Consumer Traps & Tips #12 - Selecting the Right Tax Preparer

For immediate release: February 17, 2009
Contact: Dennis Moore – PBC Consumer Affairs, 561-712-6600

Trap

The 2008 tax year was not very good for Ruth from West Palm Beach. She was widowed, her small business failed, and her rental property didn’t do well.  All of this left Ruth confused since her husband had previously handled the taxes.  With all these changes in her life, should Ruth try to do her own tax preparation?  She had seen advertisements for tax preparers and even heard she could get her refund right away, for a fee.  One tax preparer promised to get her a big refund. What should Ruth do? 

Tips

The tax preparation industry is not regulated in Florida, and preparers are not required to be licensed or pass a background check.  The following lists several ways to avoid a tax preparation nightmare:

• First, decide if you even need a tax preparer.  Many tax returns are not complex and require only a simple filing.  Call the IRS at 1-800-829-1040 and ask about free or minimum cost assistance programs.
• Ask about your preparer’s qualifications.  Some situations may call for a certified public accountant or an “enrolled agent” licensed by the IRS. 
• Get an estimate of costs up front.  Don’t be afraid to shop around or change preparers if you are not comfortable.
• Be wary of preparers who promise a big refund or base their fee on the amount of your refund.  You, not the preparer, are ultimately responsible for your tax return.
• Be cautious about “refund anticipation loans.”  These loans are secured by your anticipated tax refund and may carry hefty fees and interest rates.  By using the IRS’s e-file program, tax refunds can be processed in as little as 10 days.

For more information, call Palm Beach County Consumer Affairs at 561-712-6600 (Boca/Delray 888-852-7362 toll free) or visit www.pbcgov.com/consumer to see if other consumers have filed complaints against the company you are considering.