Make sure you chose a qualified tax preparer

Van Sievers CFP March 6, 2015

Like most Americans your current “To Do” list probably includes income taxes. Everyone has received a lot of mail with descriptions or warnings about this information being “Important 2014 Income Tax Information!” Soon you will have to decide how to deal with last year’s income tax situation. So, should you try to file you own income tax returns or are you thinking about hiring a tax professional?

Tax laws can be complicated and usually change from year to year, so it’s important for you to learn a lot of new tax laws or you need to find a preparer who has the knowledge and experience to prepare your returns correctly.

The IRS now requires tax-compensated preparers to register, pass a competency test and take continuing education classes annually. CPA’s, lawyers and enrolled agents have always met those requirements, but the field of tax professionals is raising its standards, which is probably good for everyone.

However, services vary considerably from preparer to preparer, so you’ll also want to find a professional who offers the services you need.

Before you hire a preparer, ask some questions

•What kind of formal tax training do you have?

•Do you hold any professional licenses or designations, such as certified public accountant?

•Tell me how you get your continuing professional education?

•How long have you been preparing tax returns?

•Have you ever done a tax return dealing with my situation?

•Have you ever been disciplined by any government authority (federal or state) for malpractice?

•Are you authorized to, and will you represent me in an audit or collection matter with the IRS or the Alabama Department of Revenue should the situation come up?

•How much do you charge and how do you calculate your fees?

Also, be careful of tax preparers who claim to know “the secrets” of obtaining unusually large refunds. Most preparers charge rates based on their time or the complexity of your return, and you should avoid anyone whose fees are based on a percentage of your refund.

Remember that you are ultimately responsible for your tax return, so be sure to choose your tax preparer carefully.