Having a good tax preparer matters

On Behalf of | Jun 7, 2019 | Income Tax

While there are a good number of people in the United States who complete and file their taxes on their own every year, there are many more who trust so-called professionals to help them. Having a good tax preparer matters if one chooses to go this route. Here are few tips that may help Connecticut residents determine if their tax preparers or potential tax preparers are right for the job.

Tip number one: Avoid big promises and hidden fees. There are a number of tax preparers out there who like to make big promises but at the same time try to hide information about their fees. They claim that they can get their clients big refunds and may even offer prizes for using their services. At the end of the day, a good and trustworthy tax professional will not make big promises and will be upfront about what it is going to cost to use their services.

Tip number two: Make sure they are in compliance with IRS standards. Come tax season, tax preparation companies seem to pop up everywhere. Those that are legitimate firms should have Preparer Tax Identification Numbers. This means that they are registered with the Internal Revenue Service. A tax preparer who lacks a PTIN is not working in a manner that meets IRS approval.

Tip number three: Avoid refund anticipation loans. There are a number of tax preparers who suggest that their clients take refund anticipation loans — also known as advanced refunds. What they may not say upfront is that the fee for doing so is usually pretty steep. With electronic filing, refunds generally do not take long to get, so paying fees for advanced refunds is just a waste of money.

A good tax preparer takes the job seriously and will do only what is truly best for the client. Connecticut residents who have fallen prey to one of the bad ones may find themselves facing IRS audits. Those who have found themselves in this position due to the actions of their preparers can seek help addressing the matter as swiftly as possible.