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Health & Fitness

Top Ten Tips to Help You Choose a Tax Preparer

When your employer hands you your W-2 form, it can be tempting to rush out and get your taxes done so you can get your refund. The Better Business Bureau Serving Wisconsin (BBB) advises you to check your tax preparer’s BBB Business Review first. Even if you don’t prepare your own return, you’re still legally responsible for what is on it.

“BBB Business Reviews are a great way to check out any business, including accountants, tax preparers, and other tax professionals,” said Ran Hoth, CEO/President.  “The BBB rates companies A+ to F based on 16 factors, including how long a company has been in business and how it responds to complaints.” 

Some tax preparation companies are open for only a few months every year, and it can be hard to track the preparer down if you run into problems with your return. Each year, consumers file complaints with the BBB about delays in getting refunds. Some tax preparation offices shut down abruptly, prompting complaints.

The IRS recently issued warnings about online schemes that can steal taxpayers’ identities. Scam emails may say that there’s an issue with a refund, that the taxpayer is being audited or that there’s a delay in processing the tax return. Links in the emails usually go to a scammer’s website, which asks victims to enter Social Security numbers, bank account or credit card information. The site may automatically install viruses or other malicious software on victims’ computers.

The IRS doesn’t initiate contact with taxpayers by email, and it won’t request personal or financial information or inform you of an audit that way. The IRS says taxpayers should suspect identity fraud if they receive a letter from the IRS saying that more than one tax return was filed for them or if the letter states that you received wages from an employer you don’t know. Someone may have obtained your Social Security number and used it to file a return in an attempt to get your tax refund before you do.

Here are ten tips to keep in mind when choosing a tax preparer:

1. Check the preparer’s qualifications. All paid tax preparers are required to have a Preparer Tax Identification Number (PTIN). In addition to making sure they have a PTIN, ask the preparer if they belong to a professional organization and attend continuing education classes. 

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2. Check the preparer’s history. Get referrals from friends and family, but check with the BBB to see the preparers report. Or, choose a BBB Accredited Business. Check for disciplinary actions and license statuses with the IRS.

3. Ask about service fees.  Avoid preparers who base their fee on a percentage of your refund or those who say they can get larger refunds than others can. Always make sure any refund due is sent to you or deposited into your bank account. Taxpayers should not deposit their refund into a preparer’s bank account.

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4. Ask to e-file your return. Make sure your preparer offers IRS e-file. Any paid preparer who prepares and files more than 10 returns for clients generally must file the returns electronically. IRS has safely processed more than 1.2 billion e-filed tax returns.

5. Make sure the preparer is available. Make sure you’ll be able to contact the tax preparer after you file your return - even after the April 15 due date. This may be helpful in the event questions come up about your tax return.

6. Provide records and receipts. Good preparers will ask to see your records and receipts. They’ll ask questions to determine your total income, deductions, tax credits and other items. Do not use a preparer who is willing to e-file your return using your last pay stub instead of your Form W-2. This is against IRS e-file rules.

7. Never sign a blank return. Don’t use a tax preparer that asks you to sign a blank tax form.

8. Review your return before signing.  Before you sign your tax return, review it and ask questions if something is not clear. Make sure you’re comfortable with the accuracy of the return before you sign it.

9. Ensure the preparer signs and includes their PTIN.  Paid preparers must sign returns and include their PTIN as required by law. The preparer must also give you a copy of the return.

10. Report abusive tax preparers to the IRS.  You can report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If you suspect a return preparer filed or changed the return without your consent, you should also file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit. You can get these forms at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Additional IRS Resources:                                                        

 

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