The Internal Revenue Service (IRS) does not make specific recommendations about individuals to hire for tax representation and return preparation. However, there are several factors to consider when deciding whom to hire:
- Complexity and Size of the Transfer:
- For simple, small transfers (less than the annual exclusion amount), you may not need the services of a professional.
- For large or complicated transfers, consider hiring a professional.
- Types of Professionals:
- Attorneys: Typically handle wills, trusts, and transfer documents. They review the impact of these documents on the gift tax return and overall estate plan.
- Certified Public Accountants (CPAs): Often handle the actual return preparation and some representation of the donor in matters with the IRS.
- Enrolled Agents (EAs): Also handle return preparation and representation before the IRS.
- Other Professionals: Depending on the situation, you might also need appraisers, surveyors, financial advisors, and others.
- Experience and Referrals:
- Discuss your needs with several attorneys, CPAs, or EAs.
- Ask about their experience and request referrals.
- Seek recommendations from individuals who have had similar experiences.
- Communication:
- Ensure that the lines of communication remain open with the professional you hire to avoid any surprises.
- Combination of Services:
- People who make gifts as part of their overall estate and financial plan often engage both attorneys and CPAs or EAs.
- Some attorneys handle all aspects of the work, while CPAs or EAs may handle most of the work but cannot take care of legal documents like wills and trusts.
In summary, the choice of whom to hire depends on the complexity and size of your tax matters, the type of professional services you need, and the experience and communication style of the professionals you consider.
Sources:
Publication 947 (2/2018)
T.D. 9012
Publication 526 (2023)
Publication 1518 (11/2012)
Publication 4681 (2023)
Publication 517 (2023)
