Request an Interview
Online evaluations might teach you a lot, but nothing beats a face-to-face encounter. This is especially vital if you’re seeking a long-term business partner.
Tax season is hectic, so don’t expect a lengthy talk; instead, request a five- to the ten-minute phone call at the very least. Then, if it is not readily available on the preparer’s or professional’s website, obtain the following information:
- How is data safeguarded?
- Do you charge a set cost or an hourly rate for each form?
- How many tax returns do you file each year?
- Do you prepare all of your returns, or do you get help?
- Do you file your tax returns electronically?
“If they’re making paper submissions, it’s because they’re not doing a lot of (returns),” Wood says. That could be a sign to keep looking, regardless of how impressive a person’s credentials are. “I’d rather have an enrolled agent who handles taxes daily than a CPA who does taxes on the side,” Wood adds.
Watch for Red Flags
Not every person who purports to be a tax preparer is genuine. The following red flags may indicate that someone is inept at best or a criminal at worst.
Promises of a fantastic return.
As with most things in life, if it sounds too good to be true, it often is. Unless your income, family status, or tax law has dramatically altered, your refund should be consistent from year to year. Be careful of anyone who claims to be able to get you a refund significantly over what you’ve previously received.
Unwillingness to sign a return.
“You have to sign a return if you prepare it,” Janssen explains. It’s required by law. So be wary of anyone who refuses to sign a return, and don’t sign anything unless you see your preparer put their name first.
A temporary office or a website that is no longer available.
While some independent tax preparers operate from home, be wary of anyone who does not appear to have a consistent company presence. “If it’s difficult to obtain information,” Voloshin says, “that’s a significant red flag.” If you are audited or have a question about your return later, you want to know that the preparer will be easily located.
We will charge you a fee based on the amount of your return.
Tax preparers who are legitimate will charge an hourly or set fee for their services. However, according to Janssen, assessing a charge depending on the magnitude of your refund is a violation of professional ethics.
