|
Advice when hiring a tax professional.
Ask the tax professional about their credentials, and verify the credentials before enlisting them for help. A tax professional needs to be an Enrolled Agent, meaning they have had an IRS background check done on them and that they have also passed a test covering all aspects of taxation. A tax professional can also be a CPA (Certified Public Accountant) or a tax attorney. Those are the only types of professionals that are allowed to provide you help with paying taxes and that are allowed to state their case and practice before the Internal Revenue Service. Also, note that attorneys and CPAs are limited to practicing in those states where they are licensed, so be sure you check this as well. On the other hand, Enrolled Agents can provide help with taxes and practice in any state.
Keep your costs under control. Tax professionals will charge you either a flat fee for providing help on your taxes, or they will change you an hourly rate for services rendered. You want your tax pro to focus on providing plans and strategies, as well as negotiating with the IRS. You do not want them spending time on routine data entry work or other paperwork. A good tip is to ask your tax professional what IRS forms and paperwork you can complete yourself to minimize the your overall fee that you will need to pay.
|