Should You Hire a Tax Preparer?

The federal income tax codes are complicated and require professional training to thoroughly understand and apply. But that doesn’t necessarily mean your own tax return will be too complicated for you to do yourself.

Depending on your income level and expenses and the number of deductions and credits you can claim, your return might be quick and easy. This saves you money. On the other hand, mistakes can be costly in terms of additional taxes owed and/or penalties. Before deciding whether to hire an outside tax preparer, you should consider the following:

• The tax preparation industry is not regulated in Florida, and professional preparation services are not required to be licensed or pass a background check.
• Many tax returns are not complex and require only one or two simple forms. Call the IRS at 1-800-829-1040 and ask about free or minimum-cost assistance programs.
• Look into the United Way’s Volunteer Income Tax Assistance (VITA) program. If you make $50,000 per year or less, it’s free. Go to: VITA or call 561-375-6600.
• If you need to use a tax preparer, shop around first. Get an estimate of costs up front. Ask about your preparer’s qualifications and experience.
• Be wary of preparers who promise a big refund or base their fee on the amount of your refund. You, not the preparer, are ultimately responsible for your tax return and any monies owed.
• Be cautious about “refund anticipation loans.” These loans are secured based upon your anticipated tax refund and may carry hefty fees and/or high interest rates. By using the IRS’s e-file program, tax refunds can be processed in as little as 10 days.

For more information, call Palm Beach County Consumer Affairs at 561-712-6600 (Boca/Delray 888-852-7362 toll free) or visit Consumer Affairs to see if other consumers have filed complaints against the tax preparer you are considering.