How to Choose the Right Tax Advisor in Burbank

Nearly 60% of Americans hire a tax professional—and for good reason. With the ever-changing tax code and rising IRS scrutiny, even a small filing mistake can cost you time, money, or trigger an audit. In Burbank, where freelancers, business owners, and investors are common, working with a skilled CPA, Enrolled Agent (EA), or tax attorney can make all the difference. ⁽¹⁾

The right advisor not only ensures accurate returns but uncovers deductions you may miss, helps you stay compliant, and provides audit representation if needed. The IRS warns that hiring the wrong preparer can leave you “financially hurt”—so making the right choice isn’t just smart, it’s essential.

Why the Right Advisor Matters — Local Tax Risks in Burbank

Benefit	Why It Matters	What a Tax Advisor Does
Maximize Savings	Missed deductions can cost you money.	Identifies credits and deductions (e.g., retirement, business, investment losses). ⁽²⁾
Avoid Costly Mistakes	Errors may lead to audits, penalties, or lost refunds.	Ensures your tax return is accurate and IRS-compliant. ⁽³⁾
Audit Support	Facing the IRS alone is stressful.	CPAs, EAs, and tax attorneys represent you fully during audits and manage communications. ⁽⁴⁾
Peace of Mind	Worry-free filing is valuable, especially during audits.	Offers clarity, protection, and deadline assurance.

Credentials & Licensing — ATF’s Trusted Professionals

Tax professionals come with different credentials and legal rights. In the U.S.:

CPA (Certified Public Accountant): Licensed by a state board of accountancy. Requires 150+ college credits, CPA Exam, experience, and continuing education. ⁽⁵⁾ Offers tax prep, financial planning, and more. All CPAs can represent clients before the IRS.
EA (Enrolled Agent): Licensed by the IRS. Earned by passing the Special Enrollment Exam and a suitability check. Focuses exclusively on tax. Must complete continuing education every three years. Can represent clients on all IRS matters and are highly knowledgeable in federal tax law.
Tax Attorney: Lawyer who passed a state bar exam, often with an LL.M. in Taxation. Licensed by courts or bar associations. Specializes in legal tax strategy, disputes, and litigation. Can represent clients before the IRS and are the only ones who can automatically appear in U.S. Tax Court and federal courts.

Specialized Experience — ATF for Crypto, Rental, Self-Employed

Beyond credentials, your advisor should have relevant, hands-on experience.

If you hold investments, retirement accounts, or rental property, look for someone skilled in capital gains, depreciation, and business deductions. Many tax professionals specialize in industry—construction, entertainment, healthcare—so find one familiar with your field.

For cryptocurrency, choose an advisor up-to-date on IRS guidance. Crypto is taxed as income or capital gains per transaction, and mistakes can lead to harsh IRS penalties. Sites like Koinly only list CPAs and attorneys “well-versed in cryptocurrency trading, mining, and other crypto income.” ⁽⁶⁾

If you own real estate, your advisor should manage mortgage interest, property taxes, depreciation, and 1031 exchanges. Small-business owners need experts in entity structures (LLC vs. S-corp), payroll, and business expenses.

As noted in tax guides, having a business or diverse investments creates “complex tax situations” best handled by someone with proven experience. Always ask if they’ve worked with clients like you — and how they’ve added value.

Fee Structures & Transparency at ATF

Tax advisors charge in different ways, and fees should always be upfront and clear. Common fee models include:

Fee Model	Description	Best For	Notes
Flat (Fixed) Fee	A set price for a specific service or type of return	Standard filings (e.g., Form 1040)	Predictable and straightforward
Hourly Rate	Billed based on time spent	Complex cases, tax planning, audit support	Final cost varies based on time and complexity
Per-Return or Form Fee	Charges based on each form/schedule prepared	Self-employed, business owners, investors	Extra fees for forms like Schedule C, K-1s, etc.
Outcome-Based/Percentage	Fee tied to refund amount or tax savings	Avoid this	Unethical and discouraged by the IRS – may indicate a dishonest preparer

Consultation Checklist: What to Ask ATF

When interviewing a prospective advisor, be prepared to ask about their qualifications and services. Important questions include:

✅ 1. What are your credentials?

Ask if they are a CPA, EA, or Tax Attorney, and if they have a Preparer Tax Identification Number (PTIN). These credentials show they’ve been vetted by regulatory bodies.

✅ 2. How much experience do you have?

Inquire how long they’ve been in business and whether they’ve worked with clients like you (e.g., small business owners, high-income individuals, specific industries).

✅ 3. Are you available year-round?

Tax issues can arise anytime. Ask:

“What is your availability after April 15?”
A reliable advisor offers year-round support for tax planning, IRS notices, and questions.

✅ 4. How do you handle IRS audits or notices?

Ask:

“What happens if I get audited?”
Find out if they offer representation, who handles it, and if there are additional fees involved.

✅ 5. What is your fee structure?

Understand whether they charge a flat fee or hourly rate, and request an estimate in writing.
Avoid anyone who bases fees on your refund or makes guarantees.

✅ 6. Who will prepare my return?

Clarify if the person you’re speaking with will do the actual work. If staff or junior preparers are involved, ask about their qualifications.

✅ 7. Can I see client references or reviews?

Reputable advisors are happy to share references or testimonials. Also check independent platforms like Google, Yelp, or the Better Business Bureau.

