Preparing taxes is a daunting task. And although it feels like they were just filed, it's time to take another look at filing taxes. Small Business owners have a limited amount of time to take advantage of some special deductions this tax year. That’s why many business owners choose to hire a Tax Preparer or Tax Professional to handle their Tax Filing needs. But choosing the wrong Tax Preparer can lead you to owe the IRS or even be the victim of IRS Audits, IRS Liens, or IRS Levies. Make sure you avoid these 3 Red Flags and ask good questions if you don’t want to end up with an Income Tax Problem on your hands.
Red Flags
Steer clear of any Tax Preparer that does the following:
• Your Tax Preparer refuses to answer questions: You don’t want to owe the IRS, don’t let a shifty Tax Preparer get away with evading your questions. You have a right to answers.
• Your Tax Preparer wants a cut of your Tax Refund: This almost guarantees that the Tax Preparer will do anything it takes to increase the amount of your refund, even going against IRS codes and policies. This can result in IRS Liens and Levies being filed against you.
• Your Tax Preparer Guarantees a Tax Refund or IRS Settlement: There are no guarantees with the IRS, especially when it comes to Tax Refunds or IRS Settlements.
Questions to Ask:
These questions are determined by the National Society of Accountants.
• What credentials do you have? You want to work with certified professionals with excellent track records for success.
• How long have you been in practice? Experience is an excellent indicator that you’re working with a trustworthy individual or company. Look for at least 10 years of experience.
• Have you ever dealt with tax situations like mine? You want to work with a Tax Preparer with a ride range of experience. They should know how to handle every IRS Lien, IRS Levy and any other IRS problem in-between.
• Are you the person who will be handling my return? It’s important to know who will be handling your Tax Issues. You need their name and contact information.
• What organizations do you belong to and do they have a code of ethics? You want your Tax Preparer to be a member of organizations like the Better Business Bureau that require companies and individuals to adhere to a strict set of ethics. Look for the highest ratings possible within these organizations.]
Final Tip: You don’t want to owe the IRS or risk an IRS Audit because you chose the wrong Tax Preparer. Remember, if choose the wrong Tax Preparer you can be held liable for all of the damages incurred.