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 The 3 Essential Qualities of a Good Tax Preparer

 

If you are looking for a good tax preparer, how do you know when you have found one?

Depending on where you live, there may be hundreds of tax professionals to choose from. Save yourself hours of time and a lot of frustration by boiling it down to the following three essential qualities.  A good tax preparer will have all three of them in abundance.

Quality #1: Experience – and lots of it.
You certainly don't want a newbie, do you? You want a tax preparer who's been around the block a few times.  Or better yet, you want a tax pro who's been around the block a few thousand times! I mean that.  If you find someone who has only done a handful of returns, keep looking. 

Perhaps you are wondering, "How do I find out how much experience a preparer has?"

Easy – just ask. Conduct an interview of anyone you are considering, and be sure to ask how long he's been in the tax prep business and how many returns he's done.  The more, the better. 

Quality #2: Honesty – and lots of it.
You want a tax preparer who plays by the rules.  No funny business.  No funny money.  You want your return to be done right. 

The IRS computers are getting smarter every year. Don't you think they know a fraudulent return when they see one?  Believe it or not, there are tax preparers out there who do not have your best interest in mind.  Avoid them like the plague. Only deal with a tax preparer who promises to prepare your return by the book. Sure, you should take advantage of every legal deduction, and you should pay the least amount of tax allowed by law, and not a penny more. But do it the right way.

Quality #3: Diversity – and lots of it.
By "diversity" I mean the expertise to handle the many different types of tax returns you may encounter over your lifetime.  Perhaps you are thinking that the only type of return you need to have done is a very basic personal income tax return.  And perhaps that is the case – today.  But there are literally dozens and even hundreds of things that can happen to significantly complicate your tax return in the years to come.

For example, what if your employer decides to downsize by outsourcing your department, and they offer you a job as an independent contractor?  You accept the offer, but now you must work out of a home office, keep track of your own expenses, and make quarterly estimated tax payments.  Welcome to the wild and wacky world of self-employment taxation!

Will your tax preparer be able to help you wade through the maze of tax laws that apply to an independent contractor?  And what if you decide to expand your self-employment business because you get offered more contracts than you can handle by yourself.  So you decide to hire an assistant.  Now you are an employer and do you know what that means?  You are making a lot more money than you were as an employee, but now you have a mountain of paperwork to climb, and you better not try to tame that paper tiger by yourself.  You need a tax preparer who knows all about payroll.  And whether you should form a corporation.  And how to set up a retirement plan for your growing small business.  And on and on.

So there you have it.  Experience. Honesty. Diversity. A good tax preparer will have all three.

Many Happy Returns,
Wayne Davies



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Wayne M. Davies Inc.
4660 W Jefferson Blvd, Suite 220, Fort Wayne IN 46804
Phone 260-459-3858
www.GoodTaxPreparer.com
www.FortWayneTaxPreparationServices.com

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Wayne Davies - Good Tax Preparer

Wayne Davies
One Good Tax Preparer


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