PORT ST. LUCIE, Fla. -- Here's a question that might get your heart racing: Have you started your taxes yet?
You still have more than three months to get them done but how do you find the right tax preparer?
Anyone can call themselves a tax preparer, but you need to do some research on the person to make sure they are filing your taxes correctly.
The consequences of choosing the wrong one can be problematic. Any mistakes made on your tax return could come back to haunt you, not the preparer. If you are audited by the Internal Revenue Service, you will have to pay the additional tax, plus any penalties and interest.
The IRS compiled ten tips on how you can find the right preparer so that you can get your maximum refund without worry:
1.) Check the Preparer’s Qualifications. Use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This tool helps taxpayers find a tax return preparer with specific qualifications. The directory is a searchable and sortable listing of preparers.
2.) Check the Preparer’s History. Ask the Better Business Bureau about the preparer. Check for disciplinary actions and the license status for credentialed preparers. For CPAs, check with the State Board of Accountancy. For attorneys, check with the State Bar Association. For Enrolled Agents, go to the verify enrolled agent status page on IRS.gov or check the directory.
3.) Ask about Service Fees. Avoid preparers who base fees on a percentage of the refund or who boast bigger refunds than their competition. When asking about a preparer’s services and fees, don’t give them tax documents, Social Security numbers or other information.
4.) Ask to E-File. Taxpayers should make sure their preparer offers IRS e-file. The quickest way for taxpayers to get their refund is to electronically file their federal tax return and use direct deposit.
5.) Make Sure the Preparer is Available. Taxpayers may want to contact their preparer after this year’s April 17 due date. Avoid fly-by-night preparers.
6.) Provide Records and Receipts. Good preparers will ask to see a taxpayer’s records and receipts. They will ask questions to figure things like the total income, tax deductions and credits.
7.) Never Sign a Blank Return. Don’t use a tax preparer who asks a taxpayer to sign a blank tax form.
8.) Review Before Signing. Before signing a tax return, review it. Ask questions if something is not clear. Taxpayers should feel comfortable with the accuracy of their return before they sign it. They should also make sure that their refund goes directly to them – not to the preparer’s bank account. Review the routing and bank account number on the completed return. The preparer should give you a copy of the completed tax return.
9.) Ensure the Preparer Signs and Includes Their PTIN. All paid tax preparers must have a Preparer Tax Identification Number. By law, paid preparers must sign returns and include their PTIN.
10.) Report Abusive Tax Preparers to the IRS. Most tax return preparers are honest and provide great service to their clients. However, some preparers are dishonest. Report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If a taxpayer suspects a tax preparer filed or changed their return without the taxpayer’s consent, they should file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit.
Also, remember that thieves are watching your mailbox. Identity theft can be common this time of year with W-2 forms floating about the mail stream.
If you are planning to do your taxes by mail, there is a really helpful tool by the US Postal Service called Informed Delivery. You can sign up on their website and the service is free of charge.
The service allows you to get a digital snap-shot of any mail that's on its way to your house. So, if crooks steal anything, you will know what's missing.
This also comes in mobile app form through your smartphone, so you can track mail when you're out of town.
According to credit reporting agency Experian, employment and tax-related fraud is the second most common type of identity theft.
There were more than 82,000 reported cases in 2017.
Unfortunately, Florida doesn't stack up well to the rest of the country. Experian says Florida had the second highest rate per-capita of reported identity thefts.
