Tax season is a time when many consumers are more concerned with whether or not they will be paying in to the IRS or receiving a tax refund. With their mind on the end result, many consumers fail to pay close attention to those who are actually preparing their tax return. Texas authorities have issued a warning to taxpayers in the Lone Star state which can be heeded by Americans across the nation. To avoid being scammed by a tax preparer, consider the following tips before trusting someone else to prepare your return.

  • Do your research- Before you hand over documentation needed to prepare your return, do you homework by researching the individual or firm offering services. Check credentials to ensure the person viewing your information is qualified to prepare your return. In addition to checking credentials, spend some time checking other background information. You can contact your state’s attorney general’s office and other consumer protection groups to see if other consumers have complained about the tax preparer in the past. If you are considering a certified public accountant, you can check the licensing board for the state to check for consumer complaints on file.
  • Request fees in writing- A common consumer complaint is being charged excessive fees by tax preparers. To avoid a surprise bill, ask the preparer to list all fees associated with preparing your return in writing. Review the fees carefully and compare several tax preparers to determine if the rates are fair for your area.
  • Year round availability- Questions and problems can arise after your return has been filed. Is the person in question available throughout the year or will they be packing up shop after tax season? If they are not open year-round, who will you go to with concerns if there is an issue with your return?
  • Ask questions- You will need to ask and confirm the basis for all deductions claimed on your return. It is also important to make arrangements for the return of your personal documents used to prepare your tax return. Another common complaint from consumers who have been scammed by untrustworthy tax preparers is having returns not filed on time. Request and require proof that your return has been filed in a timely manner.

At the end of the day, it is the taxpayer who is responsible for ensuring their return is filed correctly and on time. The taxpayer is on the hook if mistakes have been made, not the tax preparer. It is imperative you find an honest tax preparer to avoid future problems with the Internal Revenue Service as a result of errors on your tax return. With more than 1 million people offering services during tax season, you must use due diligence to weed out the less savory characters.