If your income is high enough and your tax needs complex, you may want to hire an accountant to help you with your tax preparation, as well as tax planning, budgeting, and advice on major decisions that could affect your tax standing. To find the person who best fits your needs, ask the questions on this checklist before you make your final choice.
How much do you push the envelope? Question candidates about their philosophy regarding deductions. Ask if they're likely to be proactive on your behalf, or whether they tend to be conservative. (At the same time, ask yourself which style makes you most comfortable.).
What's your fee structure? When you take your taxes to a CPA firm, your work may be handled by a variety of people and charged at different levels. Simple portions of your return may be given to staff members whose work is billed at a much lower rate. Expect to pay the CPA from $150 to $250 an hour, depending on where you live and how big a firm you're dealing with. Ask how much preparation of your return will cost and find out how each level of service will be charged.
Can we talk? Will your accountant answer questions over the telephone during the year? Some professionals will hit you with a per-hour charge for these calls; some consider the occasional call to be part of the ongoing relationship
What's your background? As with any professional you hire, you'll want to find out how long this person has practiced, where she's worked, and what kind of training she's had. Ask about her special areas of expertise to find out whether they match your needs.
Are you selling anything? The only thing you want your accountant to sell you is expert tax preparation and advice. Walk away from accountants who also sell investments for which they earn commissions.
Will you be there if I'm audited? Don't assume that your accountant will stay by your side if the IRS decides to audit your tax return. Ask your candidates directly whether they can and will represent you. Expect to pay extra for their time if they do.
If your tax return is a bit complex, but you don't want to hire an accountant, consider hiring an “enrolled agent.” These highly trained individuals will cost less than a CPA, but can give you tax advice and are licensed to represent you with the IRS in case of an audit. Many are former IRS agents.
