Tips For Choosing A Tax Preparer

All tax return preparers are
not created equally.
Choose wisely!

The tax filing season is upon us, and many people will be looking for someone to help them file a tax return. All tax return preparers are not created equally, so choose wisely.

This is because it’s ultimately you, the taxpayer, who is responsible for all the information on your income tax return. It’s important to remember that this is true no matter who prepares the return. Here are some tips to remember when selecting a preparer. You should:

Check The Preparer’s Qualifications

People can use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This tool helps you find a tax return preparer with specific qualifications. The directory is a searchable and sortable listing of preparers.

Check The Preparer’s History

You can ask your local Better Business Bureau about the preparer(s) you are considering. Check for any disciplinary actions and the license status for credentialed preparers.

There are some additional organizations about specific types of preparers:

Enrolled Agents: Go to the verify enrolled agent status page on IRS.gov.
Certified Public Accountants: Check with the State Board of Accountancy.
Attorneys: Check with the State Bar Association.

Ask About Service Fees

You should avoid preparers who base fees on a percentage of the refund or who boast bigger refunds than their competition.

Ask To e-File

The quickest way to get your refund is to electronically file your federal tax return and choose direct deposit.

Make Sure The Preparer Is Available

You may want to contact your preparer after this year’s April 15 due date. You should avoid “fly-by-night” preparers.

Provide Records And Receipts

Good preparers will ask to see your records and receipts. They’ll ask questions to figure things like the total income, tax deductions, and credits.

Never Sign A Blank Return

You should not use a tax preparer who asks you to sign a blank tax form. Ever.

Review Before Signing

Before signing a tax return, you should always review it. Ask questions if something is not clear. You should feel comfortable with the accuracy of your return before you sign it. Once you sign the return, you are accepting responsibility for the information on it.

Review Details About Any Refund

You should make sure your refund goes directly to you – not to the preparer’s bank account. You should always review the routing and bank account number on the completed return.

Ensure The Preparer Signs And Includes Their PTIN

All paid tax preparers must have a Preparer Tax Identification Number (PTIN). By law, paid preparers must sign returns and include their PTIN.

Report Abusive Tax Preparers To The IRS

Most tax return preparers are honest and provide great service to their clients. However, some preparers are dishonest. People can report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer.

The Bottom Line

Do some research. Ask around. Many tax professionals offer free consultations. See who feels right for you. It’s YOUR peace of mind that is at stake.