by Steve20

Created on: November 19, 2009   Last Updated: November 21, 2009

How to Find the Right Tax Attorney

Congress keeps talking about simplifying the tax code, yet it doesn't seem to get any easier. If you do not understand the tax system, you probably pay more in taxes than necessary. A good tax professional will cut through the muck and identify tax-reduction strategies that will help reduce your tax bill, possibly increase your deductions, and decrease the likely hood of an audit (which can be triggered by any mistakes you make).

Hiring a professional is not cheap, but you can save a few bucks if you know what to look for. Keep the following tips in mind before you hire anybody:

-Do not hire the first tax adviser you find. You do not buy the first house you look at, so apply the same theory here. You will be telling this person the most intimate financial details of your life. Make sure you interview at least five professionals face to face before you make your final decision. If the person is a true professional, he or she should spend quality time with you, ask a lot of questions, and above all, listen to you.

-Ask the tax adviser about his or her credentials. The recent crackdown on unscrupulous tax preparers in September 1994 has created stricter guidelines for tax preparers who file electronically. This effort screened out preparers with criminal records and severe financial problems who were claiming false refunds on clients electronic returns. Credentials for all other types of tax preparers are listed in the appropriate section below.

-There are flat fees, hourly fees, and fees based on percentage of your return. The method of compensation is important because it can sway an adviser to recommend one course of action over another. By knowing the adviser's motivation, you can guard against any self-serving advice.

Try an Enrolled Agent

Enrolled agents are the biggest secret in the world of tax preparation. They are tax experts who worked for the IRS at least five years as auditors or who have passed a strict two-day test of federal tax law. If you do not mind that an enrolled agent does not have Certified Public Accountant listed after his name on the letterhead, an enrolled agent can be just as good-for much less money.

Enrolled agents are experts in all areas of tax preparation; some even specialize in a few areas of the law. Make sure you determine an agent's specialty before you hire him. The best way to hire an enrolled agent near you is to contact the National Association of Enrolled Agents. They will send you

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