How to Choose a Tax Preparer in Killeen, TX

The IRS says that each year some taxpayers are hurt financially because they choose the wrong tax return preparer. With more than half of taxpayers using a paid preparer, a few minutes spent choosing well is worth it.

This guide collects the IRS's own advice, the red flags it names, and the questions worth asking. We are a tax preparer ourselves, so read it with that in mind; the advice comes from the IRS and the Taxpayer Advocate Service, and it applies to us exactly as it applies to anyone else.

What the IRS tells taxpayers to look for

The IRS's quick tips for picking a tax pro fit on an index card:

• Choose a preparer who is available after filing season, in case questions come up later
• Avoid preparers who base their fees on a percentage of the refund
• Expect a good preparer to ask to see your records and receipts
• Check the preparer's history for complaints or disciplinary actions, and ask about their education and training
• Always review the return before signing it, and never sign a blank or incomplete return
• Make sure any refund goes directly into your own bank account

Red flags the IRS names

The IRS calls out a few warning signs directly: not signing a return, promising an unusually large refund, and charging fees based on the size of the refund. A preparer who prepares a return but refuses to sign it or include a PTIN is what the IRS calls a ghost preparer.

Its fact sheet on preparers promising quick cash adds more: insisting on cash payment without providing a receipt, claiming to know loopholes or special refund tricks, and e-filing a return from a pay stub instead of the official wage statement from the employer. It also warns never to share access to your IRS online account or to an identity service such as ID.me, even with a preparer. And if a cash advance, fast refund or instant refund is really a loan with fees and interest, the IRS lists failing to explain that as misconduct.

Who prepares your return

For a taxpayer choosing a preparer, the IRS and the Taxpayer Advocate Service give a practical check: talk to your preparer and ask about their qualifications, education and training.

Here is where we stand. Jessica Moreno, who holds an M.S. in Accountancy and an MBA in Business Analytics, prepares the returns. We prepare returns and keep books; we do not act for clients before the IRS. If you get a notice from the IRS, call us: we will help you understand what it says and tell you if you need someone with IRS representation rights. The Taxpayer Bill of Rights says every taxpayer has the right to retain an authorized representative of their choice.

Questions worth asking any preparer

Ask these before you hand over a single document. The Taxpayer Advocate Service adds that a clear estimate, preferably in writing, and a complete copy of your return are worth asking for from the start:

• Who actually prepares my return, and what is their education and training?
• What is included in the fee, and can I have the estimate in writing?
• Will you sign the return and include your PTIN?
• Will I review the finished return before it is filed, and get a complete copy?
• Where does my refund go?
• Are you available after filing season if a question or a notice comes up?
• If the IRS writes to me, what will you do, and what will you not do?

How we work

Jessica prepares the returns. Individual returns start at $250, more complex returns are quoted on the free call, and nothing paid begins until you have that quote; paid work is covered by a written engagement letter. We prepare the return, walk you through the result, and file when you are ready, and after filing season we still answer the phone. Our tax preparation services page has the full list of what we prepare.

The IRS also suggests checking the Better Business Bureau for information about a preparer. We keep a public profile there, and you can read about Joel, Jessica and how the practice started before you call.

Free options are a fair choice too

Choosing well can also mean choosing free. The IRS's Volunteer Income Tax Assistance program prepares basic returns at no charge for people who qualify, and the IRS notes that a VITA site refers returns it finds out of scope to a paid preparer. Around Killeen, United Way of Central Texas runs local VITA sites during the season, and our guide to tax preparation in Killeen has the details. Eligible service members and their families also have MilTax from Military OneSource, covered in our guide to military tax prep near Fort Hood. If you only need a software login, we will say so.

If something goes wrong

If a preparer's conduct worries you, the IRS explains how to report a tax return preparer, and its page is listed below. The Taxpayer Advocate Service, an independent organization within the IRS, helps taxpayers who qualify for its assistance and protects their rights, and Low Income Taxpayer Clinics, which operate independently of both, represent individuals whose income is below a certain level. Whoever you choose, keep a complete copy of your return for your records, which is the Taxpayer Advocate Service's advice as well.