A third of us tend to hire the best tax advisors and tax preparers to file their tax returns as per the NerdWallet survey but rarely there are very few who know about them. Majority of the people who hire tax preparers or CPAs never ask them about their credentials and as per the survey, 75% of those who hire a CPA never question them about whether or not they can represent them in a tax audit. Keeping in mind the fact that hiring a tax preparer will mean sharing financial details, hence if you’re searching for one, you have to ensure finding the best one around you.
If you’re looking for a CPA in Israel, you may opt for Philip Stein CPA & Associates as they have the best tax preparers who can help you with your business finances. Let’s take a look at what you should ask before hiring tax preparers.
#1: Ask them about tax identification number
Anyone who is involved in preparing federal tax returns in lieu of compensation should have a PTIN or that is what the IRS demands. As we say ‘in lieu of compensation’, we mean that volunteers don’t require having a PTIN. You have to ensure that your income tax preparer puts his PTIN number on your tax return. The IRS will need that too.
#2: Ask about their law license, CPA and designation of enrolled agent
A PTIN is rather easy to achieve and hence you have to take a step further in order to get a preparer who has got credentials. He should also be a licensed attorney, a public accountant and enrolled agent. The Accredited Business Accountant is a program which assists the preparers in fulfilling the requirements of filing tax returns. These credentials tend to vary.
#3: Compare and contrast the fees and charges
What is the amount that might be charged by the tax preparers? The average fee that you have to pay for preparing a tax return was $274 in 2016 as per the National Society of Accountants. The average cost to prepare a Form 1040 and state return sans itemized deductions was $176. In case IRS audits you in person, the tax preparers will ask you to pay $150 in an hour and hence all these charges should be compared and contrasted.
Therefore, whenever you’re trying your best to hire a tax preparer or a CPA for your business tax needs, make sure you ask them the above listed questions so that you can easily be able to choose the best one among them.