Professional tax preparation commercials are all over TV, radio, and billboards. Even if you’ve filed your own tax return in the past, it is very important to talk to a licensed tax professional/enrolled agent or CPA because of the huge tax increase and new type of taxes in the Affordable Care Act/ObamaCare. You want someone who is recognized by the IRS as a tax professional. Someone who understands tax law very well and can understand your tax situation, including all your tax deductions and credits available to you. The IRS will not review your tax returns, missing credits or deductions. The IRS only makes adjustments if you leave income off your return.
5 tips to choose the right tax professional for you:
1. Start looking now. Looking now for a licensed tax professional will save you the hassle and time. The licensed tax professional needs to be well-versed in all of the recent tax law changes and tax codes. The sooner you find the right professional, the sooner you can start the filing process and ultimately get your tax refund.
2. Check the preparer’s qualifications. Make sure your preparer is qualified. Just because they work in a nice store front or they have purchased a software package does not mean they are a qualified Licensed Tax Professional. There are two types of Licensing: CPA, They are licensed by the state board of accountancy, Enrolled Agents, licensed by US dept. of Treasury – the IRS calls them the “elite” tax Professionals.
3. Avoid Fraud: Per IRS, fraud runs very high among unlicensed tax preparers. Think about it, these unlicensed preparers have your social security number, your address, your income, your children’s names and date of birth. They have everything to either sell to someone else or commit huge identity fraud or tax fraud on you.
4. Check the preparer’s History. Check your preparer’s history by conducting your own research through various sources. Enrolled Agent: kyenrolledagents.com or CPA society. Also ask friends, family or co-workers for references.
5. Never sign a blank Return. It’s important to review your tax return completely and ask questions before signing it. You are ultimately responsible for what is reported on your tax return. Make sure the preparer signs your tax return and signs their PTIN number.
Selecting a tax account for professional tax preparation is a very important decision. After all, for most Americans, the annual income tax return is the single largest financial transaction that they have each and every year. Pick someone you trust that is Licensed as an EA or CPA. These Individuals have the skills and experience to help you get the biggest refund you deserve for this year and years to come.
At Jack McCarty MAI, CPA, EA LLC, we appreciate your business and strive hard to keep you informed on tax policy that affects you. As always, don’t hesitate to Just Call Jack at 502-327-8007 and let him prepare your taxes today!