Most taxpayers will pay for help to file their taxes this year. Hawaii’s BBB encourages consumers to be careful when selecting tax preparation help or they may get hit with frustration, fines and fees if the return isn’t correct or is filed late.
According to the IRS, 80 percent of Americans get help from a tax preparer or tax software when filing their taxes. Unfortunately, every year BBB receives thousands of complaints from consumers against tax preparers. Commonly, complainants state that the tax preparer made errors in their return which resulted in fines and fees.
“Even though the tax preparer completes the return, it’s the taxpayer who is ultimately responsible for the return’s accuracy, and whether or not it’s filed on time,” said Dwight Kealoha, CEO of Hawaii’s BBB. “The fines, fees and hassles can mount if you choose an unreliable tax preparer, and that’s why it’s important to do your research.”
BBB offers the following advice to find a trustworthy tax preparer:
- Ask around. Get referrals from friends and family on who they use and check the BBB Reliability Report on tax preparation services.
- Look for credentials. Ideally, your tax preparer should either be a certified public accountant, tax attorney or an enrolled agent. All three can represent you before the IRS in all matters, including an audit. Also, find out if the preparer is affiliated with a professional organization that holds its members to a code of ethics.
- Don’t fall for the promise of a big refund. Be wary of any tax preparation service that promises larger refunds than the competition, and avoid any tax preparers who base their fee on a percentage of the refund.
- Think about availability. Many tax preparation services only operate during the months leading up to the April 15 tax deadline. If the IRS finds errors or you are audited, you might need to contact your tax preparer throughout the year.
- Read the contract carefully. Read tax preparation service contracts closely and understand the terms, such as how much the service will cost, how the cost will change if preparation is more complicated and time consuming than expected, and whether the tax preparer will represent you in case of an audit.
For more advice on finding professionals you can trust, start at bbb.org.
Established in 1945, Hawaii’s Better Business Bureau® (BBB) is the local authority on trust in the marketplace. BBB is an unbiased, nonprofit organization that sets and upholds high standards for fair and honest business behavior. Only businesses and charities that meet and adhere to BBB standards can receive BBB accreditation. Hawaii’s BBB provides objective advice, free business and charity reports, and educational resources on topics affecting marketplace trust. BBB also offers fair and timely dispute resolution programs for consumers and businesses. BBB resources are available online at bbb.org.