NEW YORK (CNN/Money) -
Tax season is still months away but there are some small steps you might want to take before the end of the year to save big on your taxes.
For that reason, it's a good idea to get professional help now. Finding a tax preparer isn't too hard, there's no shortage of them in any phone book. But finding a good one can be a challenge.
Here are 5 Tips to help you find a great accountant.
1. Are they authorized?
There are three types of accountants. Bookkeepers who have no formal training in accounting, enrolled agents who have passed the EA exam and are licensed by the IRS and certified public accountants (CPAs) who have an accounting degree, have passed the CPA exam and have at least two years of experience in their field.
Because there are tax preparers without any formal license practicing in the field, it can be hard to find out if yours is on the up and up. Even some with formal training can be incompetent, or worse!
Regional IRS staffers often know who the problem preparers are in their districts. The bad news is, if you've unknowingly chosen one of them, your chances of getting audited are higher.
To avoid attracting unwanted attention from the IRS, look for tax preparers authorized by the IRS to file electronically over the Internet. The IRS subjects these tax pros to criminal background checks and even keeps their fingerprints on file.
They also check the preparer's personal tax record and check with regional officials about their business record. You can identify these tax pros by the little yellow lightning bolt logo in their ads and on their stationary.
2. Check their record.
If your accountant is a CPA, you can contact your state's board of accountancy and find out whether your CPA is indeed licensed and whether there have been any disciplinary actions against them. You'll find phone numbers and contact information for offices in every state at www.nasba.org.
You should also ask if there are any disciplinary actions against them. Most CPAs are members of the AICPA (American Institute of Certified Public Accountants). If yours is, you can write to the AICPA and inquire about their record. Write to: American Institute of Certified Public Accountants, Attention: Member Satisfaction, Harborside Financial Center, 201 Plaza Three, Jersey City, NJ 07311.
3. Do your due diligence.
Don't trust your taxes to just anyone. Before you decide on a preparer, meet with them and ask questions.
How long have they been in business? How many or what percentage of their clients have been audited? Have they (themselves) ever been audited? How did they handle it?
Experienced tax preparers will be able to handle these questions easily. Do you trade stocks frequently? If so, you'll want someone familiar with how to handle a return like yours. You may even want to ask for references from satisfied customers. If they're a CPA, you'll want to know if they've ever been sanctioned by the AICPA.
4. Think accessibility.
All too often, in the rush to try and make the April 15th deadline, some consumers will be happy enough if to find someone, (anyone!) who'll get the job done on time. But because tax issues can crop up at any time of year, you'll want to find someone who will be around to help should the IRS come calling with questions later in the year.
Find out if your tax preparer has full time hours even after the April 15th deadline. Many large tax firms like H&R Block and others have Web sites with franchise location information. When you find an office near you, inquire about whether the office is staffed full time during the year.
5. Look things over.
Remember to look things over before your sign anything. It's your signature on the 1040. You are responsible for the information on your tax forms, regardless of who prepared your return. When it comes to collecting back taxes, interest and penalties, the IRS will come looking for you, not your accountant.
Is your social security number correct? Did your preparer claim more dependants than you actually have? Are your charitable deductions inflated? Make sure the information on your return is true and correct to the best of your ability before you sign on the dotted line.
Gerri Willis is a personal finance editor for CNN Business News. Willis also hosts CNNfn's Open House, weekdays from Noon to 12:30 p.m. (ET). E-mail comments to 5tips@cnn.com.
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