Gerri Willis Commentary:
Top Tips by Gerri Willis Column archive

Picking the right pro to do your taxes

Some are good, others are lousy. Gerri Willis offers some advice about how to find a reputable tax preparer.

By Gerri Willis, CNN

NEW YORK (CNNMoney.com) -- With the tax filing deadline less than two weeks away, the Justice Department announced it is suing five companies that operate Jackson Hewitt Tax Services franchises, accusing them of preparing fraudulent tax returns.

Here's what you need to know to avoid fraudulent tax preparers.

1: No experience necessary
TAXES

There is no federal agency that regulates tax preparation professionals. That means just about anyone can pick up a book on preparing taxes and set up their own shop. It doesn't help consumers either that it's very difficult to get the credentials or audit records for tax preparers.

Right now Congress is trying to get the IRS to certify individuals who prepare taxes. But your best bet is to probably check out any complaints that may have been filed against the tax preparer at the Better Business Bureau.

Also, you may want to call your state board of accountancy to ask whether your CPA is licensed and has any disciplinary actions against him or her. You can get the phone number at the National Association of State Board of Accountancy's Web site NASBA.org.

2: Red flags

Once you sign your tax return, you're on the hook for any mistakes. That being said, you want to make sure you find someone who can do the job right. Here are some red flags to watch out for.

You want to make sure you choose a tax preparer you feel comfortable with. Be wary of tax preparers who claim they can obtain larger refunds than other preparers and avoid preparers who base their fee on a percentage of the amount of the refund.

If your preparer doesn't ask to see your receipts or doesn't ask you a few questions to determine your qualifications for expenses, that's definitely a red flag. And of course, be wary of tax preparers who encourage you to sign a blank tax return.

3: The right preparer

Before selecting a tax preparer, interview them like you would your doctor or your dentist, says John Roth of CCH tax information company. And remember, knowing their reputation is crucial. Find out if they can provide references and if those other clients were satisfied with the work.

You also want to find out if the preparer is affiliated with a professional organization or if the preparer takes continuing education classes. It's also important to make sure that your tax preparer isn't overwhelmed and that your tax return is getting the attention it deserves.

Most tax friendly places 2007

Expensive tax traps to avoid

Guard against tax scams

Gerri's Mailbox: Got questions about your money? We want to hear them! Send e-mails to toptips@cnn.com or click here - each week, we'll answer questions on CNN, Headline News and CNNMoney.com. Top of page

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.