How to make finding the right tax preparer less of a gamble
In less than a month, taxes are due to be submitted. Individual income tax returns are due to be submitted to the federal government by April 15. Generally, most U.S. citizens and permanent residents who work in the U.S. need to file a tax return. Filing taxes on your own can be a daunting and confusing. You may consider hiring a tax preparer.
According to College Investor, 27% of Americans used a full-service, in-person experience to file their taxes last year.
There are various types of tax return preparers, including certified public accountants, enrolled agents and tax attorneys. According to the IRS, there are 765,470 individuals with current Preparer Tax Identification Numbers (PTINs). Finding the right individual for you amongst a large number of qualified tax preparers can be overwhelming.
The Better Business Bureau offers these tips for hiring a tax preparer:
■ Do your research. Check reviews, websites and past clients’ experiences.
■ Get referrals. Ask friends and family for recommendations.
■ Review preparers’ credentials as some are only qualified for basic matters or assisting you with forms. Enrolled agents, certified public accountants and tax attorneys are qualified to represent clients to the IRS on all accounts.
■ Beware of big promises, such as a tax preparer promising you a larger refund than the competition. Some tax preparers base their fees on the amount of your return and may be likely to use shady tax preparation tactics.
■ Avoid tax preparers who offer refund anticipation loans as you may lose a large percentage of your return to commission fees.
■ Make sure tax refunds are deposited into your bank account, not your tax preparer’s.
■ Provide the preparer with records and receipts to determine things like the total income, tax deductions and credits.
■ Think about availability. Will the preparer be available to help you with errors or an audit?
■ Ask about fees ahead of time. Read contracts carefully and understand how much the tax preparer charges for their services.
■ Review documents before signing anything and don’t sign incomplete forms.
■ If things don’t add up, find someone else. If a tax preparer can’t verify their credentials, has a record of bad reviews from previous clients or their business practices don’t seem convincing, don’t do business with them.
■ Remember that if you hire them, this individual will handle your sensitive personal information — information you need to keep safe from corrupt or fraudulent tax preparers.
For more information about hiring a tax preparer, visit BBB.org or call 937-222-5825 or 800-7765301. BBB can provide a list of BBB Accredited tax professionals and Business Profiles on ones you may be considering. To report a tax fraud, visit irs.gov. You can also report it to BBB Scam Tracker at BBB.org/ScamTracker.