With the beginning of a new year, it's time to gather important documents, receipts, and forms for filing your taxes. If you are looking for someone to help you with tax preparation, it's important to choose this person carefully! Some "tax preparers" may take advantage of you and file a fraudulent tax return in your name. If the return is flagged by the Internal Revenue Service, YOU are the one held accountable, not the person who filed the fraudulent return.

According to the IRS, "Return Preparer Fraud generally involves tax return preparers who prepare and file false income tax returns based on inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients" or they "may manipulate your income figures to fraudulently obtain tax credits, such as the Earned Income Tax Credit." In many cases you, the client, may have no knowledge that a fraudulent claim has been filed in your name. If the IRS detects the false return, however, you will be the one who has to pay the additional taxes, interest, and penalties. 

Most tax preparers provide excellent service, and the IRS supports them with an active training program and the investigation and prosecution of unscrupulous return preparers. Nevertheless, it is still important to choose your tax preparer with the same care as you would choose your doctor or lawyer.

Here are some friendly tips when choosing someone to prepare your taxes:

• Be cautious about tax preparers who claim they can obtain larger refunds than other preparers.
• Be wary about tax preparers who do not ask questions, or ask for your paperwork. Reputable preparers will ask to see your receipts, W2s for jobs held, and will ask you multiple questions to determine your qualifications for expenses, deductions, and other items. By doing so, they are trying to help you avoid penalties, interest, or additional taxes that could result from an IRS examination.
• Avoid preparers who base their fee on a percentage of the amount of the refund.
• Use a reputable tax professional who signs your tax return and provides you with a copy for your records.
• Consider whether the individual or firm will be around to answer questions about the preparation of your tax return months, or even years after the return has been filed.
• Review your return before you sign it and ask questions on entries you don't understand. 
• Never sign a blank tax form.
• Find out the person’s credentials and look for the preparer's tax id number (PTIN). Only attorneys, certified public accountants (CPAs), and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection, and appeals. Other return preparers may only represent taxpayers for audits of returns they actually prepared.
• Find out if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and holds them to a code of ethics.
• Ask questions. Do you know anyone who has used the tax professional before? Were they satisfied with the service they received? 

Remember, the bottom line is this: no matter who prepares your tax return, you, the taxpayer, are ultimately responsible for all of the information on your tax return. Choose your tax preparer wisely!

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