February 5, 2008

How to Select the Right Tax Preparer to Avoid IRS Issues

You want to avoid errors on your tax return and IRS problems, so select your tax preparer wisely.

Important factors to help you choose a tax preparer are:

  • Don't hire a tax preparer whose service fee is based on a part of your claim or refund.
  • Demand references. Know if the tax preparer's clients were satisfied with his work.
  • Do your research. Check with the Better Business Bureau to see if there have been charges. Know if the tax preparer is affiliated to any organizations that hold members accountable to a code of ethics.
  • Check their credentials. Only enrolled agents, CPAs, and attorneys can represent you at an appeals hearing or audit.

Present your receipts and records to the tax preparer. Questions about your deductions, expenses, and income may be asked. They're able to make changes if mistakes are found and are willing to help you at an IRS audit, as well as guarantee the accuracy of their work.

By law, the tax preparer has to sign your return and accomplish the preparer area of the form. Note that you are liable for the accuracy of everything reported on your tax return, regardless if someone else prepared it. Before signing your return, you must review it. Make sure that all information are right. Always sign in ink and never sign a blank return. Keep a copy of your return for your files.

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