How to Choose the Right Cryptocurrency Accountant
Cryptocurrencies have gained much popularity and this has made authorities to carefully look into the asset. The IRS issued new cryptocurrency tax guidance that one has to comply with. To make sense to this guidance, you need to hire an expert. However, choosing one is hard since they are too many. Below are tips for choosing a cryptocurrency tax accountant.
You should reconsider a tax accountant who does not lodge electronically. The law states that tax accountants should file returns electronically through the IRS’ e-file system. In case an accountant does not offer to lodge electronically, the implication is that he/she will not do as much work as he/she claims and that it is more likely for them to make mistakes since they have no software o cross-check and validate their mistakes.
Check an accountant’s qualifications. Before handing over your financial reports to an accountant, you need to look at his/her qualifications. New IRS regulations state that any person who is paid to prepare tax returns must have PTIN. Make sure you avoid any tax accountant who refuses to disclose this credential to you or does not have it. Also, familiarize yourself with various types of tax accountants to know what certification or education they should have. For instance, registered tax return accountants have to sit for an IRS examination and complete fifteen hours of continuing education each year. These accountants can represent you before the IRS for audits only. An enrolled agent can represent you in all tax matters. They have to pass an IRS examination and complete at least seventy-two hours of continuing education every three years. A tax attorney or CPA accountant is subjected to different qualifications depending on your state’s law.
Be keen on affiliations. You need to be sure a tax accountant will stand out as far as tax services are concerned. You, therefore, need to ascertain that a potential tax accountant belongs to a highly-reputed professional organization. Such organizations hold members to higher educational and ethical standards and having affiliations can tell a lot about a tax accountant’s reputation.
Put a tax accountant’s history into consideration. Just because a person is professionally qualified for tax return preparation does not automatically mean they are the best for your job. If they have a questionable history, you should know. You should check with the BBB to see any complaint lodged against a given accountant. Also, check if an accountant has been subject to disciplinary actions as well as if they have up-to-date licenses. You can get this information from your state bar association or state accountancy board. For an enrolled agent, check with the IRS. Also, talk to coworkers, family members, and friends who have ever hired a tax accountant to know how trustworthy they are.
Look into availability. Once the tax season gets near, tax accountants crop up everywhere. Some of them are affiliated with reputable companies that offer year-round services but some vanish as soon as the tax season comes to an end. This can be problematic should you have tax queries or require your returns to be amended later.