Mistakes Made When Choosing A Paid Tax Preparer
This is another addition to the series “Mistakes made when choosing a paid tax preparer”.
I regularly review the prior tax return of a new client that I receive. From reviewing these tax returns it is obvious to me that the most common mistake taxpayers make when selecting a tax preparer is failing to determine the qualifications of the preparer. I have seen several errors on prior year returns that appear to be due to the tax preparer’s lack of knowledge with the tax laws and/or lack of knowledge regarding how to complete a form or what attachments need to be made or how to construct the attachments. The sad part is that most of these clients never had the slightest idea that their tax return may have been prepared incorrectly. Every taxpayer always assumes their return is easy and just like everyone else’s.
When I bring a taxpayer’s attention to the fact that their prior year return contains errors they are usually shocked. I asked them what the preparer told them when they reviewed the return and the answer is always the same, “My prior preparer never reviewed my return with me. They just told me where to sign.”
When I ask why they selected the person to be their tax preparer, the answers are usually:
- They were the cheapest preparer they could find (and since their return is easy it’s appropriate to pay the least amount possible to have their return prepared).
- A friend/relative recommended them or they are a friend or relative (because this qualifies them to be a good preparer).
- Someone (either a friend/relative or the tax preparer) told them that they could save them a lot of money.
- They were the only preparer who would prepare their return because they waited until the last minute to try and find someone.
Thus, I have determined the biggest mistakes taxpayers make when choosing a preparer includes the following:
- They do not even try to find out the credentials of the person who will be preparing their return.
- They do not interview the preparer prior to selecting them to determine if they are familiar with the type of items on their return.
- They are too focused on the price of the return instead of the quality of return they will be receiving.
- They are too focused on the amount of their refund (or amount that they may owe) instead of on details of their return to see if it was prepared properly.
- They wait too long to find a tax preparer.
Thanks Gina. For more from Gina please visit her blog (Tax Tips Blog) http://glgcpa.com/blog
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.
© 2008, Bruce Mc. All rights reserved.
