or if you want to figure out whether or not to take the standard deduction or itemize your deductions. Then share your goals and tax worries with your tax pro and ask how they plan to walk you through the tax-filing process. Knowing how your tax pro works and having them share their process with you can help get rid of some of your deepest, darkest fears when it comes to tax season!

3. What information will I need to provide to you for my tax filing?
Giving your tax advisor a clear picture of your finances will help them file your tax return accurately and help them quickly identify ways to save you money.

4. How can I improve my tax situation?
Great tax professionals won’t just help you file your taxes, collect their fees, and then disappear. They’ll be there after you file to answer your questions about your tax situation. Not only that, they can show you how to adjust your tax withholdings and get closer to that sweet spot where you’re paying almost exactly what you owe to the government, no more and no less.

5. Do you have any recommendations of things I should try this year?
Beyond taxes, your tax pro could also suggest taking steps to help protect your assets or help you make more progress on your financial goals for the rest of the year. Maybe you need to get term life insurance once you get hitched or set up a trust to protect your estate. Your tax pro can provide some really valuable insight into those areas!

6. Are you available for consultations throughout the year?
A good accountant’s goal is to help you maintain and grow your business. To do that, they need accurate and timely financial statements and a client who’s interested in taking their advice, not just during tax season but throughout the year.

7. How do you stay up-to-date on tax changes?
IRS rules and business accounting standards change from time to time. While you might not be aware of upcoming changes or understand how they might impact your business, it’s your accountant’s job to stay on top of what’s happening in the industry.

8. What is your process if a mistake is made on my return?
When the mistake results in fees or penalties, the service provider will often compensate the customer directly in order to smooth things over. Others may offer to contact the IRS on your behalf to negotiate forgiveness of the error or a reduction in the penalties.

9. Do you have a PTIN? (Preparer Tax Identification Number)
This should be your first question. Anyone who prepares federal tax returns for compensation must have a valid 2014 PTIN before preparing returns. Without a PTIN, the preparer is not allowed to prepare your return. This isn’t something you want to find out at the end.

10. Do you provide audit help?
Nobody wants to think about an audit when filing a return. But you need to ask about it now so that you don’t end up in a pickle later. Find out how the tax preparer handles audits or examinations from the IRS.

If you’re looking for reliable virtual bookkeeping services for small to medium businesses across the USA, connect with Spickerman Bookkeeping. During the pandemic, meeting people was quite challenging, so we worked on getting through the process remotely. We had meetings with our clients virtually to get through the process without leaving the comfort of their homes. There are other changes they would have to get through, and we are always a virtual meeting away.

Reach out to us at Spickerman Bookkeeping to get started on your tax return, or you can even contact us by clicking here.