Choosing the Right Tax Pro: Your Guide to a Stress-Free Tax Season

When should you work with a tax professional?

It is well worth your time and money to have your taxes done by a trained, experienced, and knowledgeable tax professional. You should also develop practices and habits for finding that tax professional, even if you don’t plan to use one every year, but just when you need a bit more help. Most people don’t have a simple life--even if you think you might, you probably don’t. You likely have multiple income streams, many life activities from side gigs to a complex family structure, to changes every year. You could be eligible for tax credits and deductions you weren’t aware of, which could lower your tax liability. This means that you’d pay the IRS and state less in taxes and probably get a bigger tax refund. But you’re not going to find that money on your own, on a TikTok video, YouTube tips, or “tax pro Uncle Bob,” which is why it’s a good idea to work with a reputable Tax Pro.

It's an especially good idea to work with a tax expert when you’ve gone through a life change compared to last year. Did you have or adopt a child this year? Or have a child turn 17? Did you start a new job? Did you start earning money on the side through self-employment work or a side hustle? Even retire? What about buying or selling a house? Move to a new state? Invest in the stock market or virtual currencies, or inherit some assets? These are all huge moments in life on their own, but they also can mean there’s a change in your tax return. And working with a tax professional who understands and can navigate the complex tax laws will help you make sure you not only file an accurate tax return but will help you get the biggest tax refund you’re owed.

What kinds of tax professionals are there?

There are many types of tax experts available to you during tax season and year-round. You have options, and you should take finding the best one for your personal and unique situation seriously. There are certified public accountants, or CPAs, enrolled agents, and tax attorneys. There are also just people out there who have no formal, regulated credentials, training, or experience, who can still file a tax return on your behalf.

Most importantly, work with a Tax Pro whom you trust with your most personal information and who is looking out for YOU. This person will know about your marital status, your children, your income, your Social Security number, bank account information, and more. In short, the most important financial details of your life. You shouldn’t just trust someone off the street with this information. It’s too big of a risk! And there are flags to tell you if you have the right person or not!

Paid preparers must have a PTIN, or Preparer Tax Identification Number, and not only have to, but will gladly sign your tax return and put the PTIN on your return. However, some do not, and others even fake it. So, before you trust someone to do your taxes, make sure they are what they claim to be by taking a few simple steps, asking some basic questions, and taking action. You need to be vigilant, so you don’t find yourself working with a ghost preparer, a scammer, or someone even worse. We recommend, at minimum, confirming the tax preparer’s credentials on the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications.

At Jackson Hewitt, we’re on your side. All our Tax Pros are required to take our Fundamentals of Tax Preparation Courses, and many take more, including advanced tax training over their careers. These classes provide our experts with an understanding of multiple tax topics, including what information the IRS and state require, filing basics, and an in-depth knowledge of key tax credits and deductions. This is all to make sure that you have an accurate tax return and get the guaranteed-biggest refund available to you.

What questions should you ask your Tax Pro?

As noted earlier, before you decide to hire someone to file your federal and even state income tax return(s), there are a few questions you should ask to make sure they’re the right person for you and that they are legit.

• Do you have a PTIN?
• Who will sign my return?
• What guarantees do you offer?
• What is your background and how long have you been working here?
• How long has your company been in business?
• Do you understand local and state laws in addition to federal tax laws?
• Do you understand things specifically related to my personal situation? For example, if you’re in the military, retired, or in a complex family situation.
• What records and tax documents do you need from me?
• Will you file an electronic or paper tax return? And will I get a copy of it?
• When and how can I work with you to file my tax return?
• What happens if the IRS or state has questions, or wants to audit my tax return?
• Do you have client testimonials and reviews that I can see?
• What training have you taken?

If your prospective Tax Pro isn’t proud to share these answers with you, that is a big red flag... especially regarding their answer to signing the return.

What are the signs of a bad tax preparer?

Unfortunately, there are a lot of bad actors out there. But there are some common red flags you can watch for and are signs that you shouldn’t work with them.

• They don’t have a PTIN and have weak credentials or no credentials that you can verify.
• They won’t sign your tax return, or they ask you to sign a blank return.
• They promise, or even guarantee, a huge refund, regardless of your personal situation. Taxes are calculated and the result cannot be known beforehand.
• They tell you that their fee will be based on a percentage of your tax refund.
• They aren’t available after the tax season is over or even before Tax Day, but after you’ve filed your return.
• Anything that sounds too good to be true, probably is. You will know it when you hear it, and if you need a reality check, take a pause, and see a Jackson Hewitt Tax Pro you do trust, and ask them if it sounds right.

At Jackson Hewitt, we want to help you file an accurate tax return and get you the biggest tax refund you’re owed. Find an office near you and work with a Tax Pro today to learn more.

About the Author

Mark Steber is Senior Vice President and Chief Tax Information Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

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