Anyone with basic tax and accounting knowledge can claim to be a professional tax preparer to earn extra cash. So it would be best if you took extra time researching when trying to hire a tax preparer near you. The best tax advisor in Denver can help you save money both in the short and long term through proper tax planning and structuring. As such, you shouldn’t take any chances when it comes to hiring a tax preparer.
Meanwhile, here are tips to help you find the best tax advisor in Denver.
Tips on How to Find the Best Tax Preparer
Basically, anyone can prepare tax returns; however, if you pay for this service, then you should work with someone who is registered with the IRS and has a PTIN. An IRS number is usually issued to qualified preparers.
Qualified prepares may include attorneys, CPAs, PTIN holders, and Annual filing season program participants. So, to get you started on choosing the best one, consider following the tips below.
Compile a list of Potential Tax Preparers
If you’re going to be working with any service provider at all, it is better to compare between several options than go with the first option that comes to your mind. Comparing several options gives you more chances of making better decisions.
Ask for Recommendations
Seeking recommendations often expose you to the best providers. That is because people would always recommend service providers who served them well. You can get these recommendations from friends, family, colleagues, or even from your financial adviser.
Search the I.R.S. directory
Every tax preparer must own a PTIN. The IRS contains a directory of PTIN holders who also have professional certifications. People who are listed on the IRS directory are credible to work with, so you can also check if the referrals from friends are listed on the directory.
Check or Verify Their Credentials
Tax scams are on the rise, and some dubious tax preparers can pose with fake credentials to lure unsuspecting victims. Just because a person sets up a business that offers tax preparation for individuals or businesses doesn’t exactly mean that they are qualified to do so.
You must ensure that your prospective tax preparer is properly certified and competent enough to handle your tax returns.
Check if they e-file
According to IRS regulations, paid tax preparers who prepare more than 11 returns for clients are required to file electronically through the IRS defile system. If your prospective tax preparer doesn’t e-file, it can mean that they aren’t doing as much tax preparation as you think, and that’s a red flag. Learn how White Label Program can Improve Your Revenue here.
Consider Their Fees
Professional tax preparers have their preferred method of charging. However, transparent ones will simplify their fees for you. Some charge based on each return, while others may charge on an hourly or monthly basis or even offer a one-off cost.
Before employing any tax preparer, make sure you understand their fee structure. You need to inquire about their fee structure before going ahead to hand over your record to them. You can even ask for a breakdown of the cost of different services.
Also, you should know that there are several factors that may influence the cost of preparing your tax returns which include the complexity of your return, the experience of the tax preparer, and your location as well. That’s why it’s important that you get a quote before employing a tax preparer.
Red Flags to Avoid
Some red flags may be obvious, while others are not. Watch out for any of these red flags and avoid them
- Tax preparers who ask you to sign a blank form
Tax preparers that ask you to sign a blank tax return form are mostly fraudulent. They can fill in the wrong information on the form and steal your refund.
- Tax preparers who refuse to sign
IRS laws require that tax preparers sign and include their PTIN on the taxpayer’s return form
- Tax preparers that don’t answer your questions
You should be able to ask your tax preparer questions if something is not clear to you. So, if they always evade your questions, something is definitely wrong.
Lastly, before you make a final submission of your tax return, make sure to review every piece of information you provide as well as the routing or bank account number. Also, ask your task preparer for a copy of the completed tax return form. Don’t hesitate to report tax preparers that you find to be abusive or dubious. Find the Best Student Loan Refinancing Options