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Tips to choose the right tax preparation company

Tips to choose the right tax preparation company

It is estimated that half of the taxpayers in the country use a tax preparation service to file their taxes. If your income and expenses are straightforward, filing taxes is a simple exercise. However, if you have multiple incomes, expenses, and deductions, and you have to pay complex taxes, it is beneficial to take the help of professional services to help file your taxes. There are many small, mid-size, and large companies that do tax preparation services as a business.

Here are some guidelines to choose the right one for you:

  • PTIN is a must
    Any qualified person or service with a Preparer Tax Identification Number (PTIN) allotted by the IRS can help you with your tax returns. They can be individuals, attorneys, CPAs, enrolled agents, preparers who help only during tax season called “Annual Filing season program participants.”
  • Credibility
    PTINs can be obtained easily, therefore look for services that employ credentialed preparers like CPA, enrolled agents, and attorneys. Look for preparers who have completed programs like Accredited Tax Preparer certification so that you know that they are qualified to prepare your taxes.
  • Fees
    The National Society of Tax professionals says that tax prepares to charge at a rate of $138 per hour. Some could charge you based on the number of forms that you file. However, do not deal with anyone who promises a bigger tax refund or charges you based on the refund value.
  • Insist on e-filing
    IRS stipulates that every preparer who files more than ten taxes should do it digitally. If your preparer does not accept e-filing, it implies that his quantum of business is very low.
  • Accessibility
    Look for online reviews to see if the service is responsive even after-tax filing is done. They should answer your queries on tax refunds. Ensure that your preparer signs the tax form and discloses their PTIN number. Always physically check if the tax refund route has your bank account to prevent the scope of any fraudulent activity.

Based on the above parameters and guidelines, the top three tax preparer services in the country are as follows:

Jackson Hewitt Tax Service Inc
The company has experience of 35 years with about 6000 branches and franchises across the country. They can prepare your services within an hour, and you also need to pay once you get your tax refund. You can also receive a refund anticipation loan. The company offers tax debt relief and provides a Lifetime Accuracy Guarantee. They offer rebates for first-time customers. IRS approves the company as a continuing education provider. If you want to file the taxes on your own, they also have online software for that purpose, and you only pay for support from an expert.

H & R Block
The company has offices in all 50 states. For federal tax help, the charges are as low as $49 if you upload all the forms online. If you visit their offices and take help from tax preparers, charges begin from $69. They charge extra for state tax filing help. The fees will be deducted when you get the tax refund. They also help with the review of the previous year’s tax filing. The tax preparers have to go through multiple levels of certification and training before gaining employment.

Liberty Tax Service
The company has about 3500 offices across the country and is the third-largest tax preparation service in the country. They offer refunds if their tax preparation is inaccurate or any penalties levied on you for inaccurate tax filing. They offer loans on your tax refund within few days of tax filing. If you file your taxes online through Liberty, you get access to customer support and a 100% accuracy guarantee. They also offer a free double-check service if you have filed your taxes with any other company.