Ten Tips for Choosing a Tax Preparer

It’s the time of the year you are likely to choose a tax preparer to help file a tax return. It is difficult to know who is trustworthy and who keeps up the latest tax laws. Regardless of who prepares the reports and files the return, you are the taxpayer and responsible for all information on your income tax return. 

Before you choose an income tax preparer, you should decide what type of services you need and determine a budget. Is it important that you have the same person prepare your taxes next year? Are you looking for someone to just compute your tax return? Or, do you need someone to act as a financial advisor year-round?
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As a rule, the more complex your tax situation is, the more you will require the advice of someone with specialized experience. For recognized professionals, such as enrolled agents, accredited tax advisors, accredited tax preparers, CPAs and tax lawyers, you may assume a level of special training and experience. For other, you will have to determine the level of their expertise.

Here are tips to remember when selecting a preparer:
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1. Check the Preparer’s Qualifications. Use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This tool helps taxpayers find a tax return preparer with specific qualifications. The directory is a searchable and sortable listing of preparers.
   
   
2. Check the Preparer’s History. Ask the Better Business Bureau about the preparer. Check for disciplinary actions and the license status for credentialed preparers. For CPAs, check with the State Board of Accountancy. For attorneys, check with the State Bar Association. For Enrolled Agents, go to the verify enrolled agent status page on IRS.gov or check the directory. 
   
   
3. Ask about Service Fees. Ask the tax preparer up-front about estimated fees and how he or she expects to receive them. The IRS recommends steering clear of tax preparers who calculate your service fee based on a percentage of your refund. This can lead an unethical tax preparer to boast a larger refund than their competitors or even inflate the figure of your refund when filing.
   
   When asking about a preparer’s services and fees, don’t give them tax documents, Social Security numbers or other information.
   
   
4. Ask to E-File. You should make sure the preparer you select offers IRS e-file. The quickest way for you to get your refund is to electronically file your federal tax return and use direct deposit.
   
   
5. Make Sure the Preparer is Available. You may want to contact your preparer after this year’s April 17 due date. Avoid fly-by-night preparers.
   
   
6. Provide Records and Receipts. Good preparers will ask to see a records and receipts. They will ask questions to quickly calculate such things as total income, tax deductions and credits.
   
   
7. Never Sign a Blank Return. Don’t use a tax preparer who asks a taxpayer to sign a blank tax form.
   
   
8. Review Before Signing. Before signing a tax return, review it. Ask questions if something is not clear. You should feel comfortable with the accuracy of your return before signing it. Make sure the refund goes directly to you – not to the preparer’s bank account. Review the routing and bank account number on the completed return. The preparer should give you a copy of the completed tax return.
   
   
9. Ensure the Preparer Signs and Includes Their PTIN. All paid tax preparers must have a Preparer Tax Identification Number. By law, paid preparers must sign returns and include their PTIN.
   
   
10. 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. Report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If a taxpayer suspects a tax preparer filed or changed their return without the taxpayer’s consent, they should file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit.

If you need assistance pulling together and organizing your records to ensure the tax preparer can prepare your taxes in a timely and accurate manner, please reach out to us here. We would be happy to help.