Boy, this stuff is more complicated than I thought. How much would it cost to have a “tax advisor” make the IRA early withdrawal calculation for me?
A Big Six accounting firm (e.g., PriceWaterhouse, Ernst & Young, etc.) would charge a minimum of $600, more depending on how much time they spend. A small local accounting firm or a one man shop might make the calculation for $200 or less. Whatever firm you use, get an “opinion letter” from the tax advisor explaining how the return was prepared, you will need this if you are audited. This opinion letter won’t protect you from paying the 10% IRS penalty and interest charges if your tax preparer makes an error, but at least the IRS won’t charge you with the higher penalties associated with filing a fradulent or negligent tax return if you had good reason to rely on the advice of your tax advisor. If you use a smaller firm, make sure your tax advisor has adequate “errors and ommissions” (i.e., “malpractice”) insurance. Don’t take his word for it. Ask for the name of his malpractice insurance company and get a “binder” letter directly from the insurance company proving that the coverage is
Related Questions
- Boy, this stuff is more complicated than I thought. How much would it cost to have a "tax advisor" make the IRA early withdrawal calculation for me?
- How do I get part of my spouse’s 401(k) or IRA without paying the 10% penalty for early withdrawal?
- How Do You Avoid IRA Early Withdrawal Penalties In A Divorce?
