Proven Tips for Finding a Professional and Qualified Tax Preparer

• Author: Jenny Wolff
• Posted: 2024-04-14

For some tax filers, their tax return is simple enough to handle personally. For others, a more complicated tax return may necessitate the outside help of a professional. If this is you, now is the time of the year to find a tax preparer if you have not yet done so. You do not want to leave this task to somebody not qualified to handle your personal finances.

Here are a few proven tips to ensure that you find a professional and qualified tax preparer.
 

Do Your Due Diligence with Research

The first thing that you need to do when choosing a tax preparer is to research their reviews. Start with word of mouth to find recommendations from trusted friends and family members. You can also check with various online community groups or the Better Business Bureau. The bottom line is that you do not want to go with the first name that comes up in an online search without vetting their credentials first.
 

Ask for Credentials

It is important to realize that anybody can claim to be an expert in finances and tax returns. The government only requires that the person preparing the federal tax return have their own IRS preparer tax identification number (PTIN). Choosing a credentialed preparer will ensure that this person has been formally vetted by either the IRS or your state regulatory board.

There are a number of different credentials that may qualify somebody to prepare taxes for another individual. Examples of relevant credentials include attorneys, certified public accountants, and enrolled agents. For instance, an enrolled agent has passed the specific exam mandated by the IRS to receive this license. The IRS also maintains a database of tax preparers who have completed a set number of continuing education hours per year.

The best way to find a credentialed tax preparer in your area is to consult with the IRS’s online Directory of Federal Return Preparers. This database will provide you with a variety of different licensed professionals that meet the requirements as set forth by the IRS.
 

Interview the Potential Candidates

While you do not need to conduct a lengthy interview to find the best fit for your needs, it is always a good idea to ask the potential candidate a few key questions. Start with asking to see their current professional credentials. If the person does not have any sanctioned IRS credentials, you can ask them about their experience and their educational level.

This is when you also want to ask them about what they do each year to continue their education in the field of tax law. These laws change every year to some degree, making it important that preparers stay up to date on the latest changes to the tax code.

You also want to make sure that you understand their fee schedule. Do they charge per return or by the hour? This fee may depend on the complexity of your return.
 

Red Flags to Watch Out For

As you go through this journey, be sure to keep in mind that there are some red flags to be aware of and put on your radar. A preparer who wants to base their fee on a percentage of your refund could be involved in shady practices that do not benefit your personal finances. You should be wary of a preparer who wants you to sign a blank return. Doing so could open up the door for the preparer to put their own bank account on the form and pocket your refund.

You should also make sure that you review the return before it is filed. Lastly, the IRS requires that all paid preparers sign the returns of their clients and include their PTIN on the official document. A preparer who refuses to sign the return before filing is a major cause for concern.

You do not want to make the mistake of leaving money on the table or making a costly error when filing your tax return. Choosing the right person to handle your tax return will give you financial peace of mind.