3 Commonly Ignored Questions When Hiring a Tax Accountant

There is nothing wrong with doing your taxes, especially if you have a straightforward tax situation. However, if your financial situation changes and makes tax return preparation complex, you need the best tax accountant services in town. Weeding out the fly-by-night tax accountants and zeroing on the right professionals requires that you ask the right questions. This article highlights just a few of them. 

1. Do You Represent Clients in Case of an Audit?

The Australian Tax Office goes through every tax return looking for anomalies and flag any issues. Consequently, the ATO orders an audit on flagged tax returns to review the financial information provided. The audit is also meant to verify if the reported tax amount is correct. While audits are rare for individual taxpayers, you stand a higher chance of being selected if you are a high-income taxpayer. Therefore, if you receive mail from the ATO informing you that they are auditing your tax return, you want a tax accountant to represent you. It will take the pressure off you since a tax accountant will be dealing with fellow tax experts. 

2. Are You Authorised to File Electronically?

Filing tax returns electronically is convenient and fast, and it allows the ATO to send tax refunds quickly. Indeed, tax accountants are qualified to prepare tax returns, but it does not mean that all experts can file electronically on behalf of their clients. The reason is that tax accountants must prepare the Tax Identification Number (PTIN), which authorises them to file clients' tax returns electronically. If a tax accountant does not have a PTIN, the e-filing online service will prevent you from transmitting your form to the ATO. It might lead to late filing and hefty fines. Therefore, ensure that your tax accountant has a PTIN before they begin working on your financial data. 

3. Do You Rely Solely on Tax Programs?

Reputable tax accountants should be able to work out client taxes manually. They should not rely heavily on tax programs because some circumstances can render the software ineffective. For instance, a tax accountant will be stranded if the tax software malfunctions. It leads to delays and, in some circumstances, late filing. Moreover, a tax accountant who understands how to use tax programs and calculate returns manually can explain each step in case you need to seek clarifications.  

If you have more questions, be sure to contact local tax accountants.