Can You Improve Your Tax Strategy by Hiring Multiple Tax Accountants?
When faced with a tax situation of above-average complexity, the idea of hiring multiple tax accountants might seem like a prudent strategy. After all, getting a second opinion is wise, right? However, is this approach effective, or would it be more beneficial to find and hire the best accountant who specializes in your specific needs?
Why One Tax Accountant is Often Enough for Average Complexity
For many people, the tax returns handled by major preparers like HR Block and Liberty Tax Services are enough to cover their needs. These services cater to the vast majority of tax returns, where all the income and deductions are accounted for by slips—such as wages, interest, dividends, retirement plan contributions, and withdrawals. In such cases, hiring two separate tax accountants is unlikely to yield significantly different results.
The major players in the tax preparation market invest heavily in training their accountants to handle the vast majority of tax returns. Therefore, the differences among qualified preparers are minimal when it comes to average complexity. As a result, it would be redundant and potentially costly to hire two accountants for the same job, ultimately leading to the same result.
Complexity and the Need for Specialization
When you have income, deductions, or other components that aren't accounted for by slips, you may require an accountant with specialized expertise. In such cases, hiring multiple accountants might offer more value. However, the cost can be substantial, with professional preparation fees typically starting at around $500, and often exceeding $1000 for more complex returns.
The key factor is the complexity and the amount of assets involved. Unless the tax situation is very complex and involves significant financial stakes, the extra cost of hiring two accountants may outweigh the potential benefits. In such instances, you would need to consider the advice from multiple professionals to fully assess your options.
Paying for a Second Opinion
If you still want to seek a second opinion, you can certainly do so. However, you must be prepared to pay separate tax preparation fees for the same return. While this practice is not common, it is not prohibited by law. In my decades of practice, I have never encountered such a scenario, but ultimately, it is a choice every taxpayer can make based on their comfort level and needs.
Regardless of how you proceed, it's essential to understand that all tax preparers work off the same tax laws and regulations. If an accountant is knowledgeable and well-equipped, they should provide the same quality of work. Thus, instead of relying on price differences to make your decision, it's more beneficial to inquire about their credentials, experience, and expertise.
In conclusion, while hiring multiple tax accountants can be beneficial for highly complex tax situations, it is often not necessary for the average tax return. Focus on finding the best accountant who specializes in your specific needs, and avoid wasting money on duplicative services. Always prioritize your financial comfort and seek professional advice when needed.