Evard Financial Advisors, PLLC

The Arizona Republic (Phoenix, AZ)

February 15, 2007

TAX TIME HELP: THINGS YOU SHOULD KNOW WHEN SEARCHING FOR A PREPARER

Author: Sonja Haller, The Arizona Republic

This is the year you finally graduate from a 1040EZ form. Or maybe you're just not happy with your tax preparer. Either way, you're on the hunt for a quality professional.

About 60 percent of taxpayers turn to a tax professional for help, the Internal Revenue Service reports. And it's important to find someone qualified and trustworthy as you are the one legally responsible should the IRS perform an audit.

Michelle Miller, 39, of Phoenix, had an uneasy feeling when her old tax preparer handed her tax forms to sign in 2005. The forms were completed four months after the April deadline, and Miller could never seem to get the tax preparer on the phone when she had questions and concerns.

She interviewed several tax professionals before finding someone in Cave Creek.

"What it came down to is a gut feeling. I thought, 'I know I can work with this person.' He was upfront with me. He didn't just tell me what I wanted to hear but what I needed to know," she said.

Her new tax preparer redid her taxes in 2005 and found errors and deductions she could take.

"Now when people say, 'Do you have a good tax guy?' I say, 'Yes, and you're going to love him too,' " she said. "I don't want to be stressed out about my taxes. No one should."

Ask around. Interview at least three or four tax professionals. Then the IRS and other Valley professionals offer these guidelines for narrowing the choices.

Ask how many years they've been in the business. Do they specialize in small business, personal tax preparation, real estate? How do they stay updated on the 500 to 1,000 tax code changes every year? What are their credentials? Do they possess other professional memberships or relevant affiliations?

Know thyself. Phoenix bookkeeper/accountant Lucinda Lintz had two different clients call the same tax professional the best and the worst. The reason was because one client wanted a black-and-white preparer; the other wanted someone more flexible when interpreting the codes. Either type, as long as they are not doing anything illegal, is fine. "You have to know what you prefer," Lintz said.

Ask for an estimate of fees. Be wary of any tax preparer who guarantees a refund before completing a return. If they offer immediate payment of returns, keep in mind this is a loan. Read all the fine print before signing any agreement. "And don't go to someone who charges fees as a percentage of your refund," said Michelle Evard, a Valley investment adviser. The IRS said a practitioner may not charge a percentage of your refund for preparing an original tax return.

Hire someone you will have immediate access to. Make sure you can get the person you interviewed on the phone.

Don't settle for someone who won't break down complicated matters into understandable terms. "You're disclosing your whole life to them. You have to make sure you're comfortable with them," Evard said.

Remember, you're in control. "If the person wants to do something that's going to keep you up at night, don't do it," Lintz said.