Things to Consider When Choosing Your Tax Preparer

Due to a complicated tax code and tedious forms, filing taxes is rather unappealing for most of us. That’s why many people are choosing to hire a professional to help them out during this year’s tax season. Everyone’s tax situation is different and who you choose to hire to prepare your taxes varies. However, there are several universal questions you should ask regardless of who’s preparing your taxes:

Ask about a tax preparer’s fees. National firms may charge less that sole practitioners, and sole practitioners generally have lower fees than accounting firms. According to the National Society of Accountants, fees can range anywhere from $230 to $695.

Ask whether a tax preparer charges by the hour. If the preparer is not up to speed with your tax situation, you don’t want to pay them to get them caught up.

Ask how long the tax preparer has been in business. Experience equals knowledge. You want a tax preparer that has been around for a while and is familiar with the changing laws.

Ask whether the preparer works year round. Since problems arise all the time that affect your return, easily being able to get a hold of your preparer is crucial. A tax preparer can help prevent unexpected tax liabilities if you seek their advice before making major financial decisions.

Ask whether a preparer has professional liability insurance. The taxpayer is responsible for any amounts due if there is a problem with the tax return. However, the preparer’s insurance policy may cover any penalties you owe so it’s very important to make sure they have insurance.

For more information on choosing the right tax preparer, visit Fox Business.

*To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or tax related matter.