Why Hire a CPA
If you thought that a Certified Public Accountant is somebody who only looks into profit and loss accounts, you would be wrong. A CPA is a multi-service provider who, apart from filing taxes, also is a business consultant and legal advisor. An ordinary accountant will have only an accounting background, but every CPA has completed an education program of minimum of five years in a college or university. Besides, CPA's go through stringent testing before they can begin practice as an accounting professional. A CPA can help you with tax deductions, tax exemptions and he assist you with tax planning. You could hire a CPA throughout the year, or just for filing your returns before tax due date.
So when you hire a CPA, you can be sure that he knows what he is doing. Someone who has recently separated from his spouse, gone through a divorce recently, or wants to document his tax deductions on the basis of medical expenses, charitable contributions and mortgages, must all consider the services of a CPA. Apart from the changing and complex tax regulations, an expert CPA helps you avoid making the wrong tax deductions. If at all you made an exemption that you do not qualify for, then the IRS can extract a penalty with the refund amount. You could even miss out on claiming a deduction that you actually qualify for if you do not know about it. You can be sure that the IRS is not going to make that deduction for you, unless you claim it. A CPA advises you on all these matters and more.
Choosing a CPA is not easy. Your first step is to ask reliable sources for CPA references. Most people prefer to do their own research about a CPA before hiring him. A dependable source for everyone is the local chamber of commerce. This is a very reliable source. Then again, you could look up CPAs on the net. Pick a few of them and after having a detailed discussion with them, decide on who you wish to hire. No matter which route you go, make sure that you verify the credentials of the CPA before you hire one. Ask for references of past and current clients, and call these clients to verity their experiences with the CPA.