The IRS just released a fact sheet on what to look for in a tax preparer. Here’s what they say:
- Be cautious of tax preparers who claim they can obtain larger refunds than other preparers.
- Avoid preparers who base their fee on a percentage of the amount of the refund.
- Use a reputable tax professional who signs your tax return and provides you with a copy for your records.
- Consider whether the individual or firm will be around to answer questions about the preparation of your tax return months, or even years, after the return has been filed.
- Review your return before you sign it and ask questions on entries you don’t understand.
- No matter who prepares your tax return, you, the taxpayer, are ultimately responsible for all of the information on your tax return. Therefore, never sign a blank tax form.
- Find out the person’s credentials. Only attorneys, certified public accountants (CPAs) and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection and appeals. Other return preparers may only represent taxpayers for audits of returns they actually prepared.
- Find out if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and holds them to a code of ethics.
- Ask questions. Do you know anyone who has used the tax professional? Were they satisfied with the service they received?
Joe Kristan at Roth Tax Updates has added on to this list with some hints of his own. My favorite is, “Find out if the preparer is affiliated with a professional organization that provides its members with lists of countries without extradition and holds them to a code of silence.” It’s a quite humorous list, well worth reading if you have the time.
If you are seriously deciding about what to look for in a tax preparer, Kerry Kerstetter has a great post well worth reading.
If you are looking for a preparer, he or she will appreciate it if you start your search now rather than waiting until mid-March. Most preparers have a lack of free time as the April 15th deadline approaches.