Professional tax services can save you hundreds or even thousands of dollars on your taxes, so you definitely want to find a place that knows what they’re doing. Filing taxes can turn into a long and complex process, and may cause you to feel completely lost. In order to avoid this issue, here are some things to look for in a tax service.
Be cautious.
One of the hardest things about looking for a tax service is finding out where you can get the best refund possible. Some tax preparers promise that they can obtain larger refunds than others. This is a huge red flag. If two preparers give you a similar number while someone else’s number is extremely high, this could be an indication of committing tax fraud. To avoid this, always be cautious of those who claim they can obtain larger refunds when compared to others.
Check their credentials.
The only people who can legally represent taxpayers in Internal Revenue Service matters are attorneys, certified public accounts, and enrolled agents. These people can represent you in audits, collections, and appeals. Other return preparers may only represent taxpayers for audits of returns they prepared. So this means that if an error was spotted in the last year’s tax information, your current tax service can represent you and defend you from further losses.
Find out affiliations.
Tax preparers that are affiliated with a professional organization are preferable. Tax services should have the most up-to-date knowledge on tax information and resources. Those who are affiliated with professional organizations will receive continuous education and updates on tax laws. A few affiliations to look for include the National Association of Tax Professionals (NATP) or the National Association of Enrolled Agents (NAEA).
Bring receipts.
Any reputable tax service will ask to see your receipts. They will also go over multiple questions with you in order to determine expenses, deductions, and other items. This avoids any penalties, interest, or additional taxes that could result from an IRS examination. Going to a tax service that requests receipts is a good way to have accurate information, bypass audits and possibly even find hidden deductions that others may have missed.
Ask about their level of expertise.
Tax services and tax preparers have varying levels of expertise, and they will usually charge accordingly. Certified public accountants (CPAs) specialize in doing individual income-tax returns. Tax services offered by CPAs encompass a wide variety of financial activities.
On the other hand, enrolled agents (EAs) only handle taxes. EAs have worked for the IRS for at least five years or passed exams on tax codes and calculations. Finally, national tax-prep chains offer simple, straightforward returns. They’re inexpensive and perfect for the individual who has an uncomplicated tax return.
Ask if they file electronically.
Tax services or individuals that file more than ten returns for clients must file the returns electronically, unless you specifically opt out. This is to ensure that your tax information is safe and processed in a secure manner. If your tax service company does not file electronically, you should move on. Either they are not updated on current tax laws or they have not filed enough.
