Four Questions to Ask When Hiring a Tax Preparer
Many people contact CPA firms with the hope that the CPA firm can automatically know exactly how to help them. While most CPAs are well equipped to handle tax preparation, it should not be assumed that all CPAs will know exactly how to service your specific needs right away. In fact, the more questions you ask, the more you can learn about how a prospective CPA will be able to handle your particular situation.
Here are just a few questions you should ask before hiring a tax preparer.
Do you have preparer tax ID number?
This should literally be the first question you ask. Anyone who prepares tax returns for money must have a valid PTIN. If they don’t have their PTIN, run away as fast as you can, because you may be dealing with a fraud.
What is your tax background?
For some people, this question would appear to be a tad intrusive, but asking for a company’s tax background is important. Just because one is a CPA doesn’t always mean they are qualified to handle you and your business needs.
Have you ever prepared a tax return for another business?
Just because a CPA has prepared a tax return before doesn’t mean they’ve prepared one for a business. Make sure you ask, and if possible ask for information so you can substantiate whatever response they give. You should also try to obtain references for whichever CPA you’d like to work with.
Do you know the state requirements which pertain to me?
This is another important question to ask because you want to make sure that the CPA knows the tax laws in your city/state. Not knowing your state laws could be a costly mistake that you never knew you signed up for.
Image credit: TaxRebate.org.uk