Newswise — A recent survey conducted by NerdWallet and Harris Poll reveals something surprising about millennial taxpayers — this generation has more anxiety about filing their returns than their parents.
Eighty percent of all 18- to 34-year-olds surveyed reported concerns such as “making a mistake, not getting a full refund or paying too much,” reports NerdWallet, “compared with 60 percent of adults ages 55 and older.”
The simple answer would seem to be: Hire a professional.
“Each year, about 60 percent of taxpayers use professionals to prepare their returns,” says Dennis G. Raible, CPA, retired IRS Revenue Agent and visiting professor of accounting at Saint Joseph’s University. Yet, less than a third of millennials look to this option — perhaps out of fear.
“You are entrusting your preparer with private financial information that needs to be protected and kept private,” says Raible, who currently works as partner in a New Jersey CPA firm. “It’s important to choose the right professional.”
When choosing a tax preparer, here are Raible’s top six things to consider:
1.Make sure the preparer has an IRS Preparer Tax Identification Number (PTIN) — all paid preparers are required to register with the IRS and include there is number on all tax returns that they prepare.
2.Check preparer's qualifications and professional credentials — CPAs, enrolled agents and attorneys must keep up-to-date on tax matters by taking continuing professional education courses. New laws, like the Affordable Care Act, are complex. The IRS has a searchable and sortable directory of federal tax return preparers with credentials.
3.Inquire about the fee — if a preparer bases fees on a percentage of the refund, do not hire him or her.
4.Never sign a blank tax return or form.
5.Inquire about e-filing your return — if your preparer does not e-file, you might think twice. IRS strongly encourages e-filing as it is the safest and most accurate way to file a return.
6.Avoid tax season-only preparers — professional tax preparers should be available to answer questions after you tax return is filed.
Contact InformationRaible can be reached for comment at [email protected], at 610-660-1131 or by calling University Communications at 610-660-3256.
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