Inquiries to a tax advisor

John Grobe

We are approaching tax time and many readers are starting to organize their tax information in preparation for filing their tax returns. If you regularly read the TSP Investment Report, you will know that taxes are confusing and that taxes on TSP and IRA are no exception. You may think it’s time to hire a professional to prepare your federal and state income taxes. Here are six things (not necessarily specific to retirement investments) to consider when seeking a tax advisor.

1) When looking for a professional tax advisor, proceed as if you are looking for another trusted advisor. I bet you chose your doctor or mechanic (I was once an auto mechanic) based on a recommendation from a friend or family member. Ask those in your area (or those in a situation similar to yours) who they use for their taxes. Then ask them why they are using that person. I’ve used the same CPA for my taxes for over 25 years, I met him at a Chamber of Commerce meeting, and he’s scrupulously honest about tax law.

2) See what credentials they have. Most serious tax professionals are either CPA (Certified Public Accountant) or EA (Enrolled Agent). Remember that some knowledgeable tax accountants have no title.

3) In most cases, we prefer those who are experienced over those who are just starting out. Ask the tax advisor how long he has worked in his area of ​​expertise and compare this with your requirements. Ask them how they deal with similar situations (e.g. federal pensioners, military pensioners, etc.).

4) What education and training do you have? What did you study in college? Do you have a Masters degree in Taxation? Do you keep up to date with the ever-changing tax law? Ask them about their professional development and the areas in which their last CPE was conducted.

5) Ask about continuity. Depending on your age, you can file tax returns in the coming decades. Some of your most important decisions may not be made for years or even decades. If you are concerned that your accountant will be retired when these decisions need to be made, ask them what their plans are to ensure continuity of advice. Will she or her company continue to represent you in tax matters before the Internal Revenue Service or others? These tax professionals who work for a company can get other employees of the company to pick up your case.

6) Don’t forget to ask about the fees. Fees can be a strain on your budget, but money well spent on professional advice can save you money in the long run.

And here is a point for those readers who are retired. Make sure your tax advisor understands the rules that apply to retirement accounts – especially federal pensions. When you need professional help, make sure the help you are getting is the help you need.

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