When the time comes to file tax returns, many people choose to hire tax preparers. It is essential to find a trustworthy tax preparer, especially if you lack knowledge about the ever-changing tax laws, went through some major life-changing situations, or if you own a business. However, if your goal is to find the right tax preparer, you should be willing to do your part of the work, which includes performing a lot of research. Here are some tips that you can follow to find the right tax preparer for your Tax Prep.
Which Type Of Preparer Is Right For You?
But first, you need to understand the type of preparer that you may be right for, whether it is an Enrolled Agent, a certified public accountant, attorney, or non-credential tax payers.
Enrolled Agent: An Enrolled Agent is a tax preparer approved by the IRS to represent taxpayers. An EA is a good option if you have a complex tax situation, but you also need to make sure that the expert has experience in the areas related to your personal situation.
Certified Public Accountants: Certified Public Accountant usually has a college degree, and they are skilled in accounting. This characteristic makes them a good choice for those who require complex tax planning and preparation. So, they are a good option, if your situation is complex.
Attorneys: Attorneys are the best option for those who are looking to legally cover some part of their income and for those who require specialized advice. However, keep in mind that attorneys usually tend to charge more.
Non-Credential Tax Preparers: Non-credential tax preparers usually work as their part-time only during the tax season; however, it does not mean that they will not do a reliable job, they will. These individuals usually need to possess an active PTIN (Preparer Tax Identification Number) through the IRS.
Most of these tax preparers are competent but before hiring anyone, you need to make sure that they have a national license. So, the following are the tips to help you find the right tax preparer:
Check Their Credentials: Whether you decide to go for an EA, CPA, tax attorney, or non-credential tax preparer, you need to make sure that the tax preparer is qualified to represent you and has the required credentials. So, make sure to ask about their qualification and their experience, before you decide to hire one.
Do Not Trust If The Preparer Promises You Big Refunds: if you come across a tax preparer who promises you a large sum of refund, this could be an indicator that they cannot be trusted. And most of these preparers charge their fee based on the tax refund that you get, so it is wise to avoid those who make such promises.
Ask Around for Referrals: One of the best ways to find a reliable tax preparer is to ask for referrals from friends and families. If someone you know has hired a tax preparer before, and the individual did a good job, you should consider getting in touch with that individual. But you should also make sure to check the reviews left by the previous clients.
Go Through Their Charges Policy In Advance: You need to make sure to ask about their fees in advance, to avoid any issues. Make sure that you read their contract carefully and understand how much they are charging. You should also ask them if there are any extra charges for additional works or if there were any unexpected complications during the process.
When you are looking for a tax preparer during this tax season, you should go through these tips to help you find a reliable and a trusted service provider.