BBB Offers Tips for Choosing a Tax Preparer
Austin, TX - February 8, 2010 - According to the IRS, 80 percent of Americans enlist the help of a tax preparer or tax software when filing their taxes. Last year, BBB serving Central, Coastal and Southwest Texas received 43 complaints against tax return preparers alleging errors in their return which resulted in fines and fees. Better Business Bureau recommends taking the time to find a reliable tax preparation service to avoid any fines or fees if the return isn’t correct or filed late.
“It’s very important to use a trustworthy company when filing a tax return to avoid errors or extra costs,” said Carrie A. Hurt, President and CEO of BBB serving Central, Coastal and Southwest Texas. “Consumers need to be cautious of any tax preparation service that guarantees a big refund because there is no way to tell how much money someone can get back without going through the whole process first.”
To find a trustworthy tax preparer, BBB offers the following tips:
- Check credentials. While there are no national or state (TX) regulations for paid tax preparers, only attorneys, certified public accountants (CPAs) and federally authorized tax practitioners known as Enrolled Agents may represent taxpayers before the IRS at all administrative levels, including an audit. Also, find out if the preparer is affiliated with a professional organization that holds its members to a code of ethics.
- Don’t fall for the promise of a big refund. Be wary of any tax preparation service that promises larger refunds than the competition and avoid any tax preparers who base their fee on a percentage of the refund.
- Ask around. Get referrals from friends and family on who they use and check the BBB Reliability Report™ on tax preparation services at www.bbb.org.
- Read the contract carefully. Read tax preparation service contracts closely to verify the cost of services and how the cost will be affected if preparation is more complicated or time consuming than expected. Additionally, consumers should find out whether the tax preparer will represent them in case of an audit.
- Think long term. Many tax preparation services only operate for the months leading up to April 15th. In case the IRS finds errors or in case of an audit, consumers may need to be able to contact the tax preparer in the future.
To check the reliability of a company, visit www.bbb.org.
About BBB:
BBB's mission is to be the leader in advancing marketplace trust. BBB accomplishes this mission by creating a community of trustworthy businesses, setting standards for marketplace trust, encouraging and supporting best practices, celebrating marketplace role models and denouncing substandard marketplace behavior.
Businesses that earn BBB Accreditation contractually agree and adhere to the organization's high standards of ethical business behavior. BBB is the preeminent resource to turn to for objective, unbiased information on businesses and charities.
Contact BBB serving Central, Coastal and Southwest Texas at (512) 445-4748.
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