How to Pick a Good Tax Adviser

Choosing a professional, however, might seem as daunting as tackling your taxes. Tax preparers like H&R Block and Jackson Hewitt offer reliable service for a reasonable fee, and often (but not always) employ certified public accountants. But they do little more than fill out the forms on your behalf, working only with the information you give them.

If you have a very complicated return, or are looking for a more thorough analysis of your situation -- including planning advice -- you should consider finding a CPA in your area. Nothing beats a friend's recommendation when choosing a professional, but if you're at a loss you can check with the American Institute of Certified Public Accountants for suggestions.

Many financial planners -- particularly those with the designation of certified financial planner (CFP) -- are knowledgeable about the tax implications of your portfolio, but may not be capable enough, or even inclined, to evaluate just how much taxes can affect your entire financial life. The more sophisticated tax planning you need, the more you'll want a CPA.

Many CPAs also are financial planners -- either with the CFP accreditation or the CPA-only designation of Personal Financial Specialist, granted by the AICPA -- and can help you approach your finances holistically, not just in the area of tax planning. But even a CPA can't handle all aspects of tax planning; if you're interested in drawing up an estate plan, a CPA can help with the basics, but you'll eventually need to see an attorney.

While long-term planning such as portfolio overhauls and estate preparation won't necessarily have an immediate impact on your tax picture, evaluating your overall situation by year's end could very well enable you to save some money in the short (as well as long) term. Any "ordeal" that ends with more cash in your pocket can't be all bad, right?

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