How To Find The Ideal Tax Consultant: A Guide

It is vital for expats to have the right tax consultant as they are the sole advisors who help individuals and organisations to pay and save on taxes wherever possible. Since tax consultants have expertise in law and tax, they help you in optimising the taxes you pay after digging deep into your financials, asking you relevant questions and providing you with solutions to get you the most out of your income.

This article will discuss how you can get the ideal tax consultant in three easy steps.

Step-wise guide to hiring the right tax consultant –

1- Know your requirements 

Nobody knows what you want as precisely as you do, and that is why you need to understand what type of tax consultant you need. Ask yourself questions about if you just want the tax consultant to prepare your tax return and file or do you also need financial advice as to how you can reduce your overall tax. Do you require someone who specialises in a single tax system or has knowledge of multiple tax systems?

Make it clear to yourself if you want a tax consultant who will also support you in your international taxation, or someone with only national taxation expertise would be enough. Once you are aware of the exact kind of tax consultant you need, it becomes easier to target.

2- Consult 

Before actually hiring a tax consultant, make your peers your consultants. Consult the other people around you and/or in the same industry and take their advice as to who would be the ideal professional tax consultant for you. You can get referrals from colleagues, friends and family members if they are in the same business as you when you hire.

A professional who is already managing someone else’s taxes in the same domain is highly likely that they already have knowledge of your field of business and will be able to help you through it. You can also read reviews of tax consultants available online to verify the referrals.

3- Choose a few highly reputed tax consultants 

After you have done your research within the industry and verified the tax consultants online, it is time to take the actual step of boiling down to a few advisors.

The first step in choosing the right tax consultant after you have selected a few would be to ask them if they have a preparer tax identification number (PTIN) and a CPA/law license or enrolled agent designation.

Anybody who is into preparing federal tax returns must have a PTIN and a certification under CPA as a public accountant, EA, licensed attorney or a professional who has completed the Annual Filing Season program by the IRS. Only the tax consultants who have the said requirements should be considered to move forward.

Once you start interviewing the tax consultants, ensure that the individual has all the knowledge needed around taxation, solid experience in the field, passion for taxes and someone who can creatively (and legally) help you save money as much as possible. It is also important to ensure the compatibility of the tax consultant with you during the interview.

By this, we mean your financial opinions should match (if not completely, then to some extent), and so should your overall perception because this person is going to have almost all information about your personal and professional life. Hence, the synergy between the two of you is of utmost importance.

Lastly, ask the tax consultants how they approach handling audits and throw some case studies at them so that they are able to answer with real-life examples; this will help you give an idea about the practical approach of the tax consultants and make you choose wisely.

When you are satisfied with a particular tax consultant’s qualifications, synergy and approaches, you can see if their fees fit your pocket and move ahead with working with them. In case the tax consultant charges higher than your expectations, you can move ahead with the second-best professional that fits your requirements during the interview.

Some questions that you can ask the tax constants during the interview –

1. Are there any hidden charges to their basic fees?
2. Have they ever felt an issue after filing an individual’s taxes, and how did they tackle it?
3. Is there anything that you can do to save them the time/work and yourself some money?
4. Have they worked with a similar individual before?
5. Do they have any experience in international taxation?
6. Do they work directly with you or outsource the work?
7. Who is the exact person who will work on the legal enquires and taxations?
8. How long do they think the entire process will take?
9. Are they willing to continue in the long-term if everything fits well?

Conclusion 

Taxes are a sensitive issue, and not filing a tax return properly or not paying taxes on time can result in hefty penalties. This is why it is advisable to always look for the right tax consultant who will help you in this process. You can also take professional financial advice from experts in the industry and understand from them or take referrals about the tax consultants you should interview.