Investments & Loans

Get a referral

Ask friends, family, work colleagues. If you are new to an area, to check the states CPA society or Accreditation Council or National Association of enrolled Agents.

Interview Candidates

Although you will be hard pressed to find an agent with time to sit down with you during tax season, you should be able to at least get someone to give you 20 minutes on the phone.

You want to find someone that can explain their services and you requirements in plain english.

Also, check here for a list of questions to ask a prospective tax pro before hiring them.

Watch for Red Flags

Potential red flags include:

(a) talk of cheating the IRS
(b) pushing you to take certain deductions
(c) promising a return that is a defined percentage of your income
(d) encouraging you not to declare certain income
(e) agent fees being a percentage of what you get back (they may be more inclined to bend the rules)

Mention any special circumstances

Let the person know about anything that may have an effect of you return. Examples include recent divorce, lump sum payments and changes in your work situation (starting your own business or returning to salary work)

Pick your preparer

At some point you have to “bite the bullet” and just hire one of the professionals you have interviewed. You want to make sure the person you are hiring is going to be around in months, years even, after your return has been lodged.

Other tips

1. Do not sign a blank return
2. Try to bring your papers in to the agent in a reasonable state.
3. Compile summaries of your income, expenses, cost of investments sold
4. If you cannot afford a tax pro, try getting free tax info here and here

Reference: Kiplinger

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