With the continuous tax laws changes, more and more taxpayers who have always prepared their own returns are looking for outside help to ensure that they receive all the benefits they are entitled to under the new laws. Most tax preparers are professional and honest. Their goal is to provide the best possible service to their clients. Choosing someone to prepare and file your taxes for you should be a decision you make after careful consideration of several factors.
First, there are several types of preparers you should never consider. Among these are companies or preparers who claim they can get you a higher refund than others. Returns that are prepared honestly will all result in you receiving the same refund. There are no secret formulas for being entitled to a bigger refund.
Second, you should avoid any preparer who bases the fee charged on a percentage of the refund. This can lead to "padding" of your expenses and "shaving" of your income. While these can increase the refund you receive, they also raise the fee you pay the preparer and result in a tax return that is questionable at best, dishonest at worst. Remember, it is you, not the preparer, who is legally responsible for the information contained in your tax return.
So, how do you choose the correct tax professional for your needs? Here are some things you should keep in mind when making this important decision:
Reputation
Ask your friends and associates who they use as their preparer. Were they satisfied with the service they received? Were they comfortable entrusting their personal information with this person or company? Do they plan to continue using this preparer?
Credentials
Tax preparers can have different titles, based on their education and experience. They can be called a Certified Public Accountant (C.P.A.), an Accredited Tax Preparer, an Enrolled Agent, a Licensed Public Accountant or a Tax Attorney. Only C.P.A.s, Enrolled Agents, and attorneys can represent taxpayers before the IRS in all matters. This representation includes audits, collection actions and appeals. Other types of preparers can represent you during an audit only.
You should inquire about the preparer's affiliation with professional tax organizations. These organizations provide tax preparers with ongoing education and resources, and hold them to a code of ethics.
Stability
Unfortunately, the IRS does not respond instantly when there are problems with your return. Sometimes it is months, even years, before they question an entry in your return. When choosing a preparer, you need to consider whether they (or their company) will be around should you need them in the future. The tax professional you choose should always sign the return and provide you with a copy for your records. They should make you aware of how to reach them should you have questions when the busy "tax season" is over.
Choosing a tax professional is an important decision and should be made carefully. Please keep these cautions and suggestions in mind when choosing someone to prepare your return(s). As always, we at the Tax & Accounting Division of The Henssler Financial Group are available to answer any questions you may have. Feel free to contact us at 770-428-4025.
