21 Questions you MUST Ask to Choose the RIGHT Professional to manage your Taxes

Posted by Bruce Mc on Jul 15, 2009 in Choosing a preparer, Opinions, Preparer | 8 comments

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by Nick Hodges

          The Internet super-highway opens up marvelous opportunities for you to harvest tax advice and information from some of the greatest minds at reasonable prices from anywhere in the world.  But it also emphasizes a crucial question:  How do you know whom to trust?  Sharing your intimate, personal financial information with a stranger is problematic at best.  

Here are 21 questions to help anyone choose a tax and/or a financial professional you can trust. 

1. Physical office.  Do they have a physical office that you can visit?  Even if you never have to meet them face-to-face, the professional integrity required of a firm conducting a bona fide business should be considered.
2. Reachable contact person. Is there an actual person who will be ultimately responsible to take care of you and your financial world?
3. Valid licensure. Does their home state licensing board affirm that the tax professional you would like to use has an active license in good standing?
4. Clean history.  If the tax professional is also a registered investment advisor, does their state or the SEC affirm that they have a clean history? 
5. Age of business. How long have they been in business?  If they are too new, they may not have the experience necessary for your unique situation.  If they are nearing retirement, they may not have the interest to stay current with the changing regulations.
6. Size of practice.  Are they a sole-practitioner?  Or do they have an entire team of professionals to help serve you?  If you are dealing with just one practitioner, what do you do if something happens to them?  Do you know who will help you if the IRS decides to coming knocking at your door?
7. Experience of a professional, how big is too big?  Will you have access to the senior professionals in the firm, or are you working with firms so big you are just getting the inexperienced junior preparers?  Those who work at large, international corporations often have the opportunity to use large, international accounting firms, and pay thousands of dollars just to be ignored by inexperienced junior preparers.  Larger is not always the better choice.
8. Reputation of firm.  Does the firm specialize in keeping and building long-term relationships with their clients?  Do you know what are their clients are saying about them?  
9. Related services.  Does the firm offer other services to help you so you can get the “one-stop financial shopping” you need?  If so, what are they offering?  How do they help you understand which services you really need?
10. Name recognition.  Are they nationally-known in their industry? Do they teach other tax professionals?  – The best way to really know something is to teach it to other professionals.
11. Online presence.  Do they have a website?
12. Ongoing support.  Can they continue to help you after you return to the US?
13. Entrepreneurial support.  What if you start a business? Can they continue to help you?
14. Tax forms.  Do they know the proper use and filing of forms. More importantly, can they explain them to you in simple enough terms to help you really understand the tax challenges of your situation?
15. Fees charged.  Are they charging too little for you to receive the quality, professional service your situation requires?
16. Quote for service.  Are they charging too much (sometimes thousands of dollars), or do they hesitate to give you an upfront quote?
17. Personal interaction.  Will a live person speak to you before they take your money?
18. Tax organization.  Will they provide you with a specialized tax organizer to help you gather all the information you are going to need?
19. Tax law updates. Do they send out a newsletter to keep you updated on tax law changes?
20. Information sharing.  Will your personal, private information be shared with outsiders or shipped out of the country for processing?
21. Comprehensive coverage.  Do they offer to go beyond just getting the numbers right, to working with you to get the answers right for your entire financial world?

           Take the time to thoroughly interview the tax professionals you are considering to help you manage your taxes.

          This simple step, interviewing a tax professional, could save you from creating sticky situations in the filing and management of your taxes. 

Nick Hodges,

President of NCH Wealth Advisors

          The above post was edited. I did so in order for this guest post to be relevant to all taxpayers looking for a tax professional. For more very relevant information please see my post Find a Tax Preparer that is right for you, Should I do my own taxes. . ., Choosing a tax preparer. . ., More on “finding a pro”. . .

Also check out my series on the subject that starts with Mistakes Made. . .

Information you need

Posted by Bruce Mc on Jan 19, 2009 in Choosing a preparer, News Flash, Opinions, Preparer, Tax Preparation, Taxes | 0 comments

Released – January 14, 2009 

Affiliate Marketers, Bloggers and eBay Sellers Worried about Understanding and Paying Taxes on Online Income

Ebiz Tax Tips Owner Kristine McKinley Seeks to Remedy Situation by Offering Tax Consulting, Planning and Preparation Services to Address the Unique Tax Needs of Online Business Owners

With the economy in recession and layoffs increasing, millions of Americans are turning to the Internet to earn extra income, some even replacing their full-time jobs with businesses created solely online.  The web has seen a huge increase in bloggers, eBay sellers, affiliate marketers, service providers and other online businesses in the last year.

Online business owners are seeking help in understanding the tax rules regarding online income, including questions such as:

Ø  How do I report my online or 1099 income?

Ø  What expenses can I deduct?

Ø  What is the best business structure for my company?

Ø  Do I need to make estimated tax payments?

Ø  How can I minimize the taxes I pay on my online income?  

Many bloggers, eBay sellers and affiliate marketers would like to use a tax professional for help answering these questions.  Yet, not many tax professionals understand online businesses.  As a result, most online business owners turn to the Internet for tax advice.  But that can be dangerous, and most online business owners want advice from a tax professional who understands online businesses rather than from a forum.

