Around one-third of people look for a tax preparer, an accountant or a tax advisor to file their tax returns, but with little or no information, it is difficult to find the best one.
While looking for the best accountant near you in California, consider this checklist to help you find the right person.
Ask for a preparer tax Identification number:
The IRS requires anyone to have a PTIN whoever prepares and assist in preparing federal tax returns for compensation. However, volunteer preparations don’t require a PTIN. The IRS also requires your tax preparer to put his or her PTIN number on your return.
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Require a CPA, law license or enrolled agent designation:
A PTIN is easy to get, so look further for a credential preparer- someone who also is a certified public accountant, enrolled agent, licensed attorney or who has completed the IRS Annual filing season program. Accredited tax preparer or accredited business advisor/accountant is an example of IRS Annual filing season program requirement. These credentials require varying amounts of education, study and exams. The best way to find an accountant near you in California with credentials you want is to search the IRS directory. The IRS includes IRS-recognized professional credentials and preparers with PTINs. Volunteer preparers with just PTIN won’t be in the database.
Look for friends in high places:
Membership in a professional organization such as the National Association of Enrolled Agents, The National Association of Tax Professionals, The American Academy of Attorney CPAs or the American Institute of Certified Public Accountants is always a good thing to have, as most of them have professional conduct requirements, code of ethics and various certification programs.
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Compare Fees:
Legitimate tax preparers or accountants charge by hours, so if you come across one whose fees is based on the size of your refund who says he/she can get you a bigger refund than the next guy, beware of them!
According to the National Society of Accountants, if the IRS is auditing you in person, tax preparers would charge around $150 per hour to handle it. According to the National Society of Accountants, the average fees for preparing a tax return including an itemized Form 1040 with Schedule A and a state tax return would be $300. The average cost to prepare a form 1040 and state return without itemized deductions was $188.
Reconsider those who doesn’t e-file:
The IRS requires the tax preparer to e-file that is electronically filed via IRS e-file system, if he or she does more than 10 for clients. If the tax preparer doesn't do e-files, then they are not doing enough as per the IRS requirement.
Confirm they’ll sign on the dotted line:
The law requires tax preparers to sign their client’s returns and provide their PTIN. Never sign the blank tax return because your preparer may put anything on the return, including their own bank account number to maybe steal your refund.
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Check if they have your back:
CPAs, attorneys, enrolled agents with PTINs can represent you in front of the IRS on audit, collection issues, payments and appeals. Prepares who just have PTINs can’t represent you, even if they prepared your return. While prepared in the Annual filing season program can represent clients only in circumstances.
While looking for an accountant, availability of the CPA is also important. If you’re looking during the tax season, accountants are way too busy to handle their current clients but the best tax preparers will take your call, respond to email or invite you for a meeting.
