Did you know that roughly 60% of taxpayers pay someone to prepare their tax returns? That’s roughly 84 million people!
Here are some tips I believe people should consider when paying someone to prepare their taxes.
1. Make Sure the Preparer is Eligible to File Your Returns
In today’s day and age, this is something we shouldn’t have to worry about, but unfortunately we do.
In fact the California Franchise Tax Board estimates that there may be between 4,000 – 5,000 unregistered tax preparers illegally preparing tax returns for a fee in the state of California.
To help combat this problem, beginning January 1, 2011, new IRS regulations require all paid tax return preparers – including attorneys and CPAs – to have a PTIN, or Preparer Tax Identification Number, in order to prepare federal income tax returns.
So my advice is to make sure your tax preparer is compliant with state/federal regulations. To verify my credentials with California, click here and type “Schurter” next to “Last Name.”
2. Google ‘Em
Google the person’s name who is going to prepare your taxes. Check out their website and learn about them and their qualifications.
Consider content over style. Having a good/bad looking site doesn’t necessarily mean they’re good/bad at preparing taxes, but it may help give you a feel for what to expect.
Something to also consider is whether or not they make an attempt to educate their clients.
I try to do this on my site www.BryanSchurter.com. Feel free to let me know what you think.
3. Check out Their Fees
The national average for a basic federal tax return costs between $200 and $500 to prepare.
Obviously, this amount varies depending on the difficulty of the tax return. Never assume cheaper is better, or conversely, that paying more means you’re getting a better return.
Don’t be afraid to call and ask the person about fees. With some basic information about your specific situation, the person should be able to give you a good estimate.
Caution: It is illegal for a preparer to base your fee on an anticipated refund!!
4. Are They Available Throughout the Year?
If their office is only open January – April, you may want to re-evaluate your choice. Issues always come up throughout the year, and you want to be sure you can reach the specific person who prepared your return.
5. Look for Referrals and Trust Your Gut
After asking your family/friends who they use and trust, go with your gut.
Everyone is different, and everyone has a unique situation that applies specifically to them. If you’re getting bad vibes from someone, go with your gut, and make the best decision for you.
6. Response Rate!
Keep in mind, a good and caring tax professional will return your phone calls and answer your questions.
We all get busy, but just because it’s tax season, doesn’t give the tax professional the right to not return your calls or answer your emails in a timely manner.
Don’t ever accept bad service! You have a choice!
If you feel you could use some assistance with preparing your 2010 Tax Return, feel free to comment below, email me, or call me anytime.
*Please keep in mind that all the information I post on this site is for general purposes only. I understand that every person’s situation is unique and should be treated as such. If you would like more information about how something listed in any of my posts specifically affects you, please feel free to comment below, email me, or call me anytime.