(February 22, 2008) The BBB reminds consumers to choose carefully if they plan to use a tax preparer this income tax season. Start the selection process now, so you don’t wind up settling for someone you know little about. Remember, you are ultimately responsible for everything on your tax return, even if someone else prepared it.
Most tax professionals are qualified and honest people. The BBB offers these tips for finding a reputable tax preparer:
• Get referrals from satisfied clients.
• Interview the potential preparer. Ask about their training, experience and knowledge of current tax law. Are they a member of a professional organization with continuing education requirements and a code of ethics? Are they willing to guarantee the accuracy of their work and amend the return in the case of a mistake?
• How long they have been in business? You’ll want someone who will still be around to answer questions that may arise later on.
• Contact the BBB (www.bbb.org) to determine if the preparer is one you can trust.
• Get an estimate for their fee prior to authorizing the work.
Steer clear of tax preparers who sound too good to be true. Beware if they:
• Boast that they can obtain larger refunds than competitors;
• Don’t ask to review your records and receipts or discuss your qualifications for expenses and deductions;
• Base their fee on a percentage of the refund amount, rather than the complexity of the tax return; or
• Pressure you to sign up for immediate payment of your refund. This involves a loan that typically carries a high interest rate.
Be advised that a tax preparer is acting illegally if he or she encourages you to claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions; manipulates your income in order to obtain fraudulent tax credits; asks you to sign a blank or incomplete form; or guarantees that you will not be audited.
Always review your prepared return carefully before signing, and get clarification on entries that you don’t understand. Never sign a blank tax form or one completed in pencil! Finally, make sure that your preparer has signed your tax return, and provided you with a copy and a payment receipt for your records.