Tax season is here and many Americans will enlist the help of tax preparers. BBB advises that consumers looking for trustworthy tax preparation services take their time to shop around for one that is qualified and has a strong record of customer service.
Use the same caution selecting your tax preparer as you would in selecting any other professional service. To rush through the process can lead to headaches with tax preparation mistakes. Ultimately, even when using a tax preparation service, the taxpayer is responsible for all information submitted to the IRS and would pay any additional taxes as well as any other associated interest, fees and penalties.
BBB advises:
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Ask Around. Get referrals from friends and family. Check the BBB Business Reviews.
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Look for credentials. Ideally, tax preparers should either be a certified public accountant, a tax attorney, or an enrolled agent. Only they can represent taxpayers before the IRS in all matters such as audits, collections and appeals. Also find out if the preparer is affiliated with a professional organization that holds its members to a code of ethics. A reputable tax professional will sign the tax return and provide you a copy.
- Don’t fall for the promises of a big refund. Be wary of any tax preparation service that promises larger refunds than the competition, and avoid any tax preparers who base their fee on a percentage of the amount of the refund.
- Think about accessibility – Many tax preparation services only set up shop for the months leading up to April 15. In case the IRS finds errors, or in the case of an audit, consumers need to be able to contact their tax preparer throughout the year.M
- Read the contract and know what you are paying for. Consumers must read tax preparation service contracts closely to ensure they understand issues such as, how much it is going to cost for the service, how the cost will be affected if preparation is more complicated and time consuming than expected, and whether the tax preparer will represent the consumer in case of an audit.
- When using tax preparation software, use the same caution to understand the program and that ultimately you are responsible for the information you provide to the IRS.
- For those wanting to receive a fast refund, the most secure way is to file online with the IRS (www.IRS.gov).
- Use caution regarding offers that promise advances on your tax refund as they may come with a high price.
- Report suspected fraud to the IRS immediately by completing a Form 3949-A, Information Referral. Whistleblowers may also provide allegations of fraud to the IRS using Form 211, Application for Award of Original Information, and may be eligible for a reward.
Some taxpayers may be eligible to have their taxes prepared for free through the New York State Department of Taxation and Finance. Visit for www.tax.ny.gov/ more details.
Check out any preparer with BBB by visiting www.newyork.bbb.org and look for more tips on choosing a tax preparer.