When it comes to choosing a tax preparer, you have several options at your disposal. You can find anything from large tax prep chains to individual tax preparers - but how do you choose which is right for you?
Whoever you choose will have access to almost all of your personal details, such as your bank account, social security number, income, family, and more. You want someone who will handle this information with security and care.
Read on to find helpful tips for narrowing down your options.
What to Look For in a Tax Preparer
Check their Preparer Tax Identification Number (PTIN)
The IRS requires all paid tax return preparers to have a PTIN. This is one of the most important qualifications for a tax preparer since the IRS will require them to put their PTIN number on your tax return when you file.
Check Their Professional Credentials
Even if a tax preparer has a PTIN, it is a good idea to check for other professional credentials.
The IRS has a directory of tax preparers with PTINs and IRS-recognized professional credentials. This can be a good place to start when looking for qualified tax preparers.
You should look for other credentials beyond the basic PTIN, such as a certified public account (CPA) or licensed attorney/enrolled agent (EA). These credentials require some ongoing study and are typically held to a higher standard of educational knowledge and expertise.
Compare Tax Preparation Fees
The price to use tax preparation services can vary. However, EAs typically charge less than CPAs.
Most tax preparers will charge you a minimum fee plus additional costs for more complex returns or a set fee for the forms and schedule needed for your return.
You should avoid tax preparers who charge fees based on the size of your refund - this is a red flag.
E-Filing Options
Any paid tax preparer who prepares and files more than 10 returns is required by the IRs to file the returns electronically. You can still opt for a paper return if you prefer, though.
If a tax preparer doesn’t offer e-filing options, that can signal to you that they may not be doing as much business as you thought.
Your Preparer Signs Your Return and Includes Their PTIN
Paid tax preparers are required by law to sign your return and include their PTIN on the return. They should also provide you with a copy of the prepared return.
However, this does not mean you are not responsible if there is a mistake in your tax return. That’s why it’s important to never sign a blank or incomplete tax return.
At the end of the day, you are responsible for the accuracy of the items on your tax return, even if it’s prepared by someone else.
Their Experience Should Match Your Needs
Tax preparers can have expertise in different areas since there are several areas of tax law. It’s important to find one that specializes in the type of tax help you need.
If you’re filing for a job that has a steady income, you will need different tax help than someone who owns a small business or manages real estate.
Watch Out for Fraudulent Tax Preparation Practices
Your tax preparer should never ask you to sign a blank or incomplete tax return. They should be able to review the file with you and walk you through what happens if there is an error on your tax return.
You should also be wary of anyone who claims to be able to get you a larger refund amount than other tax preparers or charges their service fees based on your refund amount.
These are all predatory tactics that you can be held responsible for. If you suspect a tax preparer is fraudulent, submit a report to the IRS.
Get Ready To File Your Taxes
Now that you know the tips and tricks to find the right tax preparer, the only thing left to do is to pick one.
At AMG Finance, we are committed to providing transparent, friendly tax preparation services all year round. No matter the tax situation you have, our experienced team of tax professionals makes the process simple and straightforward.
Visit a local branch to get help with your taxes today.