Choosing the Best Tax Preparer in the US
We all know that filing tax returns has never been easy. For this reason, we know that taxpayers around the country hire a professional tax preparer to give them a hand. For last year only, the IRS reported that over 80 million taxpayers were helped to e-file their tax returns by tax pros. The demand for professional tax filing services has lead to an increase in the number of rogue tax pros. Presently, not all tax pros have a good intention or the credential that every tax professional should have in line with IRS recommendations. It is your responsibility to select a tax pro suits your personal tax salutations. In this article, our experts aim to elucidate the crucial things to look into when selecting the best tax preparer.
Choose a Professional Who Offers Audit Support
The chances that the IRS will audit individual tax returns are rare. Nonetheless, you should be prepared just in case you land on the dreaded audit list. You will need help in defending your returns or addressing whatever tax or return concerns the IRS may bring up. That is the reason why it is vital to engage a tax professional who can offer audit support should the need arise. It is imperative to note that a taxpayer does not get off the hook if there is any case of underreporting income. This may lead to penalties and fees payable to the IRS. This makes it necessary to have a tax professional that will be there for you if a tax return is flagged.
Acknowledge IRS Recommendations
The recommendation from the IRS is that the qualification of a tax preparer should always be in the taxpayer’s mind. IRS requires tax preparers to be certified public accountants, attorneys, enrolled agents, actuaries and other trained tax agents. These tax preparers should have a preparer tax identification number or PTIN. Failure of a tax preparer to have a PTIN should be a red flag. Actually, a person without the PTIN should not prepare or file a federal tax return for clients. The IRS directory has the list tax preparers with the PTIN.
All this implies that identifying the type of tax preparer is of paramount importance. Without a doubt, a taxpayer has the freedom to choose a tax expert in private practice or a storefront tax-prep company. Regardless of the choice, it is essential to have someone with the right experience and conforms to the IRS recommendations.
Compare Fees
Before settling on a tax preparer, it is prudent to ask how much he or she charges. According to the National Society of Accountants, the average fee for preparing a tax return last year was about $290. Notably, the fee included an itemized Form 1040 with Schedule A and a state’s tax return. On the other hand, the average cost of preparing a Form 1040 and state without itemized deductions was about $185.
Arguably, legitimate tax preparers often have an hourly charge. You should be able to discern a preparer as rouge if they base their fee on the size of your tax refunds. However, it is worth noting that a taxpayer may charge an extra $150 per hour to handle any case of the IRS auditing you in person.
Check the Tax Preparer’s Credentials
Well, having a PTIN is just the basic requirement that every tax preparer should meet. Anyone with the preparer tax identification number can handle and file your taxes. However, it would be best to find someone who can handle audits, IRS collections, and appeals. The best professional that would best suit this description is a certified public accountant or an enrolled agent. If you need the services of a tax preparer, you can find it on the IRS’ Directory of Federal Tax Return Preparers. That is the best place to find tax pros with credentials and select qualifications.
Avoid Preparers Who Promise a Higher Refund
While searching for the best tax professional, it is normal to come across cunning people in the name of tax preparers. Such individuals will try to lure you in with the promise of acquiring a huge amount of money back on your return. Avoid falling into such a trap. The fact is that you cannot know the amount of tax refunds you will get unless you run the numbers and review the tax documents. You should fearlessly shun away anyone who alleges to get you huge tax refunds. This should be a clear indication that that person wants to fudge numbers or blatantly lie on your return to deliver on that claim.
It may take time to find the right tax preparer. At times, you may feel demoralized by the whole process. We can save you for all the hassle and help in getting you the right tax professional. If you need assistance, do not hesitate to get in touch with us
