Your social security number.
Your bank account number.
Your money.
When choosing a tax preparer, it is important to choose someone you can rely on. You have to trust that they will not only accurately determine how much you owe or receive, but that they will also safely store your information, advise you properly, and avoid mistakes that can cost you money. Not only do you want someone who can get you the best tax results, but you need someone who does it the right way, the first time. Why? Because even if a preparer made a mistake or put false information on your return, you are still responsible for the taxes that you didn't know you owed. But how do you know who to trust?
Qualifications
Authorized tax preparers must have an IRS Preparer Tax Identification Number (PTIN) in order to prepare federal tax returns on your behalf.
NOTE: No education is required to obtain a PTIN!
Just because a person is authorized to prepare your federal tax return does not mean that they have the knowledge to do so to your best advantage. If they can't back up their qualifications with something more than a PTIN - not even your sister's friend's brother-in-law's nephew (twice removed). Almost anyone can get a PTIN, so don't trust just "anyone".
WARNING: A PTIN is required for anyone who accepts payment for preparing tax returns. If you pay someone to prepare your return and they do not record their name and PTIN on the tax return report them to the IRS.
While a CPA is a commonly used source of tax preparation, there is no guarantee they actually know anything at all about taxation. While a CPA has vast knowledge of finance and accounting, their degree path requires no time investment in tax law. Even worse, CPA's have a reputation for being pricey and expensive, and many of them charge extra for tax preparation because it is outside of their usual work load. An attorney is an even more expensive option, and while they will probably accurately prepare your return, they will charge you a king's ransom for their time. And while tax specialists do exist in both the CPA and Attorney communities, you'll pay specialist prices.
WHY PELICAN? Ken Eubanks worked under an Enrolled Agent from 2012 - 2018, and has been a licensed EA since 2017.
That leaves us with the title of Enrolled Agent (EA). This position is not as well-known as CPA or attorney, but an EA is absolutely qualified to prepare all types of tax returns and to represent you in case you are audited. EA's receive their license as tax experts directly from the IRS, and they are required to complete significant re-training on both new and old tax matters every year in order to maintain their licensure.
Fees
A big refund should not equal a big tax prep fee! That opens all kinds of scary doors to potential fraudulent activity that the tax preparer might use to boost your refund illegally. In fact, the IRS considers that very practice, which they call a "contingent fee", to be against their code of ethics and morals for tax preparers, and it is strictly prohibited. Look for a preparer that has a reliable price that is not dependent on your refund or tax owed.
WHY PELICAN? Our prices are based on the type of return and what goes onto your return, not your return results.
E-file vs. Paper File
Make sure your tax preparer provides e-filing, as it is the fastest way to submit your taxes. E-filing also quickly alerts preparers if the return is rejected by the IRS and requires corrections or more serious interference, such as with identity theft or two people claiming the same dependent.
That is not something you'd want to find out weeks or months after filing your tax return!
WHY PELICAN? Pelican always e-files your return when possible!
Sometimes correspondence cannot be e-filed (most amended returns, for example), and must be mailed to the IRS. In this case, we do provide addressed envelopes for your convenience.
Availability
What happens if you need a new copy of your tax return? Or if the IRS sends you a letter saying that your tax return had a problem? You need a tax preparer who will be there to help you when you need it, year-round.
WHY PELICAN? We have a brick-and-mortar office that is open year-round. Ask for an after-hours appointment if you need one!
Records
In order to accurately prepare your tax return, a preparer will have to see some records and, sometimes, receipts. Don't trust a tax preparer that doesn't ask to see your W2! You should be able to ask your tax preparer questions about your tax return, and you should expect your tax preparer to have questions for you. Some of your answers will require documented proof, such as claiming children as dependents, and others you will be able to just explain your situation.
WHY PELICAN? As an EA, Kenny knows what questions to ask and what deductions you can take. He has seen thousands of tax returns - he knows what is needed and what isn't.
Reviewing the Return
All taxpayers are human, and as such you might forget to tell us about that cozy little nest egg building significant (and taxable) interest. Tax preparers can also make errors on a tax return that seem daunting and expensive. Don't panic! A good tax preparer can fix these issues easily, and without significant expense. A bad one will pretend like there's no error, try to make up a sketchy explanation, or just refuse to communicate with you. Even worse, some tax preparers are scam artists, waiting for an unwitting client to deceive and take advantage of you by making promises of large refunds and secret, hidden deductions.
WHY PELICAN? If Pelican makes an error on your tax return, we will make it right.
You should look at the tax return before you sign it, especially if you are getting your refund direct deposited, but if you don't and realize later that there is an error (or some potential treachery afoot!), you will want a tax preparer who will be there to help you.
This list is adapted from IRS Tax Tips
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