Lately, it seems like there is a news story every week about problems with tax returns.  One of the largest providers of tax software to home users, as well as professional accounting firms, had numerous issues correctly completing Minnesota tax returns.  The largest commercial tax preparer in the country had tens of thousands of returns prepared incorrectly, causing delays in their customers getting their refunds.  Both of these happened within the last two weeks, and point to an unsettling problem: tax preparers expecting their software to be smarter than they are.

More disturbing though are the stories of tax preparers cheating and defrauding their clients.  These stories are usually far less publicized – we learn about them through professional publications.  A tax attorney in New York recommended fraudulent deductions to clients – to the tune of $7 billion.  A former tax partner in a national accounting firm was arrested for stealing payments his clients made to his firm.  Numerous preparers have been arrested for claiming fraudulent deductions on client’s returns and pocketing the additional refunds for themselves.

Given all this, choosing a competent, trustworthy tax professional is crucial to keeping you in compliance with the law, and getting you the most accurate tax return.  Below are a few steps to take when choosing a preparer.

• Get referrals from friends and family whose opinions you value.
• Be leery of anyone who promises outcomes that seem too good to be true.
• Check with the Board of Accountancy in your state to see if the preparer you are considering is currently licensed, and if they have had any disciplinary action taken against them.
• Never be afraid to get a second opinion if you think something doesn’t seem right.
• Use a search engine, like Google, to see if anyone has posted reviews or comments about the firm online.

As always, we’re here to help, as we have been for over 30 years.