Questions to Ask Your CPA at Tax Time
Tackling your tax return can be a challenging task. That’s why it’s a
good idea to arrive at your tax return preparation appointment ready with
questions that will help clarify the issues that concern you most. The Iowa
Society of Certified Public Accountants offers these tips on what to ask
your tax preparer at tax time.
What Are Your Qualifications?
There are many different types of tax preparers out there, so it’s good to
find out who you’re working with so you’re sure your return is handled
correctly. To begin with, ask about the preparer’s education and licensing,
and what steps were necessary to achieve them. A CPA, for example, is a tax
and finance expert who must pass a rigorous examination and qualify for
state licensing, which means these professionals have the most comprehensive
and up-to-date knowledge of tax laws and filing procedures. In addition to
asking about licensing and education, find out how long the person has been
preparing returns and whether he or she usually works with clients whose
financial situations are similar to your own.
What Will I Have to Pay in Taxes This Year?
Your CPA will discuss your total tax payment and whether you will owe
additional taxes this year or get a refund. Most important, he or she can
also explain how your income and expenses affected the taxes you will pay so
that you can better understand the steps necessary to minimize your taxes if
possible in the future.
How Can I Lower My Taxes?
Ask your tax preparer if you are eligible to make contributions to an
individual retirement account. If you are, taking that step before April 15
can help lower your taxable income–and your taxes. Otherwise, there’s not
much you can do to reduce the taxes on the return you are preparing now.
However, your CPA can discuss your opportunities for cutting your 2010
taxes. There are many strategies you can use to reduce some of your tax
burden, ranging from small adjustments to more serious steps. Your CPA can
describe which ones apply in your situation.
What Tax Law Changes Will Affect My Return This Year?
Congress has been very active in passing new tax and economic stimulus and
recovery legislation during the last year. In particular, the American
Recovery and Reinvestment Act of 2009 made numerous changes for taxpayers.
That means there may be new rules that will have an impact on people, such
as first-time homebuyers, new car purchasers, those who are paying or saving
for higher education, and anyone receiving unemployment benefits, among
other taxpayers. There are also important new credits and subsidies for
small business owners. Your CPA can explain the new regulations and discuss
how to take advantage of any tax saving opportunities now and in the future.
What If I Think I Made a Mistake on Last Year’s Return?
The IRS will often catch math errors and alert you to them. They may also
get in touch with you if they believe there is information missing from your
return. If you left out income or didn’t claim a credit or deduction, it’s
also possible to file an amended return correcting the mistake. Your CPA can
discuss your options if you find yourself in this situation.
Turn to Your Local CPA
The CPA profession’s 360 Degrees of Financial Literacy offers free
information to consumers on many taxpayer questions at
www.360financialliteracy.org. And remember that your local CPA can offer
advice on the best steps to take when dealing with taxes or any other
financial issue. If you are looking for a CPA, go to
www.findanIowaCPA.com.