Verifying Credentials & Reviews Locally

Before hiring, always verify your tax advisor’s credentials and reputation. Here’s how:

IRS Directory: Use the IRS Directory of Federal Tax Return Preparers to confirm if your advisor is listed as a CPA, EA, attorney, or AFSP participant. It’s a simple way to ensure their license is current.
Professional Boards: Check CPA licenses through your state’s board of accountancy. For attorneys, use your state bar association’s directory. To verify enrolled agents, ask for their IRS enrollment card or search IRS resources.
Industry Associations: See if they’re members of groups like AICPA (CPAs), NAEA (EAs), or NATP. Membership signals professionalism and adherence to standards.
Online Reviews & BBB: Search their name or firm on Google, Yelp, and the Better Business Bureau. Look for complaints or red flags. Sources like Kiplinger recommend reviewing their BBB rating and history.
Referrals: Ask friends, peers, or colleagues if they recommend someone. Referrals are especially useful for small business owners or first-time filers.

Red Flags & How ATF Avoids Them

Watch out for these warning signs when choosing a tax advisor:

🔴 Promises of big refunds: No one can guarantee a refund. The IRS warns against preparers who claim they can get you the biggest return or base fees on refund size.

🔴 Refund-based fees: Charging a percentage of your refund is prohibited. If a preparer suggests this, it’s a red flag.

🔴Lack of credentials: Be cautious if they won’t provide their CPA license, EA enrollment card, or attorney bar info. Legitimate pros will always share proof.

🔴 Refuses to sign or share your return: Paid preparers must sign your return, include their PTIN, and give you a copy. Never sign a blank or incomplete return.

🔴 Illegal suggestions: Any advice to fudge numbers or use someone else’s PTIN is a major red flag. Walk away.

🔴 Too cheap or rushed: Unusually low fees or pressure to sign quickly often mean shortcuts or scams. A reputable advisor allows time to review your return carefully.

When DIY Isn’t Enough — How ATF Helps

Situation	Why You Need a Professional
Multiple income sources or states	Freelance/1099 income, multiple states, or business income adds filing complexity.
Investments and property	Selling stock, crypto, RSUs, or real estate involves capital gains and complex deductions.
Self-employment	Requires handling expenses, payroll, self-employment tax, and possible LLC/S-Corp setup.
Major life changes	Events like marriage, divorce, inheritance, or retirement rollovers can impact your tax outcome.
Back taxes or audit notices	IRS letters or unfiled returns require legal representation and accurate negotiation.
Estates, trusts, or high-net-worth	Estate tax filings, FBAR, or foreign assets carry strict compliance and penalties.

Final Verdict & Next Steps — Schedule a Free ATF Consultation

Credentials & Licensing
Ensure they hold a valid CPA license, EA enrollment, or attorney license. Verify via the IRS directory or your state board.
Specialized Experience
Ask if they’ve handled cases similar to yours (e.g., crypto, rentals, small businesses). Request examples or case studies.
Fee Structure
Confirm if fees are flat or hourly and what’s included (e.g., audit support). Avoid anyone charging a percentage of your refund.
Availability & Communication
Check if they offer year-round support and are locally accessible (especially if you’re in Burbank). Assess their responsiveness.
Reputation & Reviews
Look for strong online reviews, BBB ratings, and references. Ensure they have a clean record with no complaints or disciplinary actions.

Conclusion

Navigating taxes doesn’t have to be overwhelming. Whether you’re dealing with a complex return, facing an IRS notice, or simply want to maximize your refund with confidence, having the right tax advisor by your side can make all the difference. At American Tax Fixers, we combine trusted expertise with personalized support to help you stay compliant, minimize liability, and protect your financial future.

Ready for stress-free tax filing and year-round support?
Let’s get started — schedule your free consultation today and take the first step toward smarter, safer taxes.

Frequently Asked Questions

What’s the difference between a CPA, EA, and tax attorney?
CPAs are state-licensed and trained in accounting, financial planning, and taxes. EAs are federally licensed by the IRS and focus solely on tax prep and representation. Tax attorneys are lawyers with deep tax law knowledge who can represent clients in Tax Court. All can represent you before the IRS, but CPAs are best for planning, EAs for filings and audits, and attorneys for legal or estate issues.
When should I hire a tax advisor instead of filing myself?
If you only have W-2 income and no complications, DIY may work. But if you have a business, 1099s, crypto, real estate, property sales, or face an audit, hire a professional. First-time filers with complex income or inheritance issues should also get help.
How do I verify a tax advisor’s credentials?
Ask for their CPA license, EA enrollment, or law license. Verify through the IRS Preparer Directory, your state’s board of accountancy, or the state bar. Check BBB ratings and professional memberships—reputable advisors won’t mind.
What questions should I ask before hiring?
Ask: What are your qualifications? How long have you practiced? Flat or hourly fees? Will you represent me in an audit—any extra cost? Are you available year-round? Can I review the return before filing? Can I see reviews or speak to past clients?
Can a tax advisor help with old IRS issues or audits?
Yes. CPAs, EAs, and tax attorneys handle back taxes, filings, audits, and payment plans. Attorneys can appear in Tax Court. Many offer audit protection or IRS resolution services—seek help if you’ve received a notice or owe back taxes.

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