After having a conversation with a coworker where I asked what questions they’d have for a tax professional, I realized that many people don’t interview the person that plays a significant role in their financial life for the year. With that, I began to think of things you should ask your tax preparation specialist BEFORE having your taxes done and the “Top 10” questions are below. Remember, this is just a starter list. Whatever comes to mind during your conversation should be asked but make sure you interview them.
After all, they work for you.
- How long have your completed tax returns for people?
- Do you have a current PTIN (Preparer Tax Identification Number)? (NOTE: Every tax preparer who is compensated for completing tax returns for other individuals should answer this with a yes. If they do not, ask what year was their last official PTIN issued.)
- Do you have a current EFIN (Electronic Filing Identification Number)? If not, why? (NOTE: While most tax preparers need both numbers, those who utilize electronic software or work through a company tend to work under an umbrella EFIN of the larger organization.)
- On average, how long does it take you to complete a simple tax form (1040EZ)? How much longer does it take you to compete a tax form complete with extra schedules (1040 with extra forms)?
- Which forms are you most comfortable filling out? (NOTE: The more complex your financial situation – you have multiple income streams and qualifications for credits – the more forms your preparer will have to complete. It is easy to get confused in this process so be sure to understand which forms apply to your situation and what your preparer is able to handle.)
- How many clients do you file for in a given tax season?
- How many of your clients have been audited? (NOTE: I encourage people to ask this question because it speaks to the quality of the work. You can also ask if a particular type of client is audited, i.e., a business owner, to get an idea if it’s a simple trend that can be explained.)
- Do you work outside of the regular tax season? Why or why not?
- What advice do you give to your clients concerning their financial status/habits? (NOTE: Most tax preparers are not financial planners/professionals BUT they should have something to offer you concerning your financial situation, especially for common situations like saving for a child’s education or for retirement.)
- How and when can I contact you if I have further questions?
You should never feel pressured into using a service, especially when your finances are concerned. The moment you do, collect your things and run for the hills (or just exit quietly through the door). I hope these questions help you become more comfortable discussing your tax situation and other financial issues.
Since 2010, Courtney has been using her training and expertise to provide affordable, accurate and ethical tax preparation services to those in her community. She firmly believes in the saying, “When you know better, you do better,” and it is always her intent to educate others on things that significantly impact their lives.