More Tax Tips: Helpful Hints When Choosing a Return Preparer

You are determined to file your 2006 tax return on time. You are gathering your pertinent documents, sorting and filing, and getting your books in order. You are doing one part to make sure the filing process is a smooth one. The next part is to assess your return preparer’s qualifications. If you are in the market for a new return preparer, the useful hints below from the IRS website will guide you in selecting a qualified professional.

• Avoid tax preparers who claim they can obtain larger refunds than other preparers
• Avoid preparers who base their fee on a percentage of the amount of the refund.
• Use a reputable tax professional who signs your tax return and provides you with a copy for your records.
• Conisder whether the individual or firm will be around to answer questions about the prepartation of your tax return months, or even years, after the return has been filed.
• Review your return before you sign it and ask questions on entries you don’t understand.
• No matter who prepares your tax return, you (the taxpayer) are ultimately responsible for all of the information on your tax return. Therefore, never sign a blank tax form.
• Find out the person’s credentials. Only attorneys, CPAs and enrolled agents can represent tax payers before the IRS in all matters including audits, collection and appeals. Other return preparers may only represent taxpayers for audits of returns they acutally prepared. (Additional text in italics added Feb. 4, 2005.)
• Find out if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and hold them to a code of ethics.
• Ask questions. Do you know anyone who has used the tax professional? Were they satisfied with the service they received?

Source: IRS

http://www.irs.gov/newsroom/article/0,,id=134094,00.html

As sole proprietors and small business owners, it is important to keep accurate records and file tax returns in a timely manner. This reflects on your reputation and capabilities as an independent professional or small business.