How to choose a tax preparer

Choosing the right tax preparer is incredibly important.  Not only is the tax code complex, you are trusting all of your sensitive personal information to this person.  The person preparing your taxes must be trustworthy, intelligent, and experienced.  Making the wrong decision can cost you a lot of money, cause a major headache, and in extreme circumstances, will land you 3 hots and a cot in the Federal Pen.

Here are some suggestions on what to look for in a preparer (many of these are suggestions by the IRS, but I have added a couple of my own.

·  Check the person's qualifications. New regulations require all paid tax return preparers to have a Preparer Tax Identification Number (PTIN). In addition to making sure they have a PTIN, ask if the preparer is affiliated with a professional organization and attends continuing education classes. The IRS is also phasing in a new test requirement to make sure those who are not an enrolled agent, CPA, or attorney have met minimal competency requirements. Those subject to the test will become a Registered Tax Return Preparer once they pass it.

Note:  Charles M. Langevin, Jr. of Simplified Document Solutions has been preparing taxes for many years and has completed the IRS’ AFSP Program.

·  Check the preparer's history. Check to see if the preparer has a questionable history with the Better Business Bureau and check for any disciplinary actions and licensure status through the state boards of accountancy for certified public accountants; the state bar associations for attorneys; and the IRS Office of Enrollment for enrolled agents.

Note:  Simplified Document Solutions is a BBB accredited business with no complaints and an A- rating.

·  Find out about their service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers. Also, always make sure any refund due is sent to you or deposited into an account in your name. Under no circumstances should all or part of your refund be directly deposited into a preparer’s bank account.

Note: Simplified Document Solutions offers one of the lowest service fees in the Atlanta area.

·  Ask if they offer electronic filing. Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return. More than 1 billion individual tax returns have been safely and securely processed since the debut of electronic filing in 1990. Make sure your preparer offers IRS e-file.

Note: E-file providers must be fingerprinted and go through a FBI criminal records searc to become an authorized E-file provider.  Simplified Document Solutions is an IRS e-file provider. 

·  Make sure the tax preparer is accessible. Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case questions arise.

Note:  Simplified Document Solutions is open year-round and helps people with both taxes and bankruptcy throughout the year.  DON’T USE SOMEONE YOU MEET AT STARBUCKS!

·  Make sure the preparer has a secure office space.   The IRS still requires that preparers print out sensitive taxpayer information and maintain signed copies.  If an unauthorized person obtains access to your information, your identity could be compromised.  Storefronts with large glass windows do not provide sufficient protection against identity thieves.

Note:  Simplified Document Solutions takes protecting your information seriously.  After-hours access to our office requires the use of electronic access cards in three places, a regular key to get into the office and another key for the file cabinets.  There is only one person with access to all of these access points.  Our electronic files are protected by a world class firewall.

·  Find someone with sufficient experience preparing taxes.  Tax preparation is a seasonal business.  Unfortunately, that often means that the person that is hired in the big tax stores are often unemployed people who are just there to make a quick buck.  They have little to no training, have not had sufficient inquiry into their background, and will only be there one season. 

Note:  Charles Langevin is very experienced and is really the only one that will be handling taxes at Simplified Document Solutions.  We do not hire seasonal people with no experience.

·  Provide all records and receipts needed to prepare your return. Reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items. Do not use a preparer who is willing to electronically file your return before you receive your Form W-2 using your last pay stub. This is against IRS e-file rules.

·  Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.

·  Review the entire return before signing it. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.

·  Make sure the preparer signs the form and includes his or her preparer tax identification number (PTIN). A paid preparer must sign the return and include his or her PTIN as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return. The preparer must also give you a copy of the return.