The United States tax system has become more and more complex over the years and with this has emerged the need of income tax preparers, people with expertise and in depth understanding of the complexities of tax. And when you are paying a good amount for someone to prepare your tax it is wise to choose with caution. You must know that as a taxpayer you are the one who will be legally accountable for all that is there is your tax return even if it is prepared by someone else.
Here are a few points that you must keep in mind while choosing income tax preparers.
· Qualification is vital- Income tax preparers need to have the valid qualification to do the income tax preparation. Find out if the concerned person has any affiliation with a professional establishment which offers its members with on-going education and holds them under a code of ethics. Also all the tax preparers need to have the proper Identification Number.
· History of Preparer- makes sure that the tax Preparer has clean history; check with the Better Business Bureau to make sure that no disciplinary action has been taken against the preparer and all the licences are in place.
· Talk out about the service fees- never hire an income tax Preparer, who charges the service fees based on the amount of your income tax return or who tell you that they can get you and bigger and better return than their competitors. Service fees should be paid according to the complexity of your tax return.
· Make sure that the Preparer is accessible- make sure that the income tax Preparer will be staying in touch with you even after the tax is filed. The tax Preparer needs to be reachable in case any questions arise on the tax returns anytime in near future. Always look for a stable established firm as your income tax preparers.
· You need to review the entire tax return document before signing, understand the document, ask questions if needed. Never sign a blank or incomplete tax from.
· Always keep a copy of your tax return that is being filed.
· Make sure that the paid income tax Preparer signs all the documents and also provides the PTIN number in the documents as required by the law.
· Furthermore find out that if ever you are questioned by the IRS will the tax Preparer represent you before the IRS.
At all times remember that good income tax preparers can help you to save hundreds of dollars on your taxes. But if you choose a wrong income tax preparer it can be a waste of money and can cost you a lot more. If you have a simple income with no complications, you do not need to hire a Certified Public Accountant (CPA) and pay him a huge amount. But if you are a business owner and the income tax return is complex with grey areas, you need a tax prepare with extensive experience and expertise.
How to Choose an Income tax Preparer