Hiring the Right Professional

Do you take the time to hire the right professional for you?
A recent tax case has highlighted the importance of hiring the right professional.  This case involved a situation where the tax court ruled the IRS instructions were not to be followed, and a higher authority superseded the IRS instructions (in this case The Internal Revenue Code superseded the IRS instructions in Pub 590).
The cost of not hiring the right professional caused an IRA rollover to unexpectedly become immediately taxable, costing the taxpayer additional tax of over $51,000 plus penalties and interest.
So what should you do?  First understand that this is a type of situation that comes up from time to time.  Second, there are strategies that could have been used that would have avoided the situation.  Third, a seasoned CPA who is proficient in developing strategies could have advised that a different method which would not only have avoided the possibility of additional tax, but would have accomplished the intended results.
When hiring a CPA make sure the CPA is experienced in matters that are important to you.  You want someone whom you trust, and who will take the time to help you understand the issues.  You want a CPA who will understand your goals, and help you develop strategies and tactics to help you accomplish those goals.
Jerald Schneider is a Certified Public Accountant providing tax, accounting and financial advice for more than 30 years.  He can be reached at 661-297-1072 or by e-mail at jerald@jeraldschneider.com.