Getting the Most out of your Tax Preparer
Often when people think it is time to have someone prepare their tax returns, they have no idea what the process of finding and keeping a tax preparer is. Here are a few tips for getting off to the right start with a preparer.
1) Ask friends or colleagues for a referral for a tax preparer. Try to get more than one so that you can interview the preparers and make your own decision.
2) Contact the tax preparer between May and November. Typically this is a slower time for tax preparers and you will have their full attention. Conduct a phone interview to determine 1) Are they responsive? 2) Do they have experience in your area?
3) Meet the tax preparer face-to-face. While most issues related to having your tax return prepared can be handled via mail, e-mail, and phone conversations, it is important to develop a relationship with your preparer by meeting with them. Again, it is ideal for the initial meeting to take place prior to tax season.
4) Discuss fees up front. Most preparers charge an hourly fee and have a minimum for preparing returns. To avoid awkward conversations `regarding payment and fees after the work has been completed, the fees should be discussed during the initial interview. Be sure to discuss all returns you may need to have prepared, including children, parents, trusts, or businesses.
5) Organize your information before turning it in to your preparer. The more time the accountant has to spend opening and/or separating your mail, the more the charge for the return will be.
6) Be responsive to the requests of your tax preparer. Every time a preparer has to request additional information again and again, it is costing you money. Also, the longer you delay in getting back to your preparer, the more work from other clients can pile up in front of yours, causing your return to be pushed further down the priority list.
7) Use your tax preparer as a resource, but don’t be unrealistic. Ask your preparer BEFORE completing transactions that may have tax consequences. Many times people don’t tell their preparer about a significant transaction until after it already happened. Expecting your tax preparer to minimize your taxes is realistic, but expecting them to minimize your taxes without having them be involved in major transactions or planning, is unrealistic.