Success Hot Sheet
Get Focused, Get Organized & Get Going! | Vol. 4, Issue 2| Feb. 27, 2007

From Kim Nishida and Ready to Evolve Coaching

Benjamin Franklin said, "...in this world, nothing is certain but death and taxes." And as a business owner, you need to manage your expectations of both.

If the mere mention of taxes makes your head spin, read this issue and get cracking on a plan to take care of business well before the deadlines. Although I can't help you with achieving immortality, hopefully the information here will help take the sting out of tax season.

To your health, happiness, and success,

Kim Nishida
Founder and Head Coach

In this issue:

HOT TICKET

As the president of a chapter of Business Network International, I have the privilege of working with and connecting a wide variety of hard-working professionals. Many are folks I have done business with myself and so I refer them to my clients and contacts with complete confidence.

If you face a headache's worth of paperwork due to your bookkeeping (or lack of) and upcoming taxes, strongly consider hiring a professional who actually LOVES going up against the IRS. Here's the woman I swear by:

Orien J. Pagan, EA and Associates
Tax and Financial
Office: 909-860-6626
Fax: 909-860-6557
Email: orienj@aol.com
Diamond Bar, CA 91765

Feel free to contact me if you have any questions or are looking for a referral to another professional. Trust me, it's so much better than resorting to the yellow pages!

FEATURE ARTICLE

In Danger of Hiring a Tax Fraud? 10 Questions to Ask Your Tax Professional

I met a woman a few months ago who told me the story of how she had the best tax guy ever. She adored him and worked with him for years, up until the day he got indicted for tax fraud. Now she is being audited for each and every year he filed for her. Ouch!

That's enough to scare you away from hiring a "professional", right? And in this day and age of "point and click" you're probably thinking you can take care of your taxes yourself. But before you go out to the office superstore and put out the money for the software, check this out:

  • More than half of US citizens prepare their own taxes.
  • According to the IRS, over 60% of those make some sort of mistake.
  • Tax payers cost themselves an estimated $50 million annually by not claiming all of their appropriate tax credits.

Do you enjoy learning the latest tax laws? Are you organized enough to stay on top of the ever changing forms and rules? If the answers are yes, consider yourself fortunate! Most people actually shut down when it comes to their taxes, playing a "don't ask, don't tell" strategy with their money. How often do you think that game plan pays off?

If you truly don't enjoy doing your own taxes, delegate it to someone who does. Believe it or not, there are tax preparers who love what they do and who would love to save you money. Not sure how to go about hiring the right person? Here are some questions to ask a prospective tax professional:

  1. What are your credentials? Tax preparers usually fall into one of the following categories: certified public accountants (CPAs) who are licensed by the state, enrolled agents (EAs), who are licensed by the government, and unenrolled agents (pretty much everyone else). Be careful because many states do not have licensing requirements for tax professionals so basically anyone can call him or herself a pro.
  2. How much experience do you have? The key here is to ask for experience that is relevant to your situation. A good way to find out if someone has relevant experience is to ask them to describe his or her typical client.
  3. How much professional education do you get annually? Because tax codes and interpretations change every year, it's not enough just to pass a licensing exam. EAs are required to take 72 hours of continuing education every three years. But the requirements for CPAs vary by state.
  4. What is your policy on returning phone calls or emails? One of the most common complaints from clients is that their tax pro won't return their calls. If communication is a priority for you, let them know your expectations.
  5. What is your policy if you make a mistake? Make sure they carry Error and Omission insurance. If they make a mistake, the tax preparer should pay the penalties as well as the interest.
  6. Are you available outside of the tax season? Many tax preparers work only seasonally, the first four months of the year. If you have ongoing needs because you are self-employed or own a small business, make sure you can get attention year round.
  7. Can I get references from other clients? If possible, get two or more references from long-time clients. Ask them about the issues that are the most important to you and get as specific as possible. For instance, how easy is it to get an appointment or have they ever needed help with a crisis?
  8. Do you have any questions for me? It's important that they ask you questions so that they have a clear picture of your situation. There is a direct correlation between how well he or she understands your needs and the quality of attention that you get.
  9. How much do you charge? Tax preparers may bill by the hour, the form, or the overall return. After reviewing your previous returns and interviewing you, they should be able to give you an estimate.

As the corporate tax deadline and April 17th draw closer, now is the time to make some quick, but informed decisions. Take your time and interview at least three different professionals. Pick the one that best matches your needs and style and feel secure in knowing that you have a partner looking out for your best interests.

Copyright © Kim Nishida, 2007 all rights reserved.

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Kim Nishida is the Founder and Head Coach of Ready to Evolve Coaching. As a Personal Success and Small Business Coach, she helps entrepreneurs grow their business through strategic planning, focused action, and accountability. For more information, visit http://www.readytoevolve.com.

Call to Action: If you enjoyed this issue, please help me grow my business by forwarding it to your colleagues, friends, and family and inviting them to sign up for their own subscription.

If you received this newsletter from someone else, sign up for your own free subscription at http://www.readytoevolve.com/hotsheet.htm. Rest assured that I will never release, sell, or give a subscriber's name or email address to any other party or organization. Contact me with any feedback, questions, ideas, or your own personal success stories by sending an email to kim@readytoevolve.com. Many thanks and best wishes to your continuing success.