Over 60% of taxpayers use a tax professional. Choose a good one!

Preparer licensing starts next year. In the meantime, the IRS wants you to ask the following:

1. Is your preparer taking continuing education courses?
2. Does your preparer subscribe to a Code of Ethics?
3. Does your preparer have a negative history with a state board, or a criminal history?
4. Does your preparer base his fees on a percentage of the refund?
5. Does your preparer claim he can obtain larger refunds than other preparers?
6. Is your preparer in business year round?

A good preparer

• takes continuing education courses
• subscribes to a Code of Ethics
• has no history of complaints with a state board or the BBB, and has no criminal history
• bases fees upon the complexity of the return
• makes no exaggerated claims about getting larger refunds
• is in business year round and available when you get a letter from the IRS or the state.
  

A good preparer wants to see records and receipts, and will question you carefully.

Never sign a blank return, or a blank e-file authorization.

Review your return before signing it. You are responsible for its content.

A paid preparer is required by law to sign tax returns. If he doesn’t, ask why. Is he trying to avoid declaring the income on his tax returns? You’re paying taxes, why shouldn’t he? A good preparer is never afraid to sign a properly prepared return. An ethical preparer will declare all his income on his own tax return.