Choosing a Tax Preparer
We are once again entering tax filing season, during which you will file your 2023 tax information. Most likely, your current focus is on gathering all the necessary documentation for such things as income sources and related tax withholdings, retirement plan contributions, charitable giving … and the list goes on.
One very important decision you may be making this season is selecting a tax preparer. Here are some tips to help with this selection:
■ Be wary of tax preparers who claim they can obtain larger refunds than others or who claim they can always get you a refund.
■ Avoid tax preparers who base their fees on a percentage of the refund.
■ Use a reputable tax professional who signs the tax return and provides a copy.
■ Consider whether the individual or firm will be in business months or years after the return has been filed to answer questions about the tax return’s preparation.
■ Verify the preparer has an IRS Preparer Tax Identification Number (PTIN). Only a preparer who has a valid PTIN is authorized to prepare federal tax returns for compensation.
■ Check the preparers’ credentials. Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collections and appeals.
■ Find out if the return preparer is affiliated with a professional organization that provides its members with continuing education and other resources, and holds the preparer to a code of ethics.
■ Visit irs.gov/tax-professionals/choosing-a-tax-professional for more information about choosing a tax return preparer.
Recognizing that investments and taxes go hand in hand, your certified financial planner can help this tax season go more smoothly for you by:
■ Opening a last-minute IRA or depositing an IRA contribution for the 2023 tax year. The deadline for 2023 contributions to Traditional and Roth IRAs is through the tax filing deadline (without extension).
■ Collaborating with you and your tax adviser regarding:
√ How tax law changes may impact your investments or retirement accounts;
√ How future changes to your portfolio may impact your tax situation;
√ The need to make any modifications to tax withholding on your IRA distributions or other investment income.
Filing taxes can be a complex process. Don’t hesitate to enlist the help of professional advisers for better peace of mind. Hopefully the tips above will help make this tax season go a bit more easily for you.
Wendy Bennett is a senior financial adviser at Bennett Associates Wealth Management in Butler.
Bennett Associates is a registered investment adviser and does not provide any legal, accounting or tax advice. The material prepared is the opinion of the author and for informational purposes.
