Hiring a Tax Preparation Company
5/1/2008
According to a Better Business Bureau (BBB) analysis, nearly one-third (32.5 percent) of complaints against tax preparation companies across Canada and the U.S. allege that the preparer made an error or mistake in the tax return, often requiring the consumer to pay fines or added fees to rectify the problem.
“Consumers looking for trustworthy help filing their taxes should not wait until the last minute – they need to take their time, shop around and find a preparer who is both qualified and has a strong track record of providing customer service,” said Joe Amort, President of BBB of Windsor and Southwestern Ontario.
BBB encourages consumers to use the same caution in selecting tax preparation help that they would use in selecting other professional services, such as those provided by doctors or lawyers. BBB offers the following advice when searching for help with taxes:
Ask around. Get referrals from friends and family on who they use, and check the BBB Reliability Report on tax preparation services free-of-charge.
Look for credentials. Ideally, tax preparers should either be a certified public accountant or a tax lawyer. Also, find out if the preparer is affiliated with a professional organization that holds its members to a code of ethics.
Don’t fall for the promise of a big refund. Be wary of any tax preparation service that promises larger refunds than the competition, and avoid any tax preparers who base their fee on a percentage of the amount of the refund.
Think about accessibility. Many tax preparation services only set up shop for the months leading up to April 15. In case of errors, or in case of an audit, consumers and businesses need to be able to contact their tax preparer throughout the year.
Read the contract and know what you’re paying for. Consumers must read tax preparation service contracts closely to ensure they understand issues such as, how much it is going to cost for the service, how the cost will be affected if preparation is more complicated and time consuming than expected, and whether the tax preparer will represent the consumer in case of an audit.
For more trustworthy advice from BBB, visit www.bbb.org