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Be Wary When Selecting Tax Preparer
IRS: Taxpayer Responsible For False Return, Not Preparer
POSTED: 1:53 pm CST February 18, 2005
Last fiscal year, the federal government obtained more than 100 convictions of tax preparers for fraud. Of course, in some situations, it is possible that their clients knew what was going on. It is just as likely they did not. The IRS noted that when it finds a false return, it is the taxpayer who is responsible for paying the additional taxes and interest due. The taxpayer may also be subject to penalties and even criminal prosecution.
How do you avoid such a nightmare? Avoid tax preparers who boast they get much larger refunds than rivals. And stay away from preparers who base their fee on a percentage of the refund delivered. Also, consider whether the individual or their firm will answer questions about how the return was filed long after the fact. Tax Preparation Levels Of Expertise When it comes to professional tax preparation help, there are varying levels of expertise available to help you find your way through the sometimes dizzying array of rates, tables, deductions and credits. And just like chosing a doctor, there's no need to select a super tax specialist if all you have is a simple return. Why pay the extra money that you will be charged? At the lower end, there are lesser experienced and educated preparers for whom you might not even need an appointment. Farther up the line, there are enrolled agents, certified public accountants and the higher-octane tax attorney. Among places to check on the backgrounds of potential preparers, are the Better Business Bureau, your state board of accountancy for CPAs, bar associations for attorneys and the state attorney general's office. Keep in mind that no matter who helps you crunch the numbers, ultimately you are legally responsible for the information on your return. What's changed in this year's tax law? Find out here.
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How do you avoid such a nightmare? Avoid tax preparers who boast they get much larger refunds than rivals. And stay away from preparers who base their fee on a percentage of the refund delivered. Also, consider whether the individual or their firm will answer questions about how the return was filed long after the fact. Tax Preparation Levels Of Expertise When it comes to professional tax preparation help, there are varying levels of expertise available to help you find your way through the sometimes dizzying array of rates, tables, deductions and credits. And just like chosing a doctor, there's no need to select a super tax specialist if all you have is a simple return. Why pay the extra money that you will be charged? At the lower end, there are lesser experienced and educated preparers for whom you might not even need an appointment. Farther up the line, there are enrolled agents, certified public accountants and the higher-octane tax attorney. Among places to check on the backgrounds of potential preparers, are the Better Business Bureau, your state board of accountancy for CPAs, bar associations for attorneys and the state attorney general's office. Keep in mind that no matter who helps you crunch the numbers, ultimately you are legally responsible for the information on your return. What's changed in this year's tax law? Find out here.
Copyright 2005 by The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
