Top 3 Questions Tax Professional should answer before hiring them

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Hiring a Tax Professional? Here are Top Three Questions to Ask.

It was Benjamin Franklin who said nothing is certain “except death and taxes.” And if you’re like most people, you probably aren’t too excited about the upcoming tax season. In fact, only 45% of the American public has a favorable view of the IRS, compared with 48% who rate it unfavorably.1

One way to avoid the inevitable is to get somebody else to do it—preferably a tax professional. If you’re considering this, you’re in good company. A 2016 GoBankingRates study discovered that about 37% of Americans pay a professional for their tax filing.2 But before you pick up your phone and hire one. Here are three questions you should ask your tax professional before you hire them:

Question One: What are your fees?

This important question may not get a straight answer from your tax professional because it all depends on your return. Are you filing a return in multiple states? Did you work different types of jobs that may require additional forms or schedules? Some tax preparers charge additional fees for these type of complex tax returns. Still, others may charge only a flat fee for their services.

Also be especially wary of professionals who calculate their fees as a percentage of your refund. These types of individuals may be too aggressive in obtaining deductions which may get you on the IRS’ audit list.

Average fees of most tax accountants are…

Here’s what The National Society of Accountant had reported from their members: The average fee charged to prepare an itemized Form 1040 with Schedule A and a state tax return is $273, and the cost for a Form 1040 without itemized deductions and a state return is $176. If you own a business, it’s $457 for an itemized 1040 with schedule C business income 7 State & State Return.3

Question Two: What documentation do I need for my filing?

Knowing the answer to this question will save you time and money. Also remember that regardless of who you hire to prepare your taxes, you are the one ultimately responsible for ensuring all the right paperwork (bank statements, paystubs, 1099 forms, etc.) is there once you begin your tax filing. Remember, regardless of whether your filing is simple or complex, it’s smart to bring all relevant paperwork to ensure you get the maximum return.

Question Three: Do you have Audit Support in the event of a tax audit?  

No one likes to ask this question, because no one wants to go through a tax audit. With that said, there is some measure of comfort and reassurance knowing you have a professional on your side if your return is flagged by the IRS. If they do offer this service, find out what it will cost you.

What other questions do you have?

At Integrity Accounting, get your questions answered about your tax preparation and get the guidance you need to ensure a successful tax filing. For more information, visit www.accountingnewmexico.com or call 505-205-1900.


1 – http://www.pewresearch.org/fact-tank/2015/04/10/5-facts-on-how-americans-view-taxes/
2 – https://www.gobankingrates.com/taxes/43-percent-americans-file-taxes-comfort-home-survey-finds/
3 – http://connect.nsacct.org/blogs/nsa-blogger/2017/01/27/nsa-survey-reveals-fee-and-expense-data-for-tax-accounting-firms-in-2016-and-2017-projections