Industry Tips
Tax Preparation
Every year the race is on to beat the April 15 deadline to file our taxes. And every year there are new changes to the tax laws which make it more and more difficult to prepare our own tax returns.
If you are planning on hiring someone to prepare your tax returns, follow these guidelines from your Better Business Bureau.
Before choosing an income tax preparer, you need to decide what type of services you need, and how much you can afford to pay.
Research a tax preparer just as you would any other service provider. Ask for referrals from friends, colleagues, or contact national or state associations and ask for their recommendations. It is important to be certain that the person you hire to prepare your tax return has the expertise you want to provide the services you need.
Discuss the cost of the service and ask for an estimate of fees. The fee should be based on the complexity of your return, never on the tax saving or refund. A tax preparer should never guarantee a refund before completing a return. Some preparers offer immediate payment of your return, for a small fee. Keep in mind that this is a loan. If you decide to accept this offer, make sure that you are aware of all the terms. Read the fine print before signing any agreement.
Here are some questions you can ask your preparer to help you evaluate whether he or she is right for you and your tax situation:
- What is your tax preparation training and experience?
- Are you an enrolled agent, certified public accountant or lawyer?
- How do you keep on top of all the changing tax laws?
- How many tax forms do you prepare per year?
- How do you check the accuracy of your work? Is it checked manually or by computer?
- Can you be reached during the year, or only at tax time?
- Can you represent me at an audit? Only enrolled agents, CPAs and lawyers are authorized to represent you before the Internal Revenue Service. Determine that the preparer is willing to represent you should the need arise, and at what cost.
- How is your fee determined?
- What is the turnaround time for the return?
Check with your local Better Business Bureau for Business Reviews on local tax preparers.
