Most individual taxpayers hire professionals for preparing tax statements. Selecting right tax pro is a critical decision that directly affects your pocket. By hiring an efficient tax pro you can save taxes as well as have professional guidance.

On the other hand, hiring an under-qualified and inefficient tax pro could cost you heavily in terms of lost opportunities and incorrect returns. Finding a qualified tax professional is not very simple.

Except Oregon and California, tax preparation industry is mostly unregulated. Absence of regulations and licensing has resulted in availability of tax pros with varied level of skills.

When you are looking for right tax pro make sure about your requirements. For making informed, confident and right decision you should know what you want, what to ask and where to look for right tax pro.

There are different categories of tax preparation professionals. Selecting the right category is the first step towards choosing a right tax pro.
Depending on nature of return, you may need retail tax preparers, enrolled agents, tax attorney or certified public accountants.

Retail tax preparation chains provide fast and convenient service. Selecting such service is also cost effective for an individual tax payer who do not have a complex tax filing scenario.

Expertise and skill level of tax preparers may vary widely because many employees in such retail chains are seasonal. However, some retail chains provide premium service of experts for additional fees. H&R Block is one of the most popular retail tax preparers for millions of Americans.

Some Certified Public Accountants (CPA) have expertise in taxation. They are qualified accountants with specialization or experience in taxation and licensed by state as CPA. They have better knowledge and understanding than retail tax pros.

They are hired to tackle situations involving complex taxation procedures and their fees are higher than retail tax pros. To verify whether you have hired genuine CPA, go to the website of State Boards of Accountancy nasba.org/nasbaweb/NASBAWeb.nsf/WPHP?OpenForm, select website of your state and conduct a name search.

Enrolled Agents (EA) are federally licensed persons specialized as tax consultants and tax preparer. They are hired to solve and prepare statements for complicated tax situations. They have higher fees than retail tax pros but may be not as high as CPA.

Tax attorneys are most expensive option for tax preparation and hired by wealthy individuals whose complicated financial situations demand specialized skills.