Points to keep in mind while hiring a Tax Professional

Finding the best tax professional is important because even though the returned id prepared by someone else, you Re still financially and legally responsible for each and everything on it. Though one can easily find honest and talented professionals, there is no shortage of unscrupulous ones. Follow the below mentioned points to find the tax pro and avoid ending up with the frauds.

Do a background check

Before disclosing the financials to a stranger, do ensure that he or she is trustworthy. Perform a background check on the professional by understanding who he/she is, which company he/she works for, what are the reviews of the company. Do check with the state board of accountancy for any disciplinary actions or licensing issues against the professional.

Look out for credentials and Qualifications

You should ask the professional for his or her educational qualifications and how long he/she has been working and helping people with tax returns. You can even ask for references and call them up to know if the professional is reliable or not.

Check for compatibility

Besides a reliable and well qualified professional, one also needs a person whom one is comfortable with. While getting to know him, do understand his style and philosophy. You might not want to end up with a person who you are not comfortable with and is aggressive in suggesting deductions. Asking hypothetical questions about your tax situations can help in judging the professional.

Apart from all the above mentioned points, do know what the professional spends most of his or her time doing. A professional who specializes in taxes for large or medium size businesses may be knowledgeable but less fitting as compared to a professional who spends 60-70% time in doing taxes for home businesses and individuals. Thus, be careful while trusting a person for your tax returns.