Choosing right tax preparer a difficult but important decision
It’s tax season and filing your s can be overwhelming and complicated. Sometimes, it makes the most sense to hire someone to handle them. Instead of rushing to file without a full understanding, consider hiring a tax preparer — someone who is familiar with tax laws, procedures and practices of filing taxes. While they charge a fee for service, they are often well informed about what to do about your taxes.
If you’re looking for someone to handle your tax return, Better Business Bureau offers these tips:
■ Ask friends and family for recommendations.
■ Check online reviews for tax preparers.
■ Verify credentials. Professional tax preparers include enrolled agents, tax attorneys and CPAs. Confirm the preparer is appropriately licensed.
■ Ask the preparer if he or she is a member of a professional organization, such as the National Association of Tax Professionals or the American Academy of Attorney CPAs.
■ Check the preparer’s reputation, years of service and the variety of tax forms completed. What is his or her area of expertise? Make sure you are comfortable with them.
■ Check accessibility. You may need to contact your preparer after tax season is over. Will he or she be available?
■ Inquire as to how the tax preparer intends to keep your personal information safe.
■ Look for a preparer who will e-file your returns. The IRS requires any paid preparer who does more than 10 returns for clients to file electronically via the IRS’ e-file system.
■ Do not use a tax preparer that isn’t willing to sign your return or provide you with an Preparer Tax ID Number.
■ Get everything in writing. Know what preparing your return will cost, what the fee covers, and whether the cost changes if you have a complicated return. Ask if the preparer will represent you in case of an audit. Be leery of any tax preparer who won’t provide information before doing work.
■ Check your return for mistakes before signing and submitting it. Even if you don’t prepare your own forms, you are responsible for what is on them.
Watch for red flags. Never use a tax preparer who offers to file your return using your last pay stub — this is against IRS rules. Be wary of promises you’ll get a refund. Until the preparer knows your situation, there is no way to know whether you’ll get a refund. And beware preparers claiming they will prepare your return for a percentage of the refund.
Visit bbb.org or call 937-2225825 or 800-776-5301. BBB can provide lists of BBB Accredited Businesses in the industry and Business Profiles on ones you may be considering.