Consumer Reports has some good thoughts on making sure your tax preparer is really qualified before you hire him/her. In particular, they share four things you should do before hiring a tax preparer as follows:
- Ask about your preparer's qualifications
- Get an estimate of costs up front
- Find out how your preparer keeps up with changing tax laws
- Ask whether the preparer can represent you in an audit
As many of you know, I use a CPA to do my taxes. Based on my experiences with her, here are my thoughts on Consumer Reports' tips above:
1. Certainly ask about qualifications. In particular, look for advanced certifications like having a CPA. I also asked for references and then called the people to see how they liked her.
2. Yes, yes, yes! Get costs up front! If you don't, you may get a bill much larger than you expect. This happened to me early on in my relationship with my CPA, and I've asked for an estimate in advance every year since.
3. Hard to find this out other than simply asking.
4. Mine does -- and says so up front. Of course them doing so would probably cost me an arm and a leg. Anyone had experience with a tax preparer representing you in an audit? Did it cost a fortune?
FMF and other readers --
At what point in your life did you go from doing your own taxes to having someone do them for you?
Just wondering at what point its worth it to pay for the service! :)
Posted by: MyLifeROI | February 19, 2009 at 10:38 AM
My --
I made the change once I started earning a high salary, had a side business, and my taxes got very, very complicated.
Posted by: FMF | February 19, 2009 at 10:51 AM
is 70K salary high enough
Posted by: | February 19, 2009 at 01:54 PM
Maybe. Depends what tax issues impact you, how much time you have, how much you know about taxes, etc.
Posted by: FMF | February 19, 2009 at 01:56 PM