If this past filing season didn't go as you had hoped, you might want to consider hiring a tax professional.
A reputable tax pro also could come in handy if some of the tax law changes in the One Big Beautiful Bill (OBBB) are enacted. Unless the Senate makes substantial changes to the massive $3.7 trillion tax and immigration measure approved by the House, tax planning and compliance could get more complicated.
And now, well before the Internal Revenue Code is revised (again) and without tax deadlines looming, is the perfect time to start looking for a tax professional that meets your needs.
My post on picking the perfect tax pro looks at the types of tax professionals you can choose from, as well as the search process.
Don’t gloss over checking out your chosen tax pro. Honesty and trustworthiness, both when dealing with you the client and with the Internal Revenue Service, is paramount when it comes to taxes.
Life imitates art imitates tax life: Such tax preparer attributes are why I chose the image of a planned San Antonio shopping center that’s at the top of this post.
Fans of the great AMC cable television series “Better Call Saul,” which obviously includes the artist who created the shopping center rendering, already spotted the law office sign bearing the leading character's his name.
Even better, the law office is next door to a tax firm. All us Saul fans also know that a disreputable tax preparation business, the TV show's fictional Sweet Liberty Tax Services, played a part in one of Saul Goodman’s illegal and unethical schemes.
The fake TV tax operation was a fake return filing mill operated by a convicted embezzler, who in this second career cheated the IRS and clients out of money.
Unfortunately, such tax cheating by professionals on behalf of unknowing clients also happens all too often in real life.
Beware tax preparers who broke bad: While most tax preparers are reputable professionals who provide reliable, correct service, the sad fact is that, as in all professions, some tax pros are in the business to make fast, and illegal, bucks.
That’s why the IRS regularly issues warnings about unscrupulous tax return preparers, throughout the year and in its annual Dirty Dozen tax scams list.
One immediate indicator that a tax preparer might be sketchy is that he/she/they base their fees on the size of the refund clients receive. The more money you get back from Uncle Sam, the more money the shady tax pros get.
And to get the largest possible fees, bad tax pros often fake deductions and credits.
Remember, even if you pay someone to prepare and file your taxes for you, the ultimate tax responsibility is yours. You agree to that when you sign, either by pen to paper or electronically, your Form 1040.
Note the sentence before the signature line above, which says, "Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and accurately list all amounts and sources of income I received during the tax year."
You declare, under penalties of perjury.
When the IRS discovers that the return is fraudulent, you will be the one legally on the tax hook, and who will end up paying what’s due the U.S. Treasury. At least until the IRS catches the bad tax pro and is able to get a conviction and collect restitution.
So, be diligent and thorough in your search for a tax preparer. Don’t be swayed by promises that you’ll get a huge tax refund. Legitimate tax professionals' fees reflect their years of expertise and continuing education.
They will make sure you get a legitimate refund. It may be a bit smaller, but not having to worry about the IRS coming after you for a return filing full of egregious, and illegal, errors is priceless.
You also might find these items of interest:
- Turning in tax pros who break bad
- 'Better Call Saul' wins real-life Liberty Tax trademark lawsuit
- IRS implements filing season changes to detect tax scams and return fraud
- Tax preparer and his company enjoined from using questionable tax scheme
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