When it comes to doing your taxes, it’s best to be clear about what you need help with. If your taxes are straightforward, using tax software might do the trick. But if your situation is more complicated, you’re a business owner wanting to ensure everything is done right, or you just find taxes challenging, it’s a good idea to get the professional tax services in Houston Texas.
Understand Your Tax Prep Needs
Before you start searching for a tax preparer, it’s important to understand what you specifically need. Tax preparation varies from person to person, and the kind of help you need will depend on your unique situation.
Different Types of Tax Preparers
There are several kinds of tax preparers, each with their own skills and expertise. Here’s a quick rundown of the most common ones:
Certified Public Accountants (CPAs)
CPAs are highly trained professionals who have passed tough exams and continue learning to stay updated. They understand tax laws well and can help with more than just taxes, offering services like financial planning and auditing.
Enrolled Agents (EAs)
EAs are licensed by the IRS and focus mainly on tax-related issues. They either pass a comprehensive exam covering tax laws or have worked with the IRS for several years. They can represent you in front of the IRS, making them a good choice if you expect any complications with your taxes.
Tax Attorneys
These are lawyers who specialize in tax law. They’re your best bet if you need legal advice about taxes, especially during audits or when dealing with complex tax issues.
Retail Tax Preparation Chains
Companies like H&R Block and Jackson Hewitt have networks of tax preparers. They often provide more affordable services, but the quality depends on the preparer’s experience and qualifications.
Unlicensed Tax Preparers
These preparers don’t have official licenses but still offer tax services. While they usually charge less, the lack of regulation can lead to a higher risk of mistakes or fraud.
Individual vs. Business Tax Prep
It’s important to know whether you need help with individual or business tax preparation since each one is different:
Individual Tax Preparation
This focuses on preparing tax returns for individuals or families. It’s usually straightforward, but it can get more complicated if you have multiple income sources, investments, or deductions. A tax preparer who knows individual taxes well can help you get the most out of your refund or reduce your tax bill
Business Tax Preparation
Business taxes are a lot more complex. Depending on whether you’re a sole proprietor, partnership, S-corporation, or C-corporation, each structure has its own rules and requirements. A tax preparer experienced in business taxes can guide you through deductions, credits, payroll taxes, and other business-related tax matters.
Tips For Hiring a Right Tax Professional
Check for Qualification
Make sure your tax preparer is qualified. New rules mean that anyone who gets paid to do your taxes needs a Preparer Tax Identification Number (PTIN). So, first, check if they have one. Also, ask if they’re part of any professional group and if they take regular training classes to stay updated. The IRS is now introducing a new test for preparers who are not enrolled agents, CPAs, or attorneys. If they pass, they will be called Registered Tax Return Preparers.
Check the Service Fees
Make sure to ask about their fees. Stay away from tax preparers who charge based on a percentage of your refund or promise bigger refunds than others. It’s important that any refund you get goes directly to you or into an account in your name. Never let any part of your refund be sent to the preparer’s bank account.
Look into the preparer’s background
Take some time to check if the preparer has had any issues with the Better Business Bureau. Also, check if they have faced any disciplinary actions or have problems with their license. For certified public accountants, check with the state boards of accountancy. For attorneys, look into the state bar associations. And for enrolled agents, check with the IRS Office of Enrollment.
Review the entire return before signing it
Take a moment to go over your tax return before signing it. Make sure you review everything carefully and ask any questions you might have. It’s important to feel confident that everything is correct before you put your signature on it.
Make Sure he is Accessible when you need
It’s important to choose a tax preparer who will be available when you need them. Even after your taxes are filed and the April deadline has passed, you might have follow-up questions, so they should remain accessible.
Check if they offer electronic filing
If a tax preparer files more than 10 tax returns for clients, they’re required to file them electronically unless the client specifically asks for a paper return. Since 1990, over 1 billion individual tax returns have been processed safely through electronic filing. So, it’s a good idea to make sure your tax preparer offers IRS e-file.
Gather and provide all necessary records and receipts to prepare your tax return.
Make sure to give all your records and receipts to help prepare your tax return. Good tax preparers will ask to see these documents and ask you a lot of questions to get a clear picture of your income, expenses, and any deductions you might qualify for. Avoid any preparer who is willing to file your return electronically using just your last pay stub before you get your W-2 that goes against IRS rules.
Final Thoughts
Choosing the right tax preparer is crucial for your financial well-being. With the right qualifications and experience, they can help ensure accurate tax filings and reduce the risk of audits or penalties. TERENCE J. ROMNEY offers more than just tax prep, providing a range of services from bookkeeping to financial planning, supporting all aspects of your financial health.
Take charge of your finances with TERENCE J. ROMNEY. Whether you need tax preparation, financial planning, or bookkeeping services, our experts offer personalized solutions according to your needs. Do not wait for tax season. Schedule a consultation today and see how we can help. Visit our website or call us to learn more.