How do you know if you can trust your tax preparer?

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Over the years we all heard the horror stories of tax preparers working for some well known tax preparation companies stealing the identities from the returns they prepared. Some tax preparers generate fantastic refunds, then vanish from the face of the earth on April 16^th. Some talk about tax exempt schemes that are just scams. When a tax preparer gets you a refund that seems too good to be true, this should erect a red flag!

About me

I decided to get into the business in 1989 when one such tax preparer did just that to my fiancée. My tax guy was really great because he was able to get a much bigger refund than anyone out there! I told her to go to him! She got a very big refund, but then she was audited. At the audit nearly all the deductions were disallowed. She had to pay back the refund with interest and penalties!

I was embarrassed and mad as heck.

Determined to try and make things right by her, I ordered every single tax publication the IRS had and I studied them. It took about eight months to do this. I then took some courses at H&R Block. I got her penalties lifted but I could do nothing about the fabricated deductions created by that charlatan. I decided to start a tax preparation business where people can get their taxes honestly prepared. So in 1990, WIN Tax Preparation was born! (WIN stands for Worldwide Information Network, a business created a few years earlier.) The rest is history! I am very proud of this achievement and the integrity I brought to the industry.

About my service

• I have twenty-one years experience preparing personal income tax.
• I have a PTIN number. (Preparer Tax Identification Number)
• I have References.
• I have trusted clients dating back to 1990!
• My fee structure is by form and activity only. An example of an activity is a single rental property or business.
• I answer all IRS notices for you, no charge.
• I provide tax advice year round, no charge.
• I will prepare an amended return for any return I prepare for no charge, if required.

To answer the question

How can you protect yourself from crooked and unqualified preparers?

• Be Suspicious: Are you assigned the same preparer every year, or are you assigned to someone new every few years. This is common when you deal with the popular larger firms and this exposes you to unnecessary risk. Large firm Tax preparation businesses have a high turnover of part time preparers. Do you really want to trust your personal information to them? There are recorded cases where these part time preparers conducted identity theft of their clients. Example 1, 2, 3. Scary, isn't it?

• Think ahead: Choose a preparer who is there for you all year round. Crooks tend to disappear around April 16^th.

• Require references: No references, no deal. Do his clients use him year after year? You must check him out.

• Experience: How long has he been preparing taxes?

• Form a relationship: Once you have found a honest preparer, stay with him. It is a marriage of trust so essential in this day and age. He is a person who knows more about you than almost anyone!

• Fee structure:  Some guys will charge you by the line, and this can add up. Crooks who prepare unlawful returns usually charge by a percentage of your refund. That is their incentive to create unlawful deductions, exclude income, and promote crazy schemes. Know his fee structure and ask his references about his fees. RED FLAG= If a fee is a percentage of your refund.

• PTIN: By law, every legitimate preparer must have a Preparer Tax Identification Number.

Last updated: 01/30/2011 12:22:27 PM