By Yazhou Hu, CEO and Founder of Simple Fun Tax
What is in the odds that you can find a tax profession who can work with you and perform your job request well? The answer is “pretty odd”. The reason behind this consists of a mixture of tax professional’s expertise, specialization, experience, preference, and culture. Let us start with culture, Jose Fernandes from Spanish community would likely to be connected to a tax profession who speaks Spanish. Not to mention there are more than 500 different languages on earth, US alone has 20 most spoken languages. That gives us 1/20. Jose owns seven franchised restaurants in the local community, since he expects to owe tax of $1,000 or more, he is looking for tax estimate service for his restaurant business. IRS released 421 principal business activity codes, restaurant is just one of them, that gives us 1/421. Jose should find some a tax professional who is knowledge about franchise tax strategy service. There are about 1/15 firms that does this according to the survey I conducted. On top of this, Jose has four other partners as the owner of this business. Not many tax professionals specialize in filing partnership, especially, Jose’s restaurants are in 3 different states. Local sales tax can be a consideration. For a tax professional who has expertise with state tax filing and sales taxes of those 3 specific states, we can use 3/50 (50 states in US). For the partnership business structure and local sales tax services, that gives us 1/8 (around 1 out of 8 tax professionals works primarily on partnership taxes according to study).
The math is here, 1/20 (culture) x 1/421 (principal business activity) x 1/15 (Franchise tax strategy knowledge) x 1/8 (partnership tax) x 3/50 (State and sales tax experiences) = 3 / 50,520,000…. And that is the chance of less than 0.00000006%.
Of course, I was using extreme circumstances that Jose must choose a tax professional based on above details. However, the point here is finding a good tax profession based on what we need to look for is not easy.
End of the day, it is not really about how much we can trust a tax professional, it is really about the expertise, specialization, experience, work preference and culture of the tax professional. Our current tax professionals can say they are good at the work they do all they long, but do they really know all these details when it comes to professional services? We can make friends with our tax professionals, and we can also make more money with the right type of tax professionals.
Come join Simple Fun Tax market network to experience the power of finding a rare and prestige tax professional.