With tax scams drawing many reports in 2019, Better Business Bureau advises consumers to be aware of the potential for fraud as they collect W-2 forms from their employers, and prepare to file returns.
Rushing to file could be a mistake, especially if you have a complicated return. BBB advises consumers to check a tax preparer’s BBB Business Profile first and to watch out for pitfalls that trip up taxpayers every year.
Make sure you have all relevant documents - not only W-2 forms, but 1099 forms - before you file. Not all tax preparers are created equal, so it’s important to check their qualifications. Ask what certifications they hold, how long they’ve been preparing taxes, and what could happen if the Internal Revenue Service rejects or challenges your return.
While most tax preparers are reputable and care about customer service, some are not. If you decide to hire a tax preparer, BBB advises the following:
Ask for referrals from friends, and review the preparer’s customer service record at bbb.org before you hire anyone.
Check credentials. Is the preparer a certified public accountant, a tax lawyer, or an enrolled agent? Will the preparer belong to a professional organization that requires members to adhere to a code of ethics?
Be wary of promises that you’ll get a refund. Until the preparer knows your situation, there is no way to know whether you’ll get a refund or how big it will be.
Check accessibility. You may need to contact your preparer after tax season is over. Will he or she be available?
Read the contract. Know what preparing your return will cost, what the fee covers, and whether the cost changes if you have a complicated return. Will the preparer represent you in case of an audit?
Check your return. Before you sign it, read it over to check for mistakes and ask the preparer to explain anything you don’t understand. Finally, don’t forget to sign it!
