With the last-minute tax law changes, taxpayers who have always prepared their own returns are looking for outside help to ensure they receive all the benefits they are entitled to under the new laws. Additionally, once you have a relationship with a tax professional, he should be able to advise you how the new laws will affect your 2013 taxes.
Most tax preparers are professional, ethical and honest. When choosing someone to prepare and file your taxes, you should consider several factors. First, there are several types of preparers you should never consider. Among these are companies or preparers who claim they can get you a higher refund than others. Returns that are prepared honestly and competently will all result in you receiving the same refund. There is no secret formula to calculate a bigger refund.
Second, you should avoid any preparer who bases the fee charged on a percentage of the refund. This can lead to the “padding” of your expenses and the “shaving” of your income. While these can increase the refund you receive, the fee you pay the preparer is increased, resulting in a tax return that may be questionable at best. Remember you are legally responsible for the information contained in your tax return, not the preparer.
When choosing a tax professional, you should keep in mind reputation, credentials and stability. Ask your friends and associates who they use as their preparer, and if they are satisfied with the service they received. You should be comfortable entrusting your personal information with this person or company.
Tax preparers can have different titles based on their education and experience. They can be called a Certified Public Accountant (C.P.A.), an Enrolled Agent (E.A.), an Accredited Tax Preparer, a Licensed Public Accountant or a Tax Attorney. Only C.P.A.s, E.A.s and attorneys can represent taxpayers before the IRS in all matters. This representation includes audits, collection actions and appeals. Other types of preparers can represent you during an audit only. You should inquire about the preparer’s affiliation with professional tax organizations. These organizations provide tax preparers with ongoing education and resources and hold them to a code of ethics.
Unfortunately, the IRS does not respond instantly when problems occur with your return. Sometimes it is months, even years, before they question an entry in your return. When choosing a preparer, you need to consider whether that individual or their firm will be in business for the long run. The tax professional you choose should always sign the return and provide you with a copy for your records. They should make you aware of how to reach them should you have questions when the busy tax season is over.
Choosing a tax professional is an important decision and should be made carefully. Please keep these cautions and suggestions in mind when choosing someone to prepare your return(s).
At Henssler Financial we believe you should Live Ready, which includes knowing how to consult an expert when you need one. If you have questions regarding your tax return, the tax experts at Henssler Financial will be glad to help. You may call us at 770-429-9166 or email at experts@henssler.com.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
