Choose Your Tax Preparer Wisely
Choose Your Tax Preparer Wisely: With over half of all taxpayers enlisting the services of a tax preparer, tax preparation has become a major industry. This being the case, the selection of a reputable tax preparer is a task at hand for many at this time of year. Although the services of a tax preparer can be an invaluable asset in saving tax dollars as well as meeting tax deadlines and compliance requirements, choosing one that is both competent and ethical and is often a difficult process.
When choosing a tax preparer, it is important to select a firm or an individual that has an established licensing history and a verifiable physical address. The absence of either of these could mean that the firm may not be around to answer questions and follow up if there are problems once the return has been filed. In terms of licensing it is important to use a preparer with a Preparer Tax Identification Number (PTIN). Since Certified Public Accountants and Enrolled Agents are the only preparers who can represent their clients before the IRS in all tax matters, it may be advisable to seek a preparer with one of these additional certifications if the return is difficult or presents unusual problems. It is also prudent to check out available reviews and ratings of any tax preparer under consideration in addition to making sure there are no registered complaints against that firm or individual.
In light of the points discussed in the previous paragraph, the following is a list of some things to avoid when selecting a tax preparer:
Avoid any tax preparer who does not have a valid 2015 PTIN. Preparer Tax Identification Numbers are renewable each year so any reputable tax preparer should have a current PTIN number.
Avoid tax preparers who want you to sign a blank return or do not sign the return themselves.
Avoid tax preparers who ask you to mail in a paper return rather than filing your return electronically. Most preparers are required to file electronically so a request that you do otherwise should be a red flag.
Avoid a tax preparer who suggests that you deposit a tax refund in to any account other than your own. This practice is not allowed by the Internal Revenue Service.
Avoid tax preparers who base their fees on a percentage of the refund amount rather than on the type and complexity of the return.
Avoid tax preparers who make promises that have no basis in reality such as guaranteeing a high refund without examining tax documents or promising a refund by a certain date.
In summary, the process of selecting a tax preparer should focus on choosing an established individual or tax preparation firm with good reviews and ratings and a verifiable licensing history. It should avoid those who do not meet these qualifications and make extravagant promises that they are unlikely to keep. While a competent tax preparer can be a great asset, choosing the wrong one can be worse than not having one at all!
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