Picking The Right Tax Preparer/Accountant

The IRS urges taxpayers to be very careful when choosing a tax preparer. It is important to know that even if someone else prepares a tax return, it is the taxpayer who is ultimately responsible for all the information on the tax return.
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Tax Return Preparer Fraud

Generally Involves the preparation and filling of false income tax returns by preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients. Prepares may manipulate income figures to fraudulently obtain tax credits, such as the Earned Income Tax Credit.

In some situations the taxpayer may not have knowledge of the false expenses, deductions, exemptions, and/or credits shown on his or her tax return.
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Helpful Hints When Choosing a Return Preparer:

• Be cautious of tax preparers who claim they can obtain larger refunds than other preparers.

• Avoid preparers who base their fee on a % of the amount of the refund.

• Use a reputable tax professional who signs your tax return and provides you with a copy for your records.

• Consider whether the individual or firm will be around to answer questions about the preparation of your tax return months, or even years, after the return has been filed.

• Review your return before you sign it and ask questions on entries you do not understand.

• No matter who prepares your tax return, you, the taxpayer are ultimately responsible for all the information on your tax return. Therefore, never sign a blank tax form.

• Find out the person’s credentials. Only attorneys, certified public accountants (CPAs) and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection and appeals. Other return preparers may only represent taxpayers
for audits of returns they actually prepared.

• Find out if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and holds them to a code of ethics.

• Ask questions. Do you know anyone who has used the tax professional? Were they satisfied with the service they receive?