Story Published:
Jan 5, 2009 at 8:50 PM CST
Story Updated:
Jan 5, 2009 at 10:16 PM CST
SPRINGFIELD -- When it comes to filing your tax return, a small mistake can cost you big. That's why the Internal Revenue Service warns taxpayers to chose their tax preparers carefully.
Sandra Byrd of Missouri State University's Accounting Department says taxpayers should make sure a preparer is a certified public accountant or an enrolled agent who is certified by the IRS. Also, he or she should have had continuing education to keep up to date with ever-changing tax codes.
"You need to ask. It's just like with an attorney or doctor; you need to ask," said Byrd.
Be cautious of a tax return preparer who claims he or she can obtain larger refunds than others. And avoid one who offers to cut you a check for your refund right away. That's usually called a tax refund anticipation loan.
"They're loaning you money. They're not really filing your tax returns," Byrd said.
The IRS and Byrd agree you should avoid a preparer who bases his or her fees on a percentage of the refund.
"They have a tendency to try to have a high refund and then you might end up owing it back."
Also, you should avoid a preparer who won't give you an idea of what he or she charges.
"At least ask them what they're billing per hour and if they have an estimate, or if they're going to bill so much per form."
Most importantly, check your return before signing it.
"When you sign that return, you're responsible for it."
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