The IRS says the 60% of taxpayers file a return signed by a preparer. I was recently interviewed by Consumer Report’s Money Adviser for an article about the importance of hiring a good tax preparer. These days, having a good number cruncher can help you not only minimize your tax liability, but also keep you out of trouble with the IRS as they are stepping up enforcement.

Some things all taxpayers should keep in mind when they’re having their tax returns prepared this year:

• Not all CPAs specialize in taxes and many do not prepare individual tax returns.
• If you use an accounting firm, you should find out who is actually going to be working on your return. It could be a staffer who isn’t licensed or a junior CPA - or even someone in another country, if it’s a big company that outsources data-entry tasks and income-tax preparation.
• Accounting firms will generally match the complexity of the return to the skills of the preparer, but you should still ask whether someone senior will review your return before it’s submitted to the IRS and your state.

Many taxpayers are going the do-it-yourself route these days, with tax preparation tools like TurboTax. I strongly urge people with anything more than a straight W-2 (including anyone with even the smallest business “Schedule C”) to be aware of the limitations of these software programs.

In other words, don’t be penny wise and pound foolish - Don’t do your taxes yourself unless you are a straight W-2 wage earner that takes the Standard Deductions (someone who doesn’t itemize or have any unreimbursed employee business expenses). This is good advice for anyone who wants to avoid IRS problems.

How do you find a good tax preparer? Many people ask around and find their accountants by word-of-mouth recommendations. You can also go online to the American Institute of Certified Public Accountants. Under “Consumer Information”, click on “Find a CPA.” There you can also search for a list of a state’s licensing board or check your state’s board to see if you CPA’s credentials are current.

More Tax Help, IRS News and Tax Relief Tips:

1. We’ve Expanded to Help More Taxpayers Resolve Their IRS Tax Problems!
2. What the IRS May Not Tell You About Payment Plans
3. Talk to the Tax Expert - On the Mind Your Bizness Show
4. Get the IRS Tax Benefits You’re Entitled to and Avoid Tax Penalties by Documenting Your Business Expenses
5. KLOS Tax Tip #44: Individuals Get a Tax Break - But Get Tax Help if You Owe Back Taxes!

Tags: filing tax returns, IRS help, IRS problem solver, irs problems, IRS tax problems, Michael Rozbruch, tax advice, tax expert, tax help, tax preparation, tax relief, tax resolution, tax resolution expert, tax resolution services, tax returns, Tax Tips

This entry was posted on Friday, March 13th, 2009 at 4:01 pm and is filed under Tax news and tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.