How to Get the Most from Your Tax Pro

I've noted several times that I use a CPA to do my taxes, so when I ran into this piece on Yahoo, I thought I'd share some of its thoughts and comment on them. The article is on getting the most out of your tax pro and includes these key thoughts:

• By doing some advance work on your own, you'll make life easier for your tax pro. And you'll increase the chance that you'll legitimately lower your tax bill. You might wind up paying a lower fee too.

• Don't wait too long. As the April 17 filing deadline approaches, it can get harder to set up quality time with your tax adviser. One tactic is to schedule a meeting for late this month or early February. You likely will have most if not all of your 2006 paperwork by then.

• You may use the time to ask questions too. You can get a consultation along with a start on your 2006 tax return.

• You can use last year's tax return as a guide so you won't make vital omissions.

• If you track your finances on a computer software program, that will help you pull your records together.

• When you meet with your tax pro, bring in a disk from your program in case data are needed. Call first to make sure the preparer's office supports your file format.

I don't meet with my CPA any longer since I've used her for several years now and there's no need to get acquainted. But here's how we do things:

1. The firm sends me a copy of last year's tax return as well as a questionnaire regarding 2006 (Did I do this? Did I do that? And so on.)

2. I summarize my 2006 results into an Excel spreadsheet using Quicken to dig up all the data.

3. I write a cover letter that explains the data I'm sending and also highlights specific facts/questions that I think can influence my 2006 return.

4. I take a copy of the Excel spreadsheet data, the completed questionnaire, back-up data and forms, and put them into an envelope. I put the cover letter on top. I try to have this all done by mid-February in order to beat the March/April rush that I know is coming.

5. My CPA begins work on my return and we go back and forth via email to work out any details.

6. The return is usually done and filed by mid-March. And I'm thankful that I don't have to do it again for another year. ;-)

Comments

[Chris]

I haven't looked into a lot on your site at this point, but I'm curious if your return is simple enough to handle via Turbotax or TaxAct?
The only reason I'd use an accountant is if I had a business on the side, or (*possibly*) if I had capital gains.

[FMF]

Chris -- No, it's not. That's one reason I use a CPA (click the link above for details).