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Choosing A Tax Professional |
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You are responsible for the accuracy of your tax return, whether you prepared it yourself or get it done by a tax professional. It is a crime to file a false tax return and it could result in prison time and or hefty fines and penalties.
Why Tax Professional?
First decide whether you need help from a tax professional or not. If your tax return is simple, you may not need a tax professional and you could prepare your taxes using good tax software. Whether the tax return is simple one or complex one depends on your expertise in tax laws and how comfortable you are with tax preparation. If you get nervous or get confused with different tax rules or not familiar with a tax software, it is better to get help from a tax professional.
You may decide to approach a tax professional to avoid doing your own taxes as you don't want to spend hours in tax preparation and you want to leave it to an expert.
You need to be careful while selecting a tax professional. They should have good understanding of the tax laws, a good "reputation", is accessible to answer any questions on your tax return.
A Retail Tax Service or an Accountant?
If your tax return is moderately complex and you need some extra help in preparing your tax return, you can choose one of the tax service chain like H&R Block, Liberty Tax Service, Jackson Hewitt Tax Service, etc. You can even contact a tax preparer who is knowledgeable in taxes and is trust worthy. Often you may be able to find one in your neighborhood by asking your friends and family for referrals.
Hire a qualified tax professional, if your return is complex and your tax situation need long term relationship with an accountant. You could hire a certified public accountant (CPA) or an enrolled agent. A CPA is licensed by a state government to practice in that state and they pass an exam and keep up with ongoing education. An enrolled agent is licensed by the federal government and they can represent taxpayers in the event of an IRS audit.
Whom to avoid
It is always better to avoid tax preparation service (often free) offered by car dealers, money lenders, etc. They are offering free service anticipating your business. They are more than likely to file a wrong tax return to maximize your tax return so that they could maximize their sales. Avoid a Tax Professional who charge their fees based on tax refund.
Review your completed return
You need to review the completed return before you sign it and never sign a blank return. Tax Professionals are humans and they can make mistakes, but their mistakes could cost you money.
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Last Updated ( Thursday, 24 January 2008 )
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