FOR IMMEDIATE RELEASE: January 2011

Choosing a Tax Professional: What You Need to Know

Taxes seem to get more complicated every year, and they also seem to take a bigger bite out of your wallet. That’s why it’s important to get the best advice when you’re ready to tackle your annual tax return. The New York State Society of CPAs recommends asking these questions when you’re selecting a tax professional.

What Makes You the Best Person to Do My Return?

Before you pick a tax professional, be sure to ask about their education, experience and licensing. Taxes can be confusing, so you want to have the most highly trained person on your side. Remember that CPAs are state-licensed professionals who have to pass the Uniform CPA Examination, a rigorous four-part, 14-hour test. They also must meet their state’s education, ethical and work experience requirements to earn their license. In addition, CPAs are required to meet ongoing high standards for continuing education and ethics. That’s why so many people turn to CPAs each year for help with tax return preparation.

Can You Explain Your Qualifications to Me?

Don’t assume someone is qualified just because of their job title. Did you know, for example, that all CPAs can be considered accountants, but not all accountants are CPAs? Many people who call themselves “accountants” or “tax preparers” may well have minimal qualifications or experience. If you want to receive advice from a highly skilled professional, be sure to ask if the person you are considering is a CPA.

How Can You Help Me Save Money on Taxes?

Because of their extensive experience, CPAs can usually spot issues you should address or opportunities you are missing based on what they see in your tax return. You may not be aware of money-saving deductions or credits, for example. Your CPA will recommend smart steps you can take to enhance your tax or general financial situation.

What New Tax Laws May Affect My Return?

Changes in tax legislation can have a significant impact each year. For example, under a new law enacted last July, qualified homebuyers may be eligible for a credit of 10 percent of a home’s purchase price—up to $8,000—if you went into contract to buy a principal residence by April 30, 2010 and closed on the home before September 30, 2010. On another front, if you made energy-efficient improvements to your home during the last year, you may qualify for a residential energy property credit. And business owners may be eligible for new incentives and opportunities as a result of the Small Business Jobs Act of 2010. Your CPA can tell you more about how to take advantage of new opportunities, and address challenges, in recent tax legislation.

How Else Can You Help Me Improve My Financial Situation?

While filing your return is your main concern right now, tax time is also a great opportunity to take stock of where you stand financially and consider necessary changes. What are your most pressing financial concerns? What issues keep you up at night? Whatever they are, the chances are that your local CPA has tackled a similar challenge with other clients. CPAs work with individuals and businesses in their communities throughout the year, not just during tax season. They help clients with their tax planning as well as many other financial issues.

Consult Your CPA

Working with a CPA offers reassurance that the job will be done right. If you have questions about your tax situation, or any other aspects of your finances, turn to your local CPA. He or she has the answers you need.