Tips for Choosing a Tax Return Preparer
Tax return preparers usually provide honest, high-quality service, but some may engage in fraud, identity theft, and other scams.
If you’re planning to hire a tax preparer this year, it’s important to understand who you’re choosing and what important questions to ask when hiring an individual or firm to prepare your tax return. You, the taxpayer, are legally responsible for all the information on your income tax return, regardless of who prepares it.
- Hire a preparer who will sign your return. Not signing a return could be a red flag of questionable behavior, including promises of a big refund and charging fees based on the size of the taxpayer’s refund.
- Avoid using tax preparers who:
- Require payment in cash only and do not provide a receipt.
- Invent income to qualify their clients for tax credits.
- Claim fake deductions to boost the size of the refund.
- Direct refunds to a bank account that is not yours.
- Ensure the preparer has a valid Preparer Tax Identification Number (PTIN) and includes their PTIN on any tax return they prepare.
- Look for a preparer who’s available year-round in case you need to contact the preparer after the filing season is over.
- Research the preparer’s history by checking the Better Business Bureau website for information about them, such as disciplinary actions and the license status for credentialed preparers. For CPAs, check the State Board of Accountancy’s website, and for attorneys check with the State Bar Association.
- Ask about service fees and avoid tax return preparers who base their fees on a percentage of the refund or offer to deposit any amount of the refund into their own financial accounts. Be wary of tax return preparers who claim they can get larger refunds than their competitors.
- Provide records and receipts to your tax preparer so they can determine your total income, deductions, tax credits, and other items. Avoid hiring a preparer who e-files a tax return using a pay stub instead of a Form W-2.
- Refuse to sign a blank or incomplete return; it is the taxpayer’s responsibility to submit a complete and accurate tax return.
- Review the tax return before signing it and ask questions if something is not clear or appears inaccurate. Remember, any refund should go directly to you and not into the preparer’s bank account. Review the routing and bank account number on the completed return and make sure it’s accurate.