According to Kristine McKinley, founder of Ebiz Tax Tips, online business owners want tax advice, but can’t find tax professionals who are familiar with PayPal, shopping carts, eBay reports and other items that are unique to online businesses. The result is that many online business owners are not getting the advice they seek, and many are overpaying their taxes simply because they don’t know what expenses they can deduct and other strategies they can use to minimize their taxes.

      In an effort to help online business owners better understand the unique tax needs of their businesses Ebiz Tax Tips offers tax advice for U.S. taxpayers who have income earned from online businesses such as eBay, blogging, affiliate marketing, etc. Options for Kristine McKinley’s clients include tax preparation, tax planning, and tax consultations.    

       Kristine McKinley, a CPA, Certified Financial Planner and founder of Ebiz Tax Tips, has been providing tax preparation and advice to individuals and small business owners for 15 years.  For articles, reports, ebooks, teleclasses and other resources please visit www.internetbiztaxtips.com. 

 

Be sure to catch this Pod cast featuring Kristine. eBay Tax Expert - Kristine McKinley.

 

Contact:           Kristine McKinley, CFP, CPA

816-739-4853

kristine@internetbiztaxtips.com

 

 

 

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Next post scheduled for 02/01/2009

Passing the Week. . .

Posted by Bruce Mc on Oct 12, 2008 in Opinions, Week in review | 2 comments

Well you can sure tell it is election time. Less than a month and we’ll be choosing the people we hope will chose the right person to take the fall for “not helping the economic situation. – If I sound a bit bitter, there is a reason.

Anyway there was last week a lot of blogging going on about the candidates and their issues as they pertain to taxes and such. Russ over at Taxable Talk gives us the breakdown of the democratic candidate in his post Taxes Under a President Obama.

Then we have a good look at just plain mudslinging and the truth behind it all in a post from Gerald Prante at the Tax Policy Blog in his post I’m [John McCain / Barack Obama] And I Approve This False Message. If you didn’t realize, you’ll now be informed.

And then as if the political “race wasn’t a big enough issue for you, then how about the bailout? Monday showed how that helped out. From around the world markets fell horribly, not to mention oil went under $90.00 a barrel (oh if you missed it, search the net for what gas was at the pumps the last time crude was down here- it’ll make you mad, or should.)

There is a great post from Andy at $aving to Invest. Covering the above debacle. And you thought last Monday was bad – Economic Indicators signal major collapse ahead Andy looks at the news on Monday that has him concerned. Me too.

Not to be forgotten is the stimulus that a lot of us received. Kelly, author/owner of the TAXGIRL blog writes a great article covering the thought of a second stimulus check in her post Second Checks from IRS NOT Part of Additional Stimulus Package. And lets us all know, “there is no second check coming before election”.

My blogging friend The Wondering Tax Pro has been on a hiatus, getting all his extensions completed. In his stead he had guest post from other tax bloggers. Our assignment was our best tax advice. If you missed it then you need to follow the links as the advice was truly the Best of the Best. On Monday, I was lucky enough to be first up with Best of the Best – Bruce McFarland, on Tuesday Best of the Best – Trish McIntire, and on Wednesday Best of the Best -  Michael Rozbruch.

For some great tax facts and other great links of the same, be sure to check out Peters post 10 Interesting Tax Facts: Three Cheers to Tax Complexification. And if you like this read back on his articles, he is very good. Oh? You know? Then click the RSS button on his site so you don’t miss anything. I did.

Paying Off Debt vs. Investing in this Economic Environment is a great post from Kevin over at No Debt Plan. It covers just what the title suggest and is a must read if you have this question.

On Thursday Kay Bell informs us that the IRS has been “given more leeway to get tough again”. In her post The ‘softer’ side of IRS collections she intros and explains a pilot program the IRS is using to help close the tax gap. The on Wednesday in her post Tax Gap closure suggestions Kay lets us in on what is being looked at (a new committee) as possible means to close the tax gap. Both are must reads from Don’t Mess With Taxes.

We have all heard that the IRS has softened. We all know that the IRS has been real asses when it comes to collecting what is due. With the IRS now given the okay to get tougher we are sure to hear some stories. Not the funny kind either. From Peter Pappas The Tax Lawyers Blog, Horrifying Tax Tales is a great intro for what is to come in my opinion. Agreeably the horror stories are usually from a tax protester, a non-filer, or from someone who doesn’t give the IRS 100% cooperation, but sometimes the horror stories are really already happing. And is going to get worse!

Not much here is there? Hummm

There has been a lot of turmoil in the world and our economic way of life here lately. A failing market, Presidential debates, unemployment on the rise, people losing their homes, 401s destroying losses. . . I just push on with my series, and such seemingly ignoring what is going on. Well I am not. If you are following my blog roll (as you should be), then you already have that information. Most every tax blogger is talking about the above mentioned situations and putting out great advice. So great that I have nothing to add, save the few (sometimes unrelated or silly) comments that I have left on their post.

I am not posting on these events. Why? Well I believe we need to stay focused on all these issues I don’t think getting lost in them is the ideal action either. I am happy to continue to give you the advice on your taxes, and leave the “News” to those who have more time to research those events than I do.

My series continues next week with me on Monday, A guest post from Russell Fox on Wednesday, and Friday a great post from someone who wishes to remain anonymous.

For those of you keeping up, I plan on this going through the month of October. I have only two spots left to fill (providing my two promised come through – and I am sure they will) I still am encouraging anyone who wants to get their two cents in to let me know. Should I end up with more than I will make post on days I don’t usually. To date we have had some great advice, tell us what we are missing.