(From Marx Brother’s Duck Soup)
The new Secretary of War Chicolini( Marx brother Chico) is discussing the funding of the war:
Minister of Finance: Something must be done! War would
mean a prohibitive increase in our taxes.
Chicolini: Hey, I got an uncle lives in Taxes.”
Minister of Finance: No, I’m talking about taxes – money,
dollars.
Chicolini: Dollas! There’s-a where my uncle
lives. Dollas, Taxes!
People usually stress about taxes in the first quarter of every year. What a person doesn’t need is a negligent or dishonest tax preparer. Brian O’Connell wrote an article, 5 Signs You’ve Got a Lousy Tax Preparer which offered some good advice. However, the points he raised really seemed to point to a dishonest tax preparer, as opposed to a lousy one. Here are the points:
- Your preparer promises a big tax refund: This is comical. Why would a tax preparer proclaim a big refund especially before seeing the documents unless they are going to “create” numbers?
- Your preparer doesn’t have proper credentials: The IRS has really buckled down on the education and registration of tax preparers. This of course doesn’t apply to CPAs where we have our own standards to adhere to.
- The tax preparer requires that your refund be deposited into their bank: This is a clear red flag to run. We never take our client’s refunds in any circumstance.
- The preparer’s fee is based on a percentage of your refund: This is another ethical violation for CPAs. Never take the bait.
Taxes are not something to gamble with. Make sure you understand your tax return. Expecially understand where the numbers come from. Make sure your preparer is not dreaming up numbers. Discuss any advice given here with your tax advisor before making any decisions.
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