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Choosing a Tax Preparer

Posted Wednesday, January 27, 2010
by BBB Serving Central & Northern Alberta

 

A little homework can prevent serious problems with your income tax return. The deadline for filing income tax returns is still months away. Now is a good time to select a tax professional. Better Business Bureau however, cautions that consumers can run into serious problems if they don’t do their research to find a reputable tax preparer.

While most tax professionals are qualified, reliable and honest, it is well worth the time to look for a qualified, dependable and trustworthy service to avoid problems during and after consumers hand over their documents for preparation of 2009 income tax returns.

Tax time can be stressful and choosing to use a tax professional can help. Consumers and businesses need to understand that they are ultimately responsible for everything on a tax return, regardless of who prepared it. Nobody wants to have to deal with income tax return problems because of a mistake made by the preparer.

Your BBB has some tips for selecting a reputable tax preparer and avoiding those who may be problematic:

Check on qualifications. Ask about their training, experience and knowledge of current tax law, and whether they are members of a professional organization with continuing education requirements and a code of ethics.

Learn about their service terms in advance. Find out whether they guarantee the accuracy of their work and amend the return if there’s a mistake.

Ask for references. Get referrals from satisfied clients.

Check with BBB (edmonton.bbb.org) to determine if the tax preparer has a reputation for reliability and trustworthiness.

Request a quote. Ask for an estimate of the preparation fee before authorizing the work.

BBB advises to steer clear of tax preparers who sound too good to be true. Beware if they:

  • Boast they can obtain larger refunds than their competitors.
  • Pressure you to sign up for immediate payment of your refund. This involves
  • a loan that typically carriers a high interest rate.
  • Base their fee on a percentage of the refund amount, rather than the complexity of the tax return, or
  • Don’t ask to review your records and receipts, or discuss whether you qualify for expenses and deductions.

Once your income tax return is prepared, make certain the preparer has signed it and get a copy and payment receipt for your records. Also review the return before signing it and ask for clarification of any entry you don’t understand.

Canada Revenue Agency wants consumers to know that tax preparers are acting illegally if they encourage you to claim inflated personal or business expenses, false deductions or excessive exemptions; manipulate your income level to obtain false tax credits; ask you to sign a blank or incomplete form or guarantee that you will not be audited.

To learn how to file online and other information about Canadian tax law, go to the Canada revenue Agency website: cra.gc.ca.

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