According to a survey conducted by NerdWallet a few years ago, more than forty percent of the population in Birmingham seeks the advice of professional Birmingham accountants or professional tax consultants to prepare their taxes.
The same survey revealed that more than 80 percent of the same population never looked for the credentials or qualifications of their tax accountant. Moreover, more than 75 percent of them never asked their tax accountant if he/she would represent the client if a tax-related audit were to occur. The numbers were shocking, taking into account that when you hire a tax accountant or consultant, you are hiring someone with whom you are going to share all of your crucial and sensitive information. For instance, your income details, all of your bank accounts’ information, your social security number, and even more! Today we will share with you a few important elements that you must look into, to find the best Birmingham tax accountants.
1. Make Sure That Your Tax Accountant Has A Law License, Cpa, Or The Designation Of An Enrolled Agent
To ensure that your tax accountant is genuine, look for their credentials of a CPA or a Certified Public Accountant, enrolled agent or EA, or of a licensed attorney. You can also look for someone who has gone through an entire program of the Annual Filing Season conducted by the IRS. Some examples of the requirements of the programs that are hosted by the Annual Filing Season to help tax accountants and preparers go through the process include the Accredited Tax Preparer or ATP, and the Accredited Business Accountant or Advisor. The different credentials require different amounts of education, study, and relevant exams.
2. Ask Your Accountant For Their Preparer Tax Identification Number Or Ptin
According to a law passed by the IRS, a PTIN is required from every one of the Birmingham tax accountants or tax preparers who is in charge of preparing or assisting a client through the process of creating a federal level tax return for compensation. This point is specifically addressed when the client requires some sort of compensation. If someone is just volunteering to help you through the process of tax preparation, then they will not require a PTIN. In addition to this, the IRS also requires that the or tax preparers put their PTIN on the returns of your income tax papers.
What is the one way of finding the best tax preparer or tax accountant near you; one who has all the credentials as per your needs? All you need to do is to go through the directory provided by IRS. The directory includes all the names of registered and recognized tax accountants and preparers all with the IRS and PTIN credentials.
3. Do Not Forget To Compare The Fees Of Your Tax Accountants With Their Competitors In The Field
A recent survey hosted by the National Society of Tax Professionals revealed that the average fee of good Birmingham tax accountants charged for the preparation of a 1040 Form is about 203 dollars, whereas the ones who do not have a flat rate charge typically 138 dollars for each hour. You need to avoid the ones who charge their fees based on how much of a refund they can manage.
We hope that you found our article to be helpful to find the best Birmingham accountants for your tax preparation!
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