Choosing a Tax Preparer

If you pay someone to do your taxes, be careful. According to Dr. Rebecca J. Travnichek, Family Financial Education Specialist with University of Missouri Extension in Northwest Missouri, most tax return preparers are professional and honest, but some are not. Some preparers offer high-cost services or arrange refund anticipation loans that reduce refunds. Take the time to find a qualified tax professional. As a taxpayer, you are ultimately responsible for everything on your return no matter who prepared it. Consider using the tips below to choose a preparer who best meets your tax preparation needs.

• Ask about service fees. Avoid preparers who claim they can get larger refunds than others, those who guarantee results or those whose fees are based on a percentage of the refund.

• Beware of a preparer who guarantees results or who bases fees on a percentage of the amount of the refund. A practitioner may not charge a contingent fee (percentage of your refund) for preparing an original tax return.

• Understand that the most reputable preparers will request to see your receipts and will ask you multiple questions to determine your qualifications for expenses, deductions and other items. By doing so they have your best interest in mind and are trying to help you avoid penalties, interest or additional taxes that could result from an IRS examination.

• Do you qualify for free tax preparation services? Many communities have Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites. Through these programs, volunteers provide assistance to low-income, disabled, homebound and English-as-a-second-language taxpayers. For more information on the VITA or TCE programs, and to search nationwide for free tax preparation sites in your area, visit http://extension.missouri.edu/hes/taxed/vitasites.htm

Taking time to do your homework can pay off by saving you money and helping you avoiding the headache of dealing with an unqualified or dishonest preparer. Report suspected tax fraud and abusive tax preparers to the IRS by calling 1-800-829-0433.