It pays to be cautious when selecting someone to prepare taxes

It’s tax season and filing your taxes 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. A tax preparer is someone who is familiar with the 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, the National Association of Enrolled Agents, the American Institute of Certified Public Accountants 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 the individual.

■ 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 a Preparer Tax Identification Number (PTIN).

■ 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 of how they charge before doing work.

■ Check your return for mistakes before signing and submitting it. Even if you don’t prepare your own forms, you are still legally responsible for what is on them.

■ Watch for red flags. For instance, never use a tax preparer who offers to file your return using your last pay stub instead of your W-2. This is against IRS rules.

For additional help about hiring a tax preparer, visit bbb. org or call 937-222-5825 or 800776-5301. BBB can provide lists of BBB Accredited Businesses in the industry and Business Profiles on ones you may be considering.

John North is president of the Dayton Better Business Bureau.