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Author Topic: Picking a tax professional  (Read 1103 times)

K Frame

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Picking a tax professional
« on: October 24, 2006, 04:57:16 AM »
I'm hoping someone here will have some sage advice.

For a variety of reasons, I'm in need of a tax professional in a very bad sort of way.

I've prepared my taxes myself for many years, but this year, and next year, are going to be monumentally complex and I no longer feel comfortable doing it.

The only problem is, I have no clue:

1. What kind of advisor I need, or in fact what kind there are.

2. How to pick one that won't kill me with fees but who will do a quality job of helping me keep as much of my money as I can.


Thanks in advance.
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The Rabbi

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Re: Picking a tax professional
« Reply #1 on: October 24, 2006, 05:00:31 AM »
If you have a good attorney, ask him.

You probably need a CPA.  You could start by surveying friends who are small business owners.  Many of them need CPAs regularly and so you can get feedback on how good they are.
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HankB

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Re: Picking a tax professional
« Reply #2 on: October 24, 2006, 05:13:35 AM »
I assume you've determined the popular tax-prep software packages like TurboTax and TaxCut don't meet your needs . . .

If you go to a large "chain" like H&R Block, be aware that besides being very expensive, a LOT of their employees are seasonal . . . and they do NOT repeat NOT necessarily understand tax law, especially if you live in a state with it's own income tax. (Some years back, I got in an argument with one of these part-timers over my mother's taxes - the guy didn't even know that T-bill interest was exempt from STATE income tax . . . and he taught math at the local high school!)

Rabbi's suggestions are good ones - you need a real CPA. But be aware, studies have shown that complex tax calculations done by CPAs often differ. (They shouldn't, but they do.)

Even after you get your taxes done professionally, I still suggest you work them out yourself with tax-prep software and make sure you get results in line with the CPA's . . . and if there's something wildly different in the numbers, find out WHY.
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Headless Thompson Gunner

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Re: Picking a tax professional
« Reply #3 on: October 24, 2006, 07:09:14 AM »
Ask your small business owning friends.  They'll point you in the right direction.
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280plus

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Re: Picking a tax professional
« Reply #4 on: October 24, 2006, 09:21:23 AM »
Yea, steer away from H&R...
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TaxPhd

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Re: Picking a tax professional
« Reply #5 on: October 25, 2006, 03:31:21 AM »
Do not, under any circumstances, go to Block, Jackson Hewitt, etc.

The advice for a CPA or attorney is pretty good, but be careful.  There are plenty of CPA's and attorney's out there who know almost nothing about taxes.  Make sure that is a specialty practice area for them.  A CPA with a Master's in tax, or an attorney with an LLM in tax could be a good way to go.

Also look for an Enrolled Agent.  Very rigorous testing, and tax specific.

Good luck!




Scott
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Barrel First

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Re: Picking a tax professional
« Reply #6 on: October 25, 2006, 06:19:19 AM »
Mike...

Find a CFP who has been in practice in your area for awhile and ask for his recommendation. CFPs are the quarterbacks of financial planning teams [CPAs, estate planning attorneys, insurance agents, etc.] for their clients and usually have in-depth experience with the type of specialists that are the rule of thumb these days.

...Alex
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BozemanMT

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Re: Picking a tax professional
« Reply #7 on: October 25, 2006, 07:48:54 AM »
Quote from: Headless Thompson Gunner on October 24, 2006, 06:09:14 AM
Ask your small business owning friends.  They'll point you in the right direction.

exactly
Find out who other's use and you'll get what you need.
one point that almost nobody knows
A Tax Attorney is more expensive but is covered by attorney-client priveedge.
A CPA will help you, but is NOT covered by attorney-client privledge and thus must reveal all to IRS
you know, just in case you have ummm, issues.  Not that you do, but just in case.

Find a Tax/small business oriented CPA that's close to you and use them on a regular basis.
Accountant's fees are not an expense, they are an investment.
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Re: Picking a tax professional
« Reply #8 on: October 25, 2006, 08:44:42 AM »
Whatever you tax concern is, talk to an attorney in that area and they should offer you advice and point you to a CPA that can handle your tax issues. Sounds like your tax issue could be costly so consider the attorney and CPA an investment as mentioned above.

I know it sounds ambigious what I wrote but I don't know your specific problem.

Oh yeah.. welcome back Mike!

-C
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K Frame

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Re: Picking a tax professional
« Reply #9 on: October 27, 2006, 02:13:51 AM »
Thanks for the advice.

I'll look for a CPA. I don't need an attorney, I just need someone who understands laws regarding special dividend allocations on stock assets and AMT.
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TaxPhd

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Re: Picking a tax professional
« Reply #10 on: October 27, 2006, 05:11:23 AM »
Mike,

If you have stock options, talk to a CPA before exercising them.  Potentailly BIG AMT issue.




Scott
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Monkeyleg

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Re: Picking a tax professional
« Reply #11 on: October 27, 2006, 01:41:30 PM »
Mike, here's another vote for getting referrals from people you know.

My first accountant set up my business as a C corp in 1990. He told me it didn't matter what month I started the corporation.

Well, it did. And I wound up owing $30,000 more in personal taxes than I was expecting.
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