Find the Right Tax-Preparer

I've said many times that I use a CPA to do my taxes, but I haven't said how I found her. The short story is that I asked someone I trusted, who was successful, and who managed his money well who he used. Then I interviewed the accountant, liked him, and used him a couple years. When he moved up in the company, I started working with his assistant, someone who I actually like even better (she's faster at getting back to me when I have a question).

Here's a piece from USA Today that gives their guidelines for finding the right tax-preparer. Before they get to this, however, they start with a dose of realism:

Tax preparers don't need a license to practice in most states. Anyone can print out business cards and call himself a tax preparer. Sometimes, the shady operators are easy to spot: A used car dealership that also offers tax preparation is probably not a good place to drop off your W-2s. But in other cases, the warning signs aren't so obvious.

In other words, be very, very, very careful before you trust someone to prepare your taxes. (Just like when you hire a financial planner, you don't want to hire someone who's a loser.) To help you out, USA Today lists the possible types of preparers you have to choose from when hiring one.

USA Today also gives a piece of advice that I've found helpful throughout the years:

Get organized. When tax preparers unwind at the local tavern, they like to swap stories about customers who bring their documents in shoe boxes, shopping carts and occasionally, U-Hauls. But sloppy record keeping is no joke, especially if your preparer charges by the hour.

I view the tax filing process as a partnership with my accountant. I complete the basic information (in detail -- which is pretty easy since I use Quicken) then send it and the supporting documents to my accountant. She reviews them, asks questions, and then completes the return. We talk or email several times during this process to make sure everything is done correctly. It's this collective partnership that makes the process go smoothly and ensures that the final return is the best we can make it.

Another way to look at it: if my CPA charges $75 per hour, any organization effort on my part that saves her time saves me money. It's worth the effort.

For more tax-related post from Free Money Finance, see these links:

• Six Don't-Miss Tax Breaks
• Need Help this Tax Season?
• Eight Ways to Avoid an Audit
• Tax Law Changes You'll Need to Consider for 2005 Income Tax Returns
• Top 10 New Year Tax Resolutions
• The Fastest Tax Refund Possible
• 3 Keys to Choosing the Best Tax Pro
• Five Common Tax Filing Mistakes
• Tax Savvy Ways to Save for an Education
• The Basics of Tax Record Keeping: What Should You Keep?
• As Audits Increase, Taxpayers Should Seek Professional Assistance to Avoid Trouble with the IRS

FMF recommends Emigrant Direct.

Comments

[Beatrice DiGirolamo]

CAn I do my taxes on line and then have it sent for Ez payment?

[Dan]

To find a trusted tax preparer, sometimes the best place to start is referrals from friends and family. To quickly vet prospective professionals, a great place to start is simply typing their name in Google, you might be suprised by the results you see! You can also increasingly find local tax preparers in various local directories, such as those from the state CPA society, NAEA (National Association of Enrolled Agents), or online directories such as WealthVisor. Picking the right tax preparer is an important decision, so it is worth a bit of time researching and interviewing various professionals. Don't hesistate to ask a lot of questions to find out how they charge, how they deliver their services, and references from other clients!