Tax time tips
Published 8:01 pm Saturday, February 7, 2015
- MECHELE AGBAYANI MILLS, Tyler Better Business Bureau
The IRS began accepting tax returns on Jan. 20, and many taxpayers are anxious to get their tax refunds as soon as possible.
BBB reminds consumers that according to the IRS, taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else, so it’s important to be selective when hiring an individual or firm to prepare your return.
Preparing your tax return is not only complex and confusing; it can also be loaded with pitfalls if you hire someone who isn’t qualified to prepare it for you.
BBB provides the following tips on tax preparation and hiring a trustworthy tax preparer:
nAsk around. Get referrals from friends and family on who they use and check BBB reports on local tax preparers and tax preparation services. Make sure to search for a tax preparer who is an expert in the type of service that is needed.
n Don’t fall for the promise of big refunds.
Be wary of any tax preparation service that promises larger refunds than the competition, and never hire a tax professional who bases their fee on a percentage of what you get back in the form of a refund.
Request an estimate and discuss the price before making an agreement. The cost of the service should be determined by the complexity of the return.
n Make sure they have a preparer tax identification number (PTIN). Federal law requires all tax preparers to have one. If the person you want to hire can’t provide you with theirs, walk away.
n Investigate. Examine whether the preparer has any questionable history with your state’s Board of Accountancy (for certified public accountants), the State Bar Association (for attorneys), the IRS Office of Professional Responsibility (OPR) for enrolled agents or with BBB.
Remember that a paid preparer is required by law to sign your return and fill in the preparer areas of the form.
They should also include their appropriate identifying number on the return. In addition, the preparer must give you a copy of your return.
n Consider accessibility. Pop-up tax preparation services abound this time of year. In case the IRS finds errors, or in case of an audit, you might need to be able to contact your tax preparer throughout the year; be sure to find out how you would do so.
n Read the contract carefully. Read tax preparation service contracts closely to ensure you 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 you in case of an audit.
BBB also warns consumers to be on the lookout for tax scams using the IRS name and reminds consumers that the IRS does not initiate contact with taxpayers by email. If you think you owe taxes, call the IRS directly at 800-829-1040.
For more tips on how to be a savvy consumer, go to www.bbb.org. To report fraudulent activity or unscrupulous business practices, call the BBB Hotline: 903-581-8373.