Choose your tax preparer carefully
Tuesday, February 19, 2008 By John Branton, Columbian Staff WriterDoes the guy who does your income tax boast that he can get bigger refunds than anyone else?
Does your tax preparer say she’s so good that her fee is based on a percentage of how much she gets you?
If so, you may be cruisin’ for a bruisin’, says the Internal Revenue Service.
“Taxpayers are legally responsible for what’s on their own tax returns, even if prepared by someone else,” according to an IRS bulletin issued earlier this month.
It could come back to you if you hire a shady preparer who inflates your expenses, claims excessive exemptions or false deductions, or manipulates your income to get fraudulent tax credits.
That can lead to you being prosecuted, said Kenneth J. Hines, special agent in charge of IRS criminal investigations for this region.
More than 60 percent of taxpayers hire a preparer, and most tax preparers are honest and professional, the IRS says. Here’s how to find the good ones:
n A reputable preparer will ask lots of questions and ask to see your receipts, to keep you out of trouble.
n You should review your return and ask questions before signing it.
n Your preparer should sign your return and give you a copy, and be around to answer questions about it years later, if needed.
n Credentials count. Attorneys, certified public accountants and enrolled agents can represent you in an audit, collection matter or appeal. But some preparers can only represent clients in audits of returns they prepared.
n Ask acquaintances if they were satisfied with a preparer, and find out if the preparer is part of a professional organization with continuing education and resources, and a code of ethics.
John Branton covers crime and law enforcement for The Columbian. He can be reached at 360-735-4513 or john.branton@columbian.com. |