How to choose a tax preparer

Choose your preparer wisely. Ultimately the taxpayer is responsible for what's on their tax return even if it was prepared by someone else. Here are some helpful hints to finding a preparer.

Reputation - Ask family or friends. Compile a list of recommended preparers and contact them.

Guidance - Your professional should not only have communication skills to explain different parts of the tax code but should also teach you a little as well. What new changes in the tax law will affect you? Ask their opinions on tax strategies and financial planning.

Integrity - Your preparer should stand behind their work by signing their name to the tax return and providing you a copy. Reputable preparers will request to see your receipts and ask probing questions. They have your best interests in mind and are working with you to avoid penalties, additional taxes, and IRS examinations. A paid preparer is now required by law to sign the return and include their PTIN. The preparer should also give you a copy of the return.

Why e-file?

In 2010, 99 million taxpayers e-filed their return last year. That's an increase of 10% from a year ago and represents 70% of all individual taxpayers. Here's why people e-file:

• Faster Refunds – with direct deposit, you can receive your refund in as little as 8 days.
• Greater Accuracy – error rate for paper returns is 20%; 1% for e-filed returns.
• Secure and confidential submission – there has never been an IRS e-file security breach
• File now, pay later – e-file does not mean you have to pay a balance due. You can postpone that until April 15
• Quick confirmation – receipt of your e-filed tax return is within 24 hours
• Convenience - accessible 24 hours a day, 7 days a week
• Most importantly, no paper return to mail

Starting January 1, 2011 most tax return preparers must be authorized IRS e-file providers so they can transmit tax returns electronically.

For more information, refer to the IRS e-file resource.