TOM WHEELWRIGHT | This is What Happens When You Have the Right Tax Preparer

I’m often asked what questions someone should ask their tax preparer to make sure they’ve got the right tax preparer.

I think the questions a tax preparer asks are far more important.


You’re invited to The CPA-Revolution Masterclass with me.

This is a 3 day, transformative educational experience, custom-built for CPAs.

(Plus it includes 20 hours of CPE credit – for FREE!)

Tom Wheelwright’s upcoming CPA class Dec 6-8, 2018.

Click below (or click here) to learn more.

Learn More and Register

Here are 3 questions you definitely want your tax preparer to ask you.

#1: Can You Provide Additional Information to Support Your Numbers?

Your tax preparer should absolutely be questioning your numbers.

The term “GIGO” (Garbage-In-Garbage-Out) is (unfortunately) commonly used in the tax preparation industry. It refers to the following situation:

  • Numbers are provided to the tax preparer that are wrong, either knowingly or unknowingly
  • The tax preparer uses this information “as is” and does nothing to verify the numbers are correct
  • The end product – the tax return – is not accurate

It is not safe to assume that your tax preparer is verifying your numbers. This is why this question is so important.

Some numbers are provided via legal forms, such as W-2s, 1099s and 1098s. These forms provide a certain level of reliability that the amounts are accurate.

However, most business and investing activity is based on the accuracy of the recordkeeping so verifying the numbers is extremely important.

In order to verify your business numbers, your tax preparer needs additional information. This additional information is used to verify that the amounts reported in the recordkeeping match up and make sense.

This additional information may include settlement statements, bank statements, credit card statements, loan statements, purchase or sale documents, organizational documents, prior year tax returns and ownership documents.

While this process may not uncover all errors, it does provide a certain level of reliability and provides the tax preparer with a sense of how accurate the recordkeeping is.

If your tax preparer is not asking for this information, then odds are, your tax preparer is not verifying your numbers.

#2 Can You Provide Personal Books (Financials)?

Your tax preparer should be looking for deductions you may be missing.

An effective way to do that is to look at your books – both your business and personal books. While it is common practice for businesses to keep books, it isn’t common for individuals to keep personal books. Personal books report where your cash goes and that is key to identifying possible deductions.

If your tax preparer is not asking for your personal books or not recommending that you keep personal books, then odds are they are only using what you give them and there’s a good chance deductions are being missed on your tax return.

#3 What is Your Role in Your Business or Investing Activity?

While the first 2 questions gather the numbers to report, this question determines the best way to report them.

Taxpayers, particularly business owners and investors, usually have options when it comes to how income or deductions are reported. Understanding the taxpayer’s role in their business and investing is the key to determining where it can be reported most favorably.

Your role in your business or investing is a significant factor in determining the options available to you. When your tax preparer understands your role, then your options for reducing your taxes are much greater.

If you already have a trusted tax advisor… sure to tell them about my FREE, 3 Day event just for CPAs, the CPA-Revolution Masterclass. Just forward this email, and click here to learn more about the event.

Tom Wheelwright’s upcoming CPA class Dec 6-8, 2018.

We’ve updated our Terms of Use – click here to review them now.

Tom Wheelwright, CPA

To ensure compliance with requirements imposed by the IRS, we inform you that any US federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. If you are not the original addressee of this communication, you should seek advice based on your particular circumstances from an independent advisor.

1501 W Fountainhead Pkwy #650
Tempe, Arizona 85282
United States
(480) 565-8000