Getting What You Pay For
Author: Keith Huggett
It's tax season again and the air waves are filled with advertisements for tax preparers. Everyone needs to have their taxes prepared but how to choose which service is the right one for you?
When you are choosing a tax preparer there are certain qualities you want to consider. What do you want to take away from the experience? A correctly filed tax return? Most certainly! But that should not be the only criteria used to make your decision. While cost is also a factor, it too should not be the only factor weighing in.
While some firms offer you a speedy return, or an RAC (a return advancement check) for what seems to be a low cost initially, that low cost may come back to hurt you later in the form of hidden fees or missed deductions. RAC's used to be called an RAL, or a Return Advancement Loan. 2012 is the last year that these loans are available so most firms have chosen to change the form of the advance to a check instead of the loan. Instead of loaning you your return money at a high rate of interest, your return is put into a temporary bank account, in the form of a debit card, which you use until the card is emptied and the account is closed. Fees are accrued when you open the account, or if you try to transfer the balance to a different account, called a closing fee. After opening the account, using the card until empty causes no additional fees. It is in your best interest to look into direct deposit for your refund rather than an RAC, as it takes as little as 8-10 days now for direct deposit to take effect, rather than paying a $30-$35 service charge on top of the charge for the return.
If you have questions about your taxes, and like to play a part in your tax life, the cost of your return tends to go up. Tax planning costs a little extra. Do you like to spend an hour or more with your tax professional going over your return? Do you discuss what deductions are available to you? Or do you just accept what your prepared tells you? Here's your return, you owe $200, do not pass Go! Time spent with your tax preparer discussing your year, what you did, what you can do differently next year could be what sets the bar between one business and another. Customer service, tax knowledge, knowing exactly what your client needs is the difference between a good tax preparer and a great one.
All of these criteria should be applied when choosing a tax preparer. It may cost a little more, but remember: A little knowledge goes a long way, and you get what you pay for.
At the Tax Office, Inc., we will gladly review your prior year returns to be certain that they were filed properly, and make the corrections if there were errors. For your tax needs, please contact us today.
