Choose a tax preparer for the right reasons
This is another addition to the series “Mistakes made when choosing a paid tax preparer”.
One common mistake is choosing a paid tax preparer out of fear instead of out of an understanding what a tax preparer really can and cannot do for you.
For example, people may take extremely simple (1040EZ) returns to well-known companies because they are afraid that “they might mess up” if they do it themselves. They assume that the preparer will have done everything possible to minimize their taxes, and that the preparer has an adequate amount of tax-related knowledge and experience. They don’t ask questions about the preparer’s background or about what type of return might be best for them. Instead, they focus on “what they will get back” and how quickly they might see a refund — even if that refund turns out to be less than they might have otherwise gotten.
It’s also important to realize that preparers only have the information that you provide them to work with. If you provide them with inaccurate or incomplete information, you’ll get less than stellar results. They cannot make up missing data, or suggest deductions that you don’t appear likely to qualify for. It’s your responsibility to provide truthful and accurate information so that your return can be completed correctly and thoroughly. Remember that having a paid tax preparer complete your return does not absolve you of this responsibility or protect you from audits.
Using a paid tax preparer can be beneficial in many instances, especially if you use the same preparer year after year and meet with them prior to turning in your information for your return. It’s important to choose a preparer with a similar philosophy to you. Are you ok with taking deductions that may cause a lot of paperwork & possible payments in the future? (Such as deducting a valid home office now, and then having to complete related paperwork when you sell your home.) Or are you on the opposite side, where you prefer to miss out on some valid deductions just because you don’t feel it’s worth the hassle? Be sure you and your preparer are on the same page.
Schedule an informational meeting with them during the off season to get ideas on exactly what you’ll need to save and document in order to maximize your deductions and survive an audit.
Be sure that you’re choosing the right tax preparer, and for the right reasons.
For more from this author/blogger please visit Blunt Money.
Again, I want to invite any and all guest post on this subject. I want to hear from all bloggers or just readers with their own input. Let’s see what you see I am missing. If you have some words of wisdom on this subject please let us share it with everyone, if it is something that has already been covered, so what, I am looking for others to tell what they know or have learned about finding a paid preparer. Repetition drives the point home. There is still time.
© 2008, Bruce Mc. All rights reserved.
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#1 by Robert D Flach on October 8, 2008 - 7:25 am
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Bruce + Blunt Money-
The guest post has made some excellent points that I, as a professional tax preparer, wish all clients understood.
In my recent CLIENT UPDATE newsletter I instructed -
“I need specific numbers for deductions you are claiming. ‘Claim the maximum’ or ‘Whatever I am allowed’ or ‘Same as last year’ don’t cut it. The maximum is what you actually paid – and you are allowed what you actually paid! It is very rare that an expense or number of miles driven for an activity is exactly the same as it was the previous year (although, I will admit, not impossible). I cannot make up numbers for you– I need you to tell me ‘$1023.50’ or ‘$20.00 per week for 50 weeks’ or ‘4638 miles’!”
TWTP
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