Choosing a Tax Preparer

If you decide not to prepare your own tax return, it is important to carefully choose a tax return preparer. You may be eligible to use a volunteer tax return preparer through a program such as the IRS Volunteer Income Tax Assistance Program (VITA). However, if you decide to use a paid tax preparer, it is important that you find a qualified tax professional. Taxpayers are responsible for everything on their return even when it is prepared by someone else.

Most reputable tax return preparers will request to see your records and receipts and will ask you many questions to determine your total income and your qualifications for expenses, deductions, and other items. By doing so, they have your best interest in mind and are helping you avoid penalties, interest, or additional taxes that could result from later IRS contacts.

Tips for Choosing a Tax Preparer

While most tax return preparers are professional and honest, taxpayers can use the following tips to choose a preparer who will offer the best service for their tax preparation needs.

• Plan Ahead. Choose a preparer you will be able to contact after the return is filed and one who will be responsive to your needs.
• Get References. Ask questions and get references from clients who have used the tax professional before. Were they satisfied with the service received?
• Research. 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. You can contact these organizations by looking in your local telephone directory or on the Internet.
• Determine if the preparer’s qualifications meet your needs. Is the preparer an Enrolled Agent (EA), Certified Public Accountant (CPA) or Attorney? Only enrolled agents, CPAs, and attorneys can represent taxpayers before the IRS in all matters including audits, collection actions and appeals. Other return preparers may represent taxpayers only in audits regarding a return they signed as a preparer.
• Ask about tax preparation fees. Try to obtain a clear estimate, preferably in writing, for the preparation and filing services.
• Understand Refund Anticipation Loans (RALs). RALs come with expensive fees and if you e-file your tax return with the IRS, you can get your full refund directly from the IRS in as little as 10 days – without having to pay any loan fees.

What to Avoid When Looking For a Tax Preparer:

• Avoid preparers who claim they can obtain larger refunds than other preparers, or those who guarantee refunds or base their fees on a percentage of the refund.  
• Avoid preparers who completely close their offices right after April 15^th every year.
• Avoid preparers who try to persuade you to say something on your tax return that is not true in order to get a bigger refund.
• Avoid any tax preparer that asks you to sign a blank return or requires the refund be sent directly to them.
• Avoid preparers who pressure you to buy additional products or services.

Make sure your preparer fully explains every form you are asked to sign. In addition, ask your preparer about the use and disclosure of your personal tax return information.

Report suspected tax fraud and abusive tax preparers to the IRS on Form 3949-A, Information Referral, or by sending a letter to Internal Revenue Service, Fresno, CA 93888. Download Form 3949-A from www.irs.gov or order by mail at 1-800-829-3676.

For more information, visit the Tax Videos section of this site.