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What to look for when checking out a possible tax preparer

February 1, 2014

Seeking tax helpThis year you're turning over your taxes to a professional. You've evaluated the tax preparer options and have decided on which type to hire.

Now you need to make sure the tax preparer is on the up and up.

That's right. Some tax pros are unscrupulous.

They take advantage of taxpayer eagerness to turn over this annual task. They also know they often can count on some filers' eagerness for a bigger refund.

The result can be tax refund fraud and/or identity theft.

Avoiding bad tax pros: Today's Daily Tax Tip is a collection of advice from the Internal Revenue Service's Criminal Investigation unit on how to spot an abusive tax preparer.

Avoid return preparers who claim they can obtain larger refunds than other preparers.

Avoid preparers who base their fee on a percentage of the amount of the refund.

Use a reputable tax professional that signs and enters a preparer tax identification number (PTIN) on your tax return and provides you with a copy for your records. 

Consider whether the individual or firm will be around to answer questions about the preparation of your tax return, months, even years, after the return has been filed.

Never sign a blank tax form.

Ask questions. Do you know anyone who has used the tax professional? Were they satisfied with the service they received?

Still your responsibility: Remember, regardless of who fills out your 1040 — your brother-in-law who's an accountant, the tax franchise office down the street or the preparer everyone in the office was using — you, the taxpayer, are ultimately and legally responsible for the accuracy of all entries made on the returns.

And by return, the IRS means not just the 1040, but also all related schedules, forms and supporting documents.

So be rigorous in vetting the tax pro who will help you file.

Bad tax help's added costs: Intentionally entered wrong information or simple honest errors will cost you. You could face added taxes and penalties.

And if the IRS determines you were complicit in tax evasion, this felony is punishable by up to five years in jail and a $250,000 fine.

You also might find these items of interest:

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Calvin James

    Thank you for the tips! I have never used a tax preparer because my taxes have always been pretty simple. This year I worked as an independent contractor so I think things might be a bit more confusing. I think I am going to look into hiring one.

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