What Tax Preparers Don't Want You To Know

For most tax season is one of the best times of the year. However, we want you to keep in mind things tax preparers don't want you to know when you decide to use their services.

Ø  I am not prepared to prepare your taxes

All tax preparers are required to have a Preparer Tax Identification Number (PTIN) issued by the IRS before December 31 of every year. This PTIN is not an indicator that the tax preparer is a tax expert, rather, required by the IRS to be registered with the IRS to prepare tax returns for compensation. All tax preparers are not educationally experienced in preparing taxes. 

Ø  CPAs are not all tax experts

Reality is most CPAs are actually auditors with little to not experience in taxes, specifically personal taxes. Make sure you match expertise with your needs.

Ø  I did not prepare your return

Most large corporations use a tiered tax preparation system. Meaning, a lower-end tax preparer inputs your information and a manager reviews your return before submitting it to the IRS. Although this is a check process, which is the best practice, it will not guarantee the manager or reviewer will catch any mistakes made by the preparer. Keep in mind to that some tax preparer outsource returns left with them. This is something you want to ask your preparer.

Ø  I conservatively prepare returns 

Because of federal tax codes and regulations preparing a return can sometimes be over complex for a tax preparer. Therefore, instead of researching and applying potential advantages, most tax preparers apply general tax rules, which is on the surface; like over-the-counter tax programs. Some prepares to this to reduce your odds of getting a tax notice with you having a higher tax liability. To get the most benefits from the complexities of the tax code, you must be willing to pay the fees necessary for a preparer to research to get a worthy conclusion. This is necessary when you keep in mind that wasting time and 

money trying to save a few bucks versus hundreds or thousands of dollars.

Ø  I am afraid to look more deeply into your situation, even if it saves you money

Understand that time is money and most tax preparers may fear giving you a big bill for it, in fear you may not pay or complain. There is a lot of opportunity that exists in itemizing deductions for a more advantageous conclusion, which the cost it worth it. Make sure your preparer knows you want him or her to look for opportunities of tax saving and that you are willing to pay for it. 

Ø  I cannot give you a bunch of tax credits

Preparers do know how to get you tax credits and some over that you may not qualify for. Be aware that if your tax preparer offers to get you a bunch of tax credits, especially those you know you do not qualify for--run in the opposite direction-- an audit is soon to come following those credits.

Always remember that paying a business to prepare your taxes is simple. Finding the right business to prepare your taxes isn't. Make sure you thoroughly understand your preparer's competence and experience (and are willing to pay for it) so you aren't leaving money on the table come April 17, 2018.

Website: www.gallowaytax.com
Email: gallowaytax@gmail.com
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