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Choose wisely!

January 12, 2010

The IRS has issued its annual advice on choosing a tax preparer:

1. Check the person’s qualifications Ask 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.

2. Check on the preparer’s history Check to see if the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs or the state’s bar association for attorneys.

3. Find out about their service fees Avoid preparers that base their fee on a percentage of the amount of your refund or those who claim they can obtain larger refunds than other preparers.

4. Make sure the tax preparer is accessible Make sure you will be able to contact the tax preparer after the return has been filed, even after April 15, in case questions arise.

5. Provide all records and receipts needed to prepare your return Most reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items.

6. Never sign a blank return Avoid tax preparers that ask you to sign a blank tax form.

7. Review the entire return before signing it Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.

8. Make sure the preparer signs the form A paid preparer must sign the return as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return. The preparer must also give you a copy of the return.

While useful, this advice is incomplete, so as we do annually, we'd like to make a few additional suggestions.

Check a preparers professional affiliations. Watch out for preparers whose members provide them with continuing surveillance and hold them to a code of silence.

Check the Preparer's Pulse. Zombie preparers are nothing but trouble.

Check if the preparer has a history. You don't want a preparer to love you and leave you.

Find out about their service expectations. Beware preparers who expect you to shovel their driveway or wash their car.

Make sure the preparer is accessable outside of prison visiting hours. Self-explanatory.

Never sign a blank return in crayon. This is an audit "red flag"

Review the entire electronic return file carefully. Some jokesters like to put in naughty pictures to see if the IRS will notice.

Make sure the preparer signs his own name. His real name is unlikely to be, say, "Elvis Presley," "Abraham Lincoln" or "Barack Obama."

Be careful out there!

Tags: preparers.

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