Many Americans have already started preparing their taxes even though the deadline to file isn't until April 15th. While doing your own taxes might save you some money, the penalties and interest charged by the IRS for even a simple mistake can wipe out years of savings. Working with a tax preparer can free you from the stress of doing your taxes and help make sure they're done correctly.
Here are a few tips to follow when looking for a tax preparer.
Tip 1: Check the tax preparer’s qualifications.
An easy way to start your search for a qualified tax preparer would be to look for an Enrolled Agent (EA), Certified Public Accountant (CPA), or tax attorney. Anyone that carries one or more of these credentials will have gone through a lot of education, testing, and is required to do continuing education.
Just because someone isn't an EA, CPA, or attorney doesn't mean that he or she isn't qualified to do your taxes. It just means that you'll need to do more due diligence. One way to do this is ask if he or she is affiliated with any professional association that requires testing and/or continuing education.
Tip 2: Check the preparer’s history.
You can check up on an EA's background through the IRS Office of Enrollment. In Texas you can research a CPA’s history through the Texas State Board of Public Accountancy and a tax attorney’s history through the State Bar of Texas. You can also contact your local Better Business Bureau to see if there are any complaints against a tax preparer you’re considering.
Tip 3: Ask about fees.
Be sure to select a tax preparer that charges a flat fee, by the hour, or similar method. Avoid preparers that charge a percentage of the refund or make wild claims about how large of a refund they can get you. You want to make sure that the preparer you select doesn't have an incentive to bend the law to get you a larger refund.
Tip 4: Ask about availability after April 15th.
Many tax preparers are only available during tax season. This is especially true of preparers that work for many of the large franchises. If you want someone that will be available after April 15th – and this is important if you’re a business owner or have complicated tax situation – then make sure the person you’re working with will be available throughout the year.
Tip 5: Review the return before signing it.
You’re still responsible for the accuracy of the information on your tax return even if you pay someone to prepare it for you, so make sure you understand everything on the form before signing it. Ask questions about anything you're unsure of and never sign a blank return or tax form.
To learn more about our company - and find out how we are different from other financial advisors - call (210) 587-6433 or visit www.VannoyAdvisoryGroup.com.
