During tax season, one crucial decision you must make is choosing the right tax preparer. The IRS urges taxpayers to carefully select a tax professional to protect their personal information and avoid potential financial harm. While most tax preparers are trustworthy, some may engage in fraudulent activities, including tax-related identity theft and scams. Therefore, it’s essential to know how to choose a qualified tax preparer to ensure your tax return is accurate and secure.
Why It’s Important to Choose the Right Tax Preparer
When hiring a tax preparer, you are trusting them with your sensitive financial data. The wrong choice could lead to fraud or errors in your tax filing. It’s crucial to remember that even if you hire a professional, you, the taxpayer, are legally responsible for the accuracy of your tax return.
The IRS provides useful resources to help you make informed decisions when choosing a tax preparer. One of these resources is the Directory of Federal Tax Return Preparers with Credentials and Select Qualifications, where you can find qualified professionals. Additionally, the IRS offers guidelines on its website for choosing a tax professional. These resources help taxpayers select reputable preparers, avoid unethical ones, and understand the different types of professionals available.
Red Flags to Watch Out For When Choosing a Tax Preparer
Unfortunately, some tax preparers engage in unethical practices, such as fraud or identity theft. Here are key .signs to help you avoid these fraudulent tax preparers:
- Ghost Preparers: Be cautious of tax preparers who refuse to sign your return. These “ghost” preparers often ask you to sign and file your return yourself. The IRS mandates that all paid preparers sign tax returns and include their Preparer Tax Identification Number (PTIN). If they don’t, it’s a significant red flag.
- Excessive Fees: Be wary of tax preparers who charge fees based on your refund amount or promise unusually large refunds. If a preparer asks to deposit part of your refund into their account, this is a major warning sign.
Tips to Choose the Best Tax Professional
Here are some simple tips to help you find a trustworthy tax professional:
- Look for Year-Round Availability: A good tax preparer should be available throughout the year, not just during tax season. Sometimes questions about your tax return arise after filing, and it’s helpful to have a professional who can assist you.
- Review Their History: Check the tax preparer’s reputation with the Better Business Bureau or their licensing status through the State Board of Accountancy for CPAs or the State Bar Association for attorneys.
- Understand Their Credentials: Make sure the tax professional has a valid PTIN and verify if they have the credentials needed to handle your tax situation. For instance, CPAs, enrolled agents, and attorneys can represent clients in all matters before the IRS.
- Get Everything in Writing: Be clear about service fees upfront. Avoid preparers who base their fees on your refund or who promise to get you a larger refund than others.
- Check for Authorized E-File Providers: If you’re filing electronically, make sure your preparer is an authorized IRS e-file provider. E-filing typically results in quicker refunds.
- Avoid Signing Blank Returns: Never sign a blank or incomplete tax return. Always review the return carefully to ensure everything is correct before signing.
- Ask for Proper Documentation: A trustworthy tax preparer will ask for all relevant documents, including your Form W-2. Avoid preparers who use pay stubs or other incomplete information to file your return.
Free Tax Preparation Resources
The IRS also offers free tax preparation services through Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. If your income is $67,000 or less, you may qualify for VITA services, which are available at various locations across the country. TCE services are available to individuals aged 60 and older. Use the IRS VITA Locator Tool or call 800-906-9887 to find the closest service near you.
How to Report Tax Preparer Misconduct
If you suspect that your tax preparer has engaged in misconduct or fraud, you can report them to the IRS. Use Form 14157 (Complaint: Tax Return Preparer) if you believe your preparer has made errors or filed your return without your consent. For more serious concerns, such as fraud, you can file Form 14157-A (Tax Return Preparer Fraud or Misconduct Affidavit).
Contact ABSE Tax for Professional Tax Services
Choosing the right tax preparer is essential for protecting your personal information and avoiding unnecessary risks during tax season. At ABSE Tax, we provide expert tax preparation services tailored to your needs. Our experienced team ensures your taxes are filed accurately and securely, giving you peace of mind.
For professional assistance, contact us at 562-403-1177 or email info@absetax.com. Visit our office at 18000 Pioneer Blvd, Artesia, CA 90701. Let ABSE Tax help you navigate the complexities of tax season with confidence and security.
For more helpful tips and tools for choosing a trusted tax preparer, visit the IRS official site.
