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Smart Money: Choosing a tax preparer

Financial adviser Chris Harper gives tips on how to choose right professional to prepare your taxes.

GRAND RAPIDS, Mich. — It's only December but it's important to start thinking about tax season and choosing the right professional to prepare your taxes. 

Chris Harper, an Instructor of Accounting at Grand Valley State University and Senior Manager with Hungerford Nichols discusses tips on choosing your tax preparer.

Why is this relevant in December?

  • Tax return preparation is just one part of the picture.
  • Planning is critical for legally minimizing your tax liability.
  • A tax professional can advise you regarding last-minute strategies for the 2019 tax year.

Credentials

Integrity

  • Research the preparer’s history with the Better Business Bureau.
  • Verify the license status of a credentialed preparer.
  • Investigate your preparer for disciplinary actions.
  • CPAs: State Board of Accountancy
  • Attorneys: State Bar Association
  • Enrolled Agents: www.IRS.gov
  • Ask for referrals from trusted acquaintances.
  • Even a simple inquiry using an Internet search engine could reveal critical information.
  • Competent and ethical professionals will ask for records and receipts to ensure they prepare a complete and accurate tax return.

Accessibility

  • Tax authorities may contact taxpayers to request additional information after a tax return has been filed.
  • Ensure that your tax preparer will be available after April for issues that arise after the filing deadline.
  • Is your tax professional available for tax planning and other consulting services that add value beyond simply filing a tax return?

Fees

  • Obtain an understanding of fees before engaging a tax preparer.
  • Avoid preparers who base fees on a percentage of the refund.

Cautious Skepticism

  • Taxpayers are responsible for the return they file even if someone else prepares the return!
  • Most preparers are honest, but some unscrupulous preparers take advantage of people.
  • Avoid preparers who claim exaggerated refunds or charge a fee that is contingent on your tax refund.
  • Be very skeptical if your tax return results seem too good to be true.
  • Never sign a blank tax return.

If you're in need of more financial and tax guidance, check out the advisers at Hungerford Nichols.

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