Completing Your 2009 Return Can Be... Taxing.

By Les S. Thompson – Managing Partner
Les S. Thompson & Co., LLP
www.lestco.com

Tax season is here. As a taxpayer it becomes necessary that you make certain important decisions. Among them is whom do you choose as your tax preparer. The options are many. However, the decision you make will have far reaching consequences.  You may prepare your returns yourself; you may have a friend assist you; or you may choose to pay someone to do it for you. It is important that you make an objective and sensible choice.

The Internal Revenue code is complex. Preparing your taxes yourself may result in your being not aware of the deductions to which you are entitled. Sometimes the Congress of the United States makes late changes to the tax law; sometimes the IRS issues interpretations of the law of which you may not become aware since this is not what you do. It could be a costly omission. I suggest you ask an expert to help you; to prepare your returns for you. In the long run it may be less costly than preparing the return yourself or asking a friend to assist. Only certain professionals are  recognized  to represent you if  you are called  before the IRS.

While most tax return preparers are  honest, you may use the following tips to choose a preparer who will offer the best service for your needs.

Avoid the “I can get you back lots of money” guy
It is prudent to avoid preparers who claim they can obtain larger refunds than any other preparer or who guarantee results or base their fees on a percentage of your refund. Any refund which is not supported by the facts and the Internal Revenue Service Code can result in an audit. When that happens your time off work is needed to visit the office of the IRS; It will most likely mean you will have to pay someone to represent you; and  you will have to pay any interest costs and penalties the IRS may assess.

Chose a firm you can reach after the Tax Season
It is to your benefit to choose a preparer whom you are able to contact all year round and who will respond to your needs. If the IRS needs any questions answered, you want to be able to have the assistance of your preparer right away. Because he is available all year, he will be able to answer the questions quickly and thus save you; and time is money.

Do you really know your Tax Preparer?
To establish that the preparer is trustworthy and competent, get references from former and existing clients of the preparer or from some other person whose judgment you trust.

Through the Better Business Bureau, the state’s Board of Accountancy for CPAs, the state’s bar association for attorneys ascertain whether the preparer has any questionable history. Determine that the preparer belongs to a professional organization that mandates its member’s participation in continuing education and holds him accountable to a code of ethics.

Since only an Enrolled Agent, a Certified Public Accountant, or a Tax Attorney may represent you before the IRS in matters including audits, collection action and appeals, it may be wise to choose one of these professionals as your preparer. When you receive that dreaded IRS Audit Letter, that preparer will be aware of the problem and can address a response more effectively.  In the first place, the fact that he prepared the return reduces the probability of your ever getting such a letter.

Ostensibly, your relationship with your preparer makes a great difference. Does he respect you regardless of your income or your station in life? Do you feel comfortable dealing with him and his staff?  Do you think he cares for you and your family and will apply the tax law so you may get the maximum the law permits?  Provided all other requirements are satisfied, he may be the preparer for you.

We are here to offer you our services. You may contact us at 212-481-7634 or you   may click on to our Frequently Asked Questions(FAQs).