Tips for choosing the right tax preparer

Zach Myers
·2 min read

(WTTV/WXIN) – As we get further into tax season, it’s important to be sure that you are using a trustworthy tax preparer.

According to the Better Business Bureau, choosing the right tax preparer really depends on how complicated your tax situation is.  Enrolled Agents (EA), Certified Public Accountants (CPA) and Tax Attorneys are all qualified to represent their clients to the IRS.

Non-credential tax preparers often work part-time or only during tax season. If you use a non-credential tax preparer, you will want to make sure they have a Prepare Tax Identification Number (PTIN).

In deciding which preparer to use, the BBB recommends these things to keep in mind:

  • Review the tax preparer’s credentials. EAs, CPAs, and tax attorneys are all qualified to represent their clients to the IRS on all matters. Other preparers can help you with forms and basic matters but cannot represent you in case of an audit. Don’t be afraid to ask about these or other qualifications before you hire someone.

  • Be wary of spectacular promises. If a tax preparer promises you larger refunds than the competition, this is a red flag. Many such tax preparers base their fees on the amount of your return and may be likely to use shady tax preparation tactics. In addition, it’s wise to avoid tax preparers who offer “refund anticipation loans” as you’ll probably lose a large percentage of your return to commission fees.

  • Get referrals from friends and family. One of the best ways to find a trustworthy tax preparer is to ask your loved ones for recommendations. Once you have a few options, check BBB.org, paying careful attention to other consumers’ reviews or complaint details. This will give you a clear view of what you can expect.

  • Think about availability. If the IRS finds errors in your tax forms or decides to perform an audit, will your tax preparer be available to help you with the details? Find out whether you can contact the tax preparer all year long or only during tax season.

  • Ask about fees ahead of time. Before you agree to any services, read the contracts carefully and understand how much the tax preparer charges for their services. Ask about extra fees for e-filing state, federal, and local returns, as well as fees for any unexpected complications.

  • If things don’t add up, find someone else. If a tax preparer can’t verify their credentials, has a record of bad reviews from previous clients, or their business practices don’t seem convincing, don’t do business with them. Remember that if you hire them, this individual will handle your sensitive personal information – information you need to keep safe from corrupt or fraudulent tax preparers.

For more advice, you can check out BBB’s Tax Tips and Resources. You can also read more about BBB Accreditation Standards and BBB Standards for Trust.

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