How to Choose a Tax Preparer

Tax season is nearly here. If you don’t have a tax preparer, now’s the time to find one.

But there are so many options. How do you choose?

First, check out tax preparers’ qualifications: What training did they receive? Do they stay up-to-date by taking continuing education classes? Do they have a professional license?

According to the IRS, three types of tax professionals — enrolled agents, certified public accountants, and tax attorneys — “have met substantial proficiency requirements.” These tax preparers are also qualified to represent their clients before the IRS on any tax-related matters, including audits, payment/collection issues, and appeals. Ideally, none of those issues will apply to you, but if they do, you’ll probably be grateful to have a competent professional who can communicate with the IRS on your behalf.

Other types of tax preparers who participate in the IRS Annual Filing Season Program have what’s known as “limited representation rights.” This means they can represent clients before the IRS only on certain matters. In general, tax return preparers not listed in the searchable IRS online directory can prepare tax returns but wouldn’t be able to represent you with the IRS if there were problems after your return was filed.

You should also check a tax preparer’s history for problems like disciplinary actions. The Better Business Bureau can help with this.
In addition, if someone promises you a much larger tax return than you were expecting before they even look at your records, it’s probably a sign that something’s fishy. The IRS also recommends avoiding tax preparers who base their fees on a percentage of your refund or who ask to you to deposit your refund into their own account.

Make sure the preparer offers electronic filing. According to the IRS, “any paid preparer who prepares and files more than 10 returns for clients generally must file the returns electronically.”

Finally, bankrate.com recommends asking any potential tax preparer for references. Ensure that the office will be open after your return has been filed in the event that you — or the IRS — have questions.

In case you need more motivation to find a competent, trustworthy professional, keep in mind that you, not your tax preparer, are legally responsible for all the information on your tax return.

If you’re still not sure where to start, ask friends, relatives, or co-workers for recommendations. Once you have a list of a few options, let the research begin!

IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications:
www.irs.treasury.gov/rpo/rpo.jsf

Make a Complaint About a Tax Return Preparer:
www.irs.gov/tax-professionals/make-a-complaint-about-a-tax-return-preparer

Better Business Bureau:
www.bbb.org/lakecharles