Top 6 Factors That May Lead You To The Right Income Tax Consultants
A simple return may not require the services of an expensive CPA but if your return needs to be analyzed by an experienced specialist it is a good idea to hire a professional service. While there are also several online software programs available, it may not be a good idea to use them if yours is a complex return. Choosing the right tax specialist is essential if you are looking forward to saving some money and doing it the right way without getting into any trouble. So, if you are on the road to hire a professional, here are some of the things you may want to consider before making the final decision.
1. The client base : When you work with income tax consultants you must make sure that they comprehend your business and the rules that regulate it. A tax worker who has worked with similar businesses will definitely be beneficial for you when you file your returns.
2. Availability : A lot of tax firms work only during the tax season and close business after the 15 of April. However, if you are a small business owner, you may need tax related advice throughout the year so as to avoid unnecessary obstacles when it is the right time to file for returns.
3. Familiarity with IRS : Often times you will come across two types of tax professionals – CPAs or Certified Public Accountant as well as EAs or Enrolled Agents. CPAs are usually certified by the state while EAs get their certification from the federal government and are more often than not former agents from the IRS and have a good understanding of audits. You may find them having more knowledge of how the internal systems in the IRS work but if you are looking for broader financial planners, then CPAs are your people. So, instead of just checking out and depending on certification, it is advisable that you find how his experience can be beneficial to your business as well as tax filing.
4. Third party involvement : Often times accounting services like the CPAs may involve a third party to whom they outsource the work but that should not be a problem as long as they are honest about it with you. You have the right to know who will be doing the job for you on their behalf. However, you may not be able to communicate directly with the third party.
5. Billing : Income tax consultants use different methods of billing. Some may have an hourly rate while others may give you a flat rate. If, in your business, you do not have uninterrupted work then a tax specialist with an hourly rate should suffice. You may request for a quote to be able to make an informed decision. Simply provide a copy of your last tax return to help the tax firm generate a quote based on the kind of work they will be exposed to in your business.
6. Tax programs in use : While this may not be a very important factor to choose accounting services, you should definitely make yourself aware of the program they use to file taxes or just take care of them. This may help you in the future in case you want to move from your current filer to another one where you need to transfer the work.