Finding a tax professional who can file your taxes correctly can be a challenge for many family child care providers.
The reason is that there are a number of unique tax rules affecting providers that many tax professionals do not fully understand.
Here are some articles I’ve written that may help you find, choose and work effective with a tax professional:
How to Find a Tax Professional: The simplest way to find someone would be to talk to providers in your area and ask if they use tax professionals and if they are satisfied with the person. If you are a member of the National Association for Family Child Care you have access to a tax preparer directory that I created many years ago. Sign onto their website (www.nafcc.org), click on Business Center and then click on Taxes.
A tax preparer who has a credential (CPA, Enrolled Agent, or even worked previously for the IRS) does not necessarily mean that they will prepare your taxes correctly. To find out if the person understands your business, ask them these questions from the following articles:
Sometimes IRS tax rules are not clear and you may have a difference of opinion with your tax preparer about what you can deduct. If so, these articles may help:
Lastly, you need to know how to deduct your tax preparer fees: How to Deduct Your Tax Preparer Fees.
2016 Family Child Care Tax Companion
Each year I update this book for providers who use tax preparers. It contains a series of worksheets for you to fill out and then give to your tax preparer so he/she knows what to put on your tax forms. It also contains a chapter that answers many questions dealing with the unique tax issues affecting providers and cites IRS authorities you can use to resolve any disputes with a tax preparer or an IRS auditor.
The 2016 Family Child Care Tax Companion is now available!
Note: The 2016 Family Child Care Tax Workbook and Organizer is also now available. It is for providers who do their own taxes and explains how to fill out each federal tax form, line-by-line.
Tom Copeland – www.tomcopelandblog.com