3 Signs of an Unprofessional Tax Preparer

Facing an IRS tax audit isn’t the most pleasant thing to do but what makes it worse is if taxpayers hire an unprofessional tax preparer.

In a recent survey conducted for the year of 2010, only 60 percent of the tax returns were handled correctly, leading to the conclusion that the rest made a number of errors that taxpayers cannot afford to do so now.

So, here are 3 signs that can help you avoid an unprofessional tax preparer:

#1: Lack of Credentials
One of the simplest ways by which you can verify whether or not a tax preparer is qualified or not is to check whether or not he or she has been assigned a Preparer Tax Identification Number (PTIN). If he doesn’t have one, hiring the individual wouldn’t be wise at all.

#2: Promises a Big Refund
It’s ridiculous to buy into the promises made by a tax preparer of a big refund especially if he or she hasn’t inspected your financial documents first. It is a clear sign that the tax preparer is running a clear scam by guaranteeing you the biggest refund possible, and you shouldn’t fall for it either.

#3: Preparer’s Fee is a Percentage of Your Tax Refund
Reputable firms that prepare taxes usually charge a flat rate based on the size and scope of the tax return. However, if the tax preparer’s fees is a percentage of your tax refund, then you can be sure that this is a scam as well. You can be sure that your finances could be mishandled so as to increase the refund amount in order to make more in terms of fees.