Better Business Bureau Offers Advice On Tax Preparation

WALLINGFORD — If your New Year’s Resolution was to quit procrastinating, the Better Business Bureau suggests that you may want to begin by filing your tax forms early, or finding a professional to do the job for you.

If your tax return is routine, a national tax service may be for you. These chains maintain franchise offices all over the country, and their main advantage is convenience. During tax time, offices may be open nights, weekends, and on a drop-in, first-come, first-served basis. Each company has a set fee schedule with cost being determined by the number of forms and lines that are filed.

The BBB suggests that if you own a personal computer, you may consider using IRS e-file. Using your PC, modem and tax preparation software that offers the IRS e-file option, you can prepare and electronically file your tax return information from home. Upon receipt of the return information, IRS computers automatically check for errors or other missing information. Usually within 48 hours of electronic transmission, IRS acknowledges acceptance of the return.

If your return is complicated, you may want to hire an enrolled agent, certified public accountant (CPA) or a tax attorney. These tax preparers have more specialized training and, in case of an audit, may represent you before the Internal Revenue Service (IRS). Tax attorneys and CPAs also may be able to give advice on tax and financial planning. The IRS warns consumers not to be lured by companies that promise the “biggest refund” without even seeing your tax information. Fees should be based on the complexity of the return, never on the size of the tax savings or refund. Some preparers offer immediate payment of your return, for a fee. Keep in mind that this is a loan, often accompanied by high interest rates. This loan is known as a Refund Anticipation Loan. If you decide to accept this offer, make sure that you are aware of and accept all the terms. Read the fine print before signing any agreement.

No matter who prepares your tax return, it is still your responsibility. Don’t sign the return unless you are certain it is accurate. The IRS offers free tax assistance in local communities by IRS-trained volunteers, with specialized help available to address the concerns of the elderly. For the location and hours nearest you, call 800/TAX-1040, but remember to call early, before the last minute rush to file. Visit the IRS’s Web site at http://www.irs.ustreas.gov for more information.