Finding the Right CPA for Tax Help

A CPA is a unique breed of financial professional. In addition to passing the CPA Exam, they are licensed in their home state by the state authority. While CPAs are known for their ability to handle complicated accounting matters and preparing tax returns, not every CPA handles tax issues.

Armed with knowledge of balance sheets, profit and loss statements and various other accounting elements, CPAs that specialize in tax issues possess a specialized understanding of the application of tax code to specific situations. In addition, they know how to work with IRS and other tax agents in order to help taxpayers through difficult situations.

Want to find the right CPA to handle tax matters? These simple tips can ensure that.

Define the Reason for Hiring the CPA

Being able to define specifically what is needed from the CPA is essential to finding the right person. Some reasons may include:

• Needing help navigating changing tax laws
• Increasingly complex tax situations
• A need for planning to minimize the tax burden
• An IRS audit pending
• Other tax issues

There is a difference between hiring a CPA to prepare tax returns and financial statements and hiring a CPA who specializes in tax issues. Of course, the benefit of selecting a CPA that specializes in tax issues is that they can manage the situation properly to can prevent problems later; and if unforeseen issues arise, they have the experience to be part of the solution.

Questions to Ask a CPA About Tax Matters

It’s been said that the only constants in life are death and taxes. While some may argue the veracity of that statement, the reality is that changes to tax laws are also a given. Add to that the fact that there are different regulations at the federal and state levels, and it becomes obvious that choosing an experienced, knowledgeable tax CPA isn’t a luxury, - it’s a necessity.

When interviewing candidates, consider the following questions:

• When did you get your start in taxes?
• Why did you choose this profession?
• In what type of tax matters do you specialize?
• Do you hold any special credentials, licenses or designations?
• What makes you capable of handling IRS, state, payroll or sales tax issues?
• What do you charge?
• Do you do the work yourself or outsource it to others? If so, do you review all documents personally? Who signs the return?
• Can you represent me in the event of a tax issue?
• With whom will you share my tax information?
• How aggressive are you on pursuing deductions?
• How aggressive are you when addressing tax issues?

CPAs that handle tax matters should have specialized knowledge in this complex are and sufficient competency to address IRS and state agents with regard to any issues that may arise.