Choosing Your Tax Professional Wisely

When it comes time to prepare your tax return, you may find the number of potential deductions and credits, quite overwhelming. Not to mention the various schedules, forms and calculations that must be completed. Therefore, it is no surprise that more than half of taxpayers choose to hire a tax professional or accountant to assist them in filing their return. Tax professionals, such as HCS, LLC in North Richland Hills, TX, handle the most sensitive financial information of their clients. So here are a few tips to make the best choice of a tax professional for your needs.

IRS Preparer Identification Number

To make sure that your tax professional is eligible to prepare federal tax returns, they must have a valid 2015 Preparer Tax Identification Number (PTIN). However, tax preparers have a variety of skills, education and experience. Therefore, you need to check their representation rights. So it is important to check the IRS database to determine what the professionals in your area have expertise in and confirm their PTIN is current.

Check Their Credentials

The importance of your tax professional’s credentials cannot be over emphasized. Therefore, do not be afraid to ask about their continuing education and professional organization associations. New laws, such as the Affordable Care Act, have plenty of tax implications so it is important that your tax professional or accountant is up to date on these matters.

The most important thing to understand here is that you have to be sure they are qualified to handle the intricacies of your particular circumstances and how they impact your return.

Things to Remember When Working With a Tax Preparer

Here are few tips of things to avoid, thus making sure that you protect your identity during this tax season. While a majority of these are self-explanatory, it is important that you keep them in mind when dealing with your tax professional.

• Check on the fees upfront and avoid preparers who base their fees on a percentage of your refund
• Always make sure that your refund is deposited into your checking or savings account, not an account of the tax preparer
• Make sure that your preparer offers IRS e-file and that you can have your return filed electronically. This is the safest and most accurate way to file your return, even if you choose to do it yourself.
• Always present your W-2 and other documentation to your tax professional. You should not rely on a tax preparer who is willing to use your last pay stub, as this is against the IRS rules.
• Never sign a blank return.
• Review your return before signing and filing.
• Make sure your preparer will be available after your return is filed for any questions you might have.
• Ensure that your tax preparer signs the return and includes their PTIN. This is a requirement by law and they must also provide you a copy of your return.
• Report any tax preparers who may have contributed to potential tax fraud. The IRS offers a form where these complaints can be filed.

Understanding Your Filing Situation

Keep in mind that chain tax preparers do have training at the beginning of each new tax season over various changes. They also have the assistance of different software programs. Therefore, if you do not own a business or have multiple income streams, this might be the best option for getting your return filed quickly and fairly accurately.

However, if there are different incomes that you receive, investments and business deductions to consider, it might be worth paying the additional fees to a tax professional who specializes in that type of filing situation. Thus, you can confirm you are getting all the deductions that you qualify for based on your specific circumstances.

Additionally, you need to keep in mind that your accountant is able to assist you in creating a tax plan and dealing with complex financial situations. But they might not be able to assist you with all of your tax filing issues. Therefore, you want to be sure that you ask them about their tax filing experience before you decide to hire them to file your return.

Finally, it is important to remember that you are the first and last line of defense in protecting yourself during tax season. So work hard to choose a tax professional that can assist you filing your return accurately and timely.

Click on the link below to connect with a tax professional at HCS, LLC in North Richland Hills, TX, who can share their experience and qualifications to handle all your filing situations.