It is important to hire a good small business tax preparer in Dallas, Texas. Getting the proper assistance can help your business save money. It is ideal to build a long-term relationship with a tax expert so you won’t be stranded during the tax season.
According to research by Zippia, there are over 56,384 tax preparers in the United States. 71.8% of them are women, while 28.2% are men.
Since your tax preparer is important to the financial health of your business and will help you reduce stress all year. Therefore, spare some time to research the types of experts, their duties, and how to choose the best. This article will explain how to hire a small business tax preparer in Dallas, TX.
Types of Tax Advisers In Dallas
These days, anyone can declare themselves an expert in taxes since tax return preparers are not required to hold an IRS licence. However, check to ensure that the person you want to hire is a member of either:
1. Enrolled agent (EA)
The IRS issues a licence to an EA. To become an enrolled agent, the individual has to either pass an examination, or have not less than five years experience working for the IRS.
2. Certified Public Accountant (CPA) and others
Each state regulates and licenses CPAs. CPAs in Dallas do difficult accounting and prepare tax returns. They work for businesses with complex returns. You can either hire a large CPA company or a small one, depending on your budget. Big CPA companies are expensive, while small ones are affordable and better for small businesses.
3. Tax attorney
A tax attorney, popularly called a tax lawyer, is a lawyer who focuses his practice on taxes. They are attorneys with specialized training in tax law (L.L.M. in taxation). In most cases, they are involved in tax analysis, client advice regarding the tax ramifications of particular transactions, and tax litigation involving disputed positions.
Tax attorneys are expensive to hire, especially in metropolitan states like Texas. Not all small businesses can afford them. However, you should speak with one if you have tax issues, need assistance with business or estate planning, are facing IRS enforcement action, or require legal counsel for a court case.
No matter what kind of professional your company needs, make sure you hire someone who has expertise in working with small businesses. Finding someone who is well-versed in your particular line of work or industry is preferable.
Benefits Of Hiring A Small Business Tax Preparer
There are several ways tax pros in Dallas can help your business, depending on your current issues. They can help you with the following:
- Basic tax information and advice: Your expert should be your go-to for all information concerning taxes and should always be available to advise you on how to solve business issues.
- Record keeping: You need to keep business records such as income, expenditures, and other transactions to know the amount that you will pay in taxes. However, if you detest keeping records, have your tax professional put up a record-keeping system specifically for your business.
- Tax form preparation: Most companies can gain from having a pro prepare their tax documents. Even if you do your tax filing by yourself, you can at least get a tax expert to help you review it before submitting it to the government. The tax expert can identify tax deductions that neither you nor your tax software noticed, as well as any potential red flags.
- Advice on how to deal with the IRS: The IRS is the agency in charge of revenue service of the federal government of the United States of America. They are in charge of federal taxes. A taxation pro can advise you on what to do if you are dealing with the IRS alone.
- Representation when dealing with the IRS: An attorney, CPA, or enrolled agent can represent you before the IRS — so you don’t have to deal with it at all. A good tax pro knows how to handle the IRS bureaucracy.
How to Choose the Best Small Business Tax Preparer in Dallas
When hiring a small business tax preparer in Dallas, avoid people who claim that they can get larger tax refunds than others and those who claim they can “guarantee” you an instant result.
Another set of preparers to avoid are the professionals whose fees are based on a percentage of your refund. Stay away from them by all means.
The following steps will guide you on how to get a good small business tax preparer:
- Personal referrals: Personally, I like hiring people based on personal referrals. These referrals can come from family and friends, business partners, especially those that are doing your kind of business. You will feel safer and relaxed when you are working with someone who was recommended to you by someone you know personally.
- Check adverts: People advertise their service in newspapers, phone books, journals, directories, etc. You can check them out to see if you will find a tax pro who will meet your requirements.
- Referral panels and professional associations: Check with the CPA and bar associations in your area. The National Association of Enrolled Agents (www.naea.org) can help you find an Enrolled Agent. A referral from these organizations or associations should not be taken as a recommendation or a seal of competence. Do thorough research on whoever you want to hire.
- Interview shortlisted candidates: Pick at least 3 candidates from as many as possible and interview them. If out if they have experience and consistency. Furthermore, know if the firm or individual will be available whenever you need them.
- Test their skills: A good tax preparer should know about the IRS and must be able to handle small business tax problems. Ask them questions from online tax and legal information. Inquire as to whether they have defended clients in front of the IRS, especially during IRS audits.
- Ask yourself questions: As you complete the selection process, take a moment and ask yourself if the tax expert makes you feel confident, appears knowledgeable, and appears capable of defending you before the IRS. Do you feel comfortable working with him or her?
- Take your time: This is an important point. Go one step at a time. It is better to be slow and get what you want than to be fast and make mistakes. Don’t rush to hire. The best time to look for a taxation expert is during fall or summer, not the tax season (January through May).
Ensure you understand the cost of hiring tax preparers in Austin, TX, and the amount to pay in advance for their services. This will help you avoid any confusion in future. Some have a fixed rate for services such as preparing tax forms, accounting, and bookkeeping.
The fees may be subject to negotiation. You will get a discount if the taxation expert sees you as a long-term customer. Regardless, when you reach an agreement with the professional, ensure you have a written agreement to backup in case of future tax bill dispute.
Conclusion: How To Hire A Small Business Tax Preparer
The type of tax professional that you hire will determine how far your business will go. When hiring a small business tax preparer in Austin, hire someone who will be available to you once the return has been submitted and who will attend to your needs. No business owner wants to hire someone who won’t be available when you need them most.
Furthermore, get referrals from family and friends, especially people who are in the same industry. You can consider an enrolled agent, a CPA, or an attorney. Keep in mind that e-filed returns are often processed faster than the ones sent through mail. Since the mailed tax returns are subject to review, the time frame for the processing depends on the treasury, not the preparer.