What to know when choosing a tax preparer

H&R Block: 6 out of 10 taxpayers use professionals

SAN ANTONIO – With tax season in full swing, taxpayers will be searching for help filing their returns.

According to H&R Block, six of 10 taxpayers pay someone else to prepare their taxes.

“I had always done it myself and when I bought a home I figured I needed someone I could trust,” taxpayer Diane Canion said.

Canion used the same tax preparer for several years and felt confident that things were being done right. Then she was audited for her 2012 return and found that she owed the Internal Revenue Service about $2,700.

“Ultimately, the individual, the taxpayer themselves, are responsible for the return,” IRS Supervisory Special Agent Troy Caldron said.

The IRS recommends the following when choosing a tax preparer:

  • Avoid preparers who charge a fee based on a percentage of your refund or promise you a larger refund than others.
  • Search for a preparer who will ask to see your records and receipts. They’ll ask questions to determine your total income, deductions, tax credits and other concerns.
  • Always make sure that your refund is sent directly to you or deposited into your bank account. Do not allow your refund to be deposited into the preparer’s bank account.
  • Never sign a blank return or use a preparer who asks you to do so. Also be on the lookout for incomplete returns.
  • Review your return before signing it and ask questions if anything is not clear. Your signature, whether electronic or ink, indicates under penalty of perjury that everything on the return is true and accurate.
  • Make sure your preparer signs the return and includes his or her Preparer Tax Identification Number, also known as a PTIN.
  • If something doesn't feel right or if you are uncomfortable for any reason, find another tax preparer with whom you are comfortable.

The U.S. Department of Justice Tax Division and the IRS also have a joint website that lists injunctions against fraudulent tax return preparers and tax-fraud promoters.

Injunctions bar a person or business from engaging in specified misconduct or from preparing tax returns for others, according to the site.

Canion’s audit was forgiven after she wrote to the IRS, but then her 2013 return was also flagged for $2,100.

“I can’t believe it’s happening again. I don’t make that much money,” Canion said.

This time she’s expected to pay up and doesn’t want others to find themselves in a similar situation.

“Find somebody that’s reputable,” Canion said. “I’m still looking for someone to do my taxes, apparently.”

Canion told the Defenders that she’s filing an official complaint about her preparer to the IRS, which the agency recommends in situations like hers.

People in and around the San Antonio area who suspect fraudulent tax activity can call the IRS San Antonio Field Office at 210-841-8550 or click here.

The IRS investigates nearly 300 abusive return preparers annually. Those convicted are often sentenced to years behind bars and thousands of dollars in fines and restitution.

Digital journalist RJ Marquez put together this story about finding help and avoiding identity theft during tax season.