10 Things to Know Before Choosing a Tax Practitioner

1. Know your rights as a taxpayer.
   
2. Be wary of firms that will quote a fee based on short conversations or general details. Your tax situation is complicated and unique, and therefore needs time and attention before a solution can be determined. A quick estimate is usually an unrealistic estimate.
   
3. Look to hire firms with credentials, including Attorneys, CPAs, CTPs, and Enrolled Agents, and tailor your search to the type of representation you need. Audits may be better handled by accountants and tax prepares who are accustomed to the return analysis and examination. On the other hand, Attorneys may be better suited for collection cases involving active negotiations for settlements, payment plans, and penalty abatements. Additionally, an attorney possesses the necessary skills and training to provide you with more options in resolving your tax matter and can take your case to Tax Court, District Court or Claims Court if necessary.
   
4. Learn who you are speaking to, and insist that they be involved in your case resolution. Many firms employ telemarketers who are paid commissions to bring your case in, and will promptly transfer the case to another individual. Because these salespeople have little or no tax consulting experience, they may not understand what can and cannot be done to resolve your case.
   
5. Many tax practitioners know that the general public is afraid of the Internal Revenue Service, and will prey on taxpayers with this in mind. Most IRS notices, although important, are not harmful. Some letters will simply request information or payments, but are not enforceable. Read your notices carefully, and do not be pressured into paying a firm for fear that the IRS will take immediate action.
   
6. Make sure the practitioner understands the entirety of your situation. Even if you only want them to manage a particular part of your tax case, it will be to everyones benefit to explain each aspect of your financial condition to ensure that your needs are met. Also, make sure your representative has contingency plans to address any additional problems that may arise in the future.
   
7. Ask the practitioner detailed questions, and be certain that they understand each aspect of what you need accomplished. Many attorneys are not familiar with the accounting and bookkeeping aspects of taxation, and conversely, prepareres may not be fully versed in the legal. Sometimes, the phrase "I don't know" is an acceptable answer, as long as they are able to research the problem and eventually provide you with an answer. If the practitioner is evasive in their responses, or they seem to "know it all", it is possible that he/she is trying to circumvent the questions and avoid any type of commitment.
   
8. Seek the assistance of representatives who specialize in, and exclusively work with taxation matters. Although nearly any attorney can represent a taxpayer before the IRS, if they specialize in another branch of law, they may not be familiar with all of the intracacies of working with the taxing authorities, and may miss out on opportunities for you.
   
9. If it sounds too good to be true, it probably is. If you've been prequalified for an Offer in Compromise, or guaranteed that your penalties will be abated, you are probably talking to a telemarketer or hearing a sales-pitch.
   
10. Do not make emotional decisions. Hiring a tax professional can be a personal experience, and without a doubt, you are seeking their guidance to bring about peace of mind. Regardless of who you hire, you should feel comfortable with them, and feel that you are properly being taken care of. Ask for references, and check with the Better Business Bureau to verify that their existing clients have been well cared for.

Aspen Accounting & Financial Services employs accountants, bookkeepers, attorneys, certified tax preparers, and tax researchers and consultants. All of our representatives are members of various professional organizations, including the National Association of Tax Professionals, National Society of Accountants, State Bar Associations, and others.