Tips for choosing a tax preparer

  • By Pamela Yip The Dallas Morning News
  • Saturday, February 9, 2013 7:29pm
  • Business

Choosing a tax preparer is something you should do with care.

After all, this person will prepare a document containing the most personal details of your financial life. What’s more, you will personally need to certify to the government that the document is accurate to the best of your knowledge.

You want a person who knows what he or she is doing.

You should always do an extra amount of research when selecting a tax preparer. Even though you’ve hired someone to prepare your income tax return, you are ultimately responsible and liable for the accuracy of the information.

Most preparers are professional and honest, but, like in any industry, there are bad apples. Time and time again, I get news releases that detail how the feds nailed a tax preparer for falsely claiming tax breaks and refunds for a client.

Here are tips on how to pick a tax preparer and protect yourself:

•Check the preparer’s experience: You want somebody who’s experienced, trained and is up to date on tax law changes and who can suggest tax-saving ideas for the current or future years.

“Taxpayers may want to ask if preparers are affiliated with a professional organization and attend continuing education classes,” the IRS said. “If your preparer is an enrolled agent, a certified public accountant or an attorney, they have passed a high-level test to earn their title. These are the only three types of tax professionals who can represent you before all offices of the IRS.”

•Does the preparer stand behind his or her work? Do they guarantee the accuracy of the tax return, and if you’re audited, will that person be around to assist you?

Check the preparer’s history: Check if the preparer has a questionable history with the Better Business Bureau. Also, check for any disciplinary actions and licensure status through the state board of accountancy for certified public accountants; the state bar association for attorneys; and the IRS Office of Enrollment for enrolled agents.

Ask early about the preparer’s service fees: Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers

Protect your refund: Make sure any refund due is sent directly to you or deposited into an account in your name and not a preparer’s bank account.

Provide all documents needed to prepare your return: Reputable preparers will request to see your records and receipts and will ask you questions to determine your total income and your qualifications for expenses, deductions and other items.

“Do not use a preparer who is willing to electronically file your return using your last pay stub before you receive your Form W-2,” the IRS said. “This is against IRS e-file rules.”

If you’re claiming the Earned Income Tax Credit, preparers must file IRS Form 8867.

•Never sign a blank return, and avoid tax preparers who ask you to do so.

Review the entire return before signing it: Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Black Press Media operates Sound Publishing, the largest community news organization in Washington State with dailies and community news outlets in Alaska.
Black Press Media concludes transition of ownership

Black Press Media, which operates Sound Publishing, completed its sale Monday (March 25), following the formerly announced corporate restructuring.

Maygen Hetherington, executive director of the Historic Downtown Snohomish Association, laughs during an interview in her office on Thursday, Feb. 15, 2024, in Snohomish, Washington. (Ryan Berry / The Herald)
Maygen Hetherington: tireless advocate for the city of Snohomish

Historic Downtown Snohomish Association receives the Opportunity Lives Here award from Economic Alliance.

FILE - Washington Secretary of State Steve Hobbs poses in front of photos of the 15 people who previously held the office on Nov. 22, 2021, after he was sworn in at the Capitol in Olympia, Wash. Hobbs faces several challengers as he runs for election to the office he was appointed to last fall. (AP Photo/Ted S. Warren, File)
Secretary of State Steve Hobbs: ‘I wanted to serve my country’

Hobbs, a former Lake Stevens senator, is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mark Duffy poses for a photo in his office at the Mountain Pacific Bank headquarters on Wednesday, Feb. 14, 2024 in Everett, Washington. (Annie Barker / The Herald)
Mark Duffy: Building a hometown bank; giving kids an opportunity

Mountain Pacific Bank’s founder is the recipient of the Fluke Award from Economic Alliance Snohomish County.

Barb Tolbert poses for a photo at Silver Scoop Ice Cream on Thursday, Feb. 29, 2024 in Arlington, Washington. (Annie Barker / The Herald)
Barb Tolbert: Former mayor piloted Arlington out of economic brink

Tolbert won the Elson S. Floyd Award, honoring a leader who has “created lasting opportunities” for the underserved.

Photo provided by 
Economic Alliance
Economic Alliance presented one of the Washington Rising Stem Awards to Katie Larios, a senior at Mountlake Terrace High School.
Mountlake Terrace High School senior wins state STEM award

Katie Larios was honored at an Economic Alliance gathering: “A champion for other young women of color in STEM.”

The Westwood Rainier is one of the seven ships in the Westwood line. The ships serve ports in the Pacific Northwest and Northeast Asia. (Photo provided by Swire Shipping)
Westwood Shipping Lines, an Everett mainstay, has new name

The four green-hulled Westwood vessels will keep their names, but the ships will display the Swire Shipping flag.

A Keyport ship docked at Lake Union in Seattle in June 2018. The ship spends most of the year in Alaska harvesting Golden King crab in the Bering Sea. During the summer it ties up for maintenance and repairs at Lake Union. (Keyport LLC)
In crabbers’ turbulent moment, Edmonds seafood processor ‘saved our season’

When a processing plant in Alaska closed, Edmonds-based business Keyport stepped up to solve a “no-win situation.”

Angela Harris, Executive Director of the Port of Edmonds, stands at the port’s marina on Wednesday, Jan. 24, 2024, in Edmonds, Washington. (Ryan Berry / The Herald)
Leadership, love for the Port of Edmonds got exec the job

Shoring up an aging seawall is the first order of business for Angela Harris, the first woman to lead the Edmonds port.

The Cascade Warbirds fly over Naval Station Everett. (Sue Misao / The Herald file)
Bothell High School senior awarded $2,500 to keep on flying

Cascade Warbirds scholarship helps students 16-21 continue flight training and earn a private pilot’s certificate.

Rachel Gardner, the owner of Musicology Co., a new music boutique record store on Thursday, Jan. 18, 2024 in Edmonds, Washington. Musicology Co. will open in February, selling used and new vinyl, CDs and other music-related merchandise. (Olivia Vanni / The Herald)
New Edmonds record shop intends to be a ‘destination for every musician’

Rachel Gardner opened Musicology Co. this month, filling a record store gap in Edmonds.

MyMyToyStore.com owner Tom Harrison at his brick and mortar storefront on Tuesday, Sept. 6, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Burst pipe permanently closes downtown Everett toy store

After a pipe flooded the store, MyMyToystore in downtown Everett closed. Owner Tom Harrison is already on to his next venture.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.