Here are tips to keep in mind when choosing a tax preparer:
- Check the preparer’s qualifications. All paid tax preparers are required to have a Preparer Tax Identification Number (a preparer must sign returns and include their PTIN). It is also a good idea to find out if they belong to a professional organization and attend continuing education classes to stay up-to-date. Ask those you know who they use and trust for their tax preparation.
- Ask about service fees. If a preparer claims he can get you larger refunds than others, or if they base their fees on a percentage of your refund, this is a red flag. Any refund should be sent to you or deposited into your bank account, and never deposited into a preparer’s bank account.
- Make sure the preparer is available. As with any good service, a tax preparer should be available if you need to contact him with any questions after you file your return – even after the April 15 due date.
- Provide records and receipts. Decent tax preparers who follow IRS regulations will require your W-2, NOT your last pay stub, and they will also ask to see your records and receipts and ask questions to determine your total income, deductions, tax credits and other items.
- Never sign a blank return. Don’t use a tax preparer that asks you to sign a blank tax form. Remember YOU are responsible for whatever ends up on your return.
- Review your return before signing. Find a preparer who expects you to review your return for accuracy and ask questions before you sign it.
- Report abusive tax preparers to the IRS. If you suspect a return preparer filed or changed a return without your consent, you should also file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit.
Choosing a tax return preparer is vitally important. Even if you don’t prepare your own return, you’re still legally responsible for what is reported. Make sure you are comfortable with your preparer before using their services.