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Find the Right Tax Preparer

Even tax preparers use tax preparers. Use these 5 tips to find one for you.
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Welcome to tax season. Let me offer you two words of advice for starting the tax season off right: Get help.

I have two tax-related businesses. And I will tell you, I do not prepare my own taxes. I believe strongly in the adage, "The lawyer who represents herself has a fool for a client." That cliché applies to tax professionals, too. I spend all day, every day talking about taxes, reading about taxes, teaching people about taxes. But when tax season rolls around, I gather up all my tax records and head straight to my tax preparer.

I am fortunate enough to have a fantastic tax professional, and I have worked with him for years. However, I have also heard horror stories from people who were not so lucky. It isn't always easy to tell the good preparers from the less-than-qualified ones. Many states don't even regulate who can call themselves a tax preparer, leaving you struggling to find decent help. The IRS does have plans to create national licensing requirements, but those could be years off.

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So, how do know your tax professional is a good one?

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  1. Get referrals. Ask for referrals at professional networking events, through your professional associations and even from your business neighbors. Talk to other business owners in your area; find out if they have a tax preparer they like. Get a few names, then plug them into Google or an online review site such as Yelp.com. Those reviews can help you see a wide variety of experiences people have had with that professional. Just remember to take everything you see and hear with a grain of salt.
     
  2. Visit the office. Once you have a handful of referrals, drop by their offices. If a tax preparer cannot keep an office organized and running smoothly, how well do you think your taxes will be prepared? Is the environment calm and professional, or is it chaotic? Do there seem to be a lot of disgruntled clients or complaint calls? Appearances can be deceiving, but if the office is in a general state of squalor, you may not want that professional filing your taxes for you.
     
  3. Interviews. In-person interviews are absolutely crucial to finding a good tax preparer. Have a list of questions ready and pay attention to the answers, both what is said and what is not said. Ask about the tax professional's schedule and availability during tax season and beyond. Will the preparer be available if you need help in June? Especially important, ask how many business owners the preparer has as clients. Business taxes are complex, with specific deductions and credits for which you might be eligible. But a tax preparer who has not done business taxes may miss them entirely, costing you money. Ask about your prospects' ongoing education and training. Taxes change every year, so keeping current is important. Don't just take the tax professional's word for it. Ask specific questions: What classes? When did she take the courses? Ask about recent tax changes that apply to you.
     
  4. Beware promises. Any time you talk to tax professionals, be wary of any guarantees or promises they can't possibly keep. For example, how can they guarantee you a refund without ever seeing your financial documents? Are they talking about using any tax techniques that seem questionable? If it sounds too good to be true, it usually is. If your tax preparer makes any incorrect or fraudulent claims on your tax return, you are ultimately responsible for them. If the IRS audits you or finds you owing more in taxes, it's you who'll end up paying the penalties, not your tax preparer.
     
  5. Cheapest is not always best. Of course you must consider how much a tax preparer is charging; after all, we're in a recession. We all want the best deal, but this is not the place for bargain-basement prices. When it comes to tax preparers, remember that you are paying for experience and expertise. Don't automatically choose the lowest price. By the same token, just because someone is expensive does not necessarily mean she is the best, or the best for your situation. Do your homework, ask questions and choose the best preparer you can find, not necessarily the cheapest.

Finding qualified help with your taxes is simple to do, and it will save you money.


Roni Lynn Deutch is known as The Tax Lady for a reason: She has two decades of practical experience resolving IRS tax problems and preparing taxes for taxpayers nationwide. Consequently, she has become a well-known media personality and one of the few go-to tax experts in the country.
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  • allenbostrom
    As a tax professional myself of 20+ years, a lot of people are surprised to hear that I have a tax professional doing my taxes. So, I was pleased to see I have company. I've found that it's easy to see the forest and not the trees in my personal finances. Plus, it gives me a good opportunity to have a different person to bounce ideas off when it comes to my personal tax situation. When people have asked me about the new registration process for preparers I've explained that it's little different from a drivers license. It may help to ensure some level of competence, but it doesn't mean a person is a good driver. Tax preparers need to subscribe to an ethical practice - I outlined that in an article at http://bit.ly/b1aaGy. Best wishes.
  • Great advice, although I wish I had read this before I tried to do my own taxes last year for my llc. I feel lucky not to have been hounded or not have many any huge errors, but my accounting skills clearly aren't as good as I thought they were. Im having someone do all of my stuff this year, I think I'll possibly save money - but in either case, it's nice to have someone who knows what they are doing take care of your business accounting.
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