CPA Tax accountant discusses what to look for in a CPA tax preparer

As a CPA tax accountant I see lots of IRS problems. Few of these problematic tax returns were prepared by CPA tax accountants. Most problems stem from personal tax preparation followed by non CPA tax preparers. So here are some of the things I’ve come to realize over the years as what a good CPA tax accountant should be. I’m not saying I always cover everything below. But at least we try.

Looking over past returns

A good CPA tax accountant reviews last year’s return. Personally I like to look at the last three years. Why?

• I once found $255,000 of Goodwill that hadn’t been claimed on the Client’s taxes.
• You won’t find much mention of this in the Schedule E instructions or the Form 8825 instructions but depreciation is often ignored on rental real estate tax returns. Since the IRS makes you recapture depreciation when the rental property gets sold, you never get that deduction. Sometimes filing Form 3115 helps, if the timeline hasn’t vanished.
• On cancelled debt tax returns I see Folks paying taxes on the entire amount of Box 2 of Form 1099-C, Cancellation of Debt. Amending that tax return to include Form 982, Reduction of Tax Attributes, usually results in a large refund.

CPA responsiveness

When I hear of a CPA tax accountant issue it usually isn’t about the tax return. It’s usually about how responsive the CPA is. We answer e-mail within a day and I personally answer the phone. We ping you when we receive your documentation. Yes, that’s how important Clients are. There’s no sense adding stress on an already rough road. Some Clients abuse this. So eventually, with proper notification, we charge extra for hand holding.

How much experience does the CPA have on your particular issues?

It pays to ask your CPA about relevant experience.

• I handle cancellation of debt tax cases routinely. When I was a brick and mortar CPA we never see a single case.
• Ponzi scheme and investment fraud. The IRS allows generous tax reporting regulations in the year of discovery. I handle a lot of these cases now but never saw one while I was a brick and mortar CPA.
• I handle lots of rental property tax returns. Why. There’s rental real estate properties in my extended family. Ouch.
• I handle lots for S Corporation tax returns. Why? I run my firm as an S Corporation.
• Because of our virtual office I took the time to become proficient in expat tax issues, especially Form 2555.

Even if your CPA tax accountant doesn’t have a lot of relevant experience now, maybe s/he may be willing to do the research.

Check the CPA’s record

Even though the CPA license is national, your CPA has to have a license from a State. If you go online to the North Carolina Board of CPA Examiners and type in my license, 33328, you’ll see I am a registered CPA with no complaints. If your CPA has complaints they could be trivial, like say, a dispute over returning original documentation.

For me this blog with over 600 posts helps most Client’s past the getting to know you stage. What you read is what you get.

Testimonials

You can see testimonials on this website. Some from CPAs. I’m most proud of the ones that say I made their lives less stressful.

Price quotes

I won’t give a price quote until I look at least the last time return. Why? There could be 10 rental properties and a hundred depreciation schedules to create. A few years ago I had a Client go to another CPA because he didn’t want to wait for a price quote based on work. The other CPA said $5000, sight unseen, all up front. My quote was about $3500 with some flexibility for payment.

Appointments

I deal with folks in multiple time zones. So I offer extended availability by appointment, especially for over sea Clients. Most CPAs won’t do that. Sometimes I wish I didn’t.

Intimidation by nomenclature

The IRS is intimidating because of all the jargon a peculiar style of technical writing. Actually, because of the complexity and wide variety of circumstances, that’s the best they can do. But your CPA shouldn’t talk over your head. With some CPAs that’s secondary to power and control. Other times it means the case is so complex the fee should be high. I help you understand whatever you want to understand and leave the rest alone.

Convenience

Our virtual office is so convenient even our local Clients use it.

Hope that helps.