We’re in the heart of tax season. Tax preparation companies are probably popping up in strip malls all over your town. While many of them offer a useful service and do their job well, some may be spreading lies just to get your business. Do these sound familiar?
You can get your tax refund immediately. Is this true? Not really. You’re actually getting a Refund Anticipation Loan, or RAL. They’re giving you a short-term loan based on what you expect to get back from Uncle Sam. The problem is that loan typically comes with hefty interest, which really doesn’t make sense because if you file your taxes electronically often you’ll get your money in a matter of days.
I can get you a bigger refund. Theoretically every tax preparer should be getting you the same amount of money. If a tax preparer promises to get your more money, beware. They may be falsifying your tax returns which is dangerous since no matter who prepares your tax documents– you are ultimately responsible for what they say.
There are some steps you can take before hiring a tax preparer in order to ensure you’re getting a good one.
* Ask for credentials or references. Talk to people who have used them before and see what they have to say.
* Do some digging with the Better Business Bureau. Check for any complaints that have been issued against this tax preparer.
* Find out if they’re a certified public accountant. You’ll want someone who knows exactly what they’re doing to handle your paperwork.
* Make sure you can contact them year-around. If there is a problem after tax season, you don’t want to be stuck with a tax preparer who only has an office a few months out of the year. Make sure you get their contact information.