Need help with that tax return? Here’s how to find a tax preparer

A reader: Tax season is right around the corner and I just received a letter from my CPA that he is retiring at the end of this year. I have been going to him for 40 years. I’m really at a loss to know where to even start to find someone to replace him. I don’t want to give all my financial information to just anyone. I want to make sure they are looking out for me and making sure that I file my taxes properly and on time. Can you give me some tips to help me find someone new?

Action Line: Forty years is a long time! I can certainly understand your angst.

Here are some things you can do:

Always look for a license and check it out. Not everyone who prepares taxes is a certified tax preparer. Tax preparers and tax interviewers who accept a fee for their work must be licensed by the California Tax Education Council, www.ctec.org.

CPAs don’t always specialize in tax return preparation. So ask up front. Check to make sure that they are licensed. You can go to www.dca.ca.gov/consumer/wll.shtml to check out your CPA.

Only “enrolled agents” can represent you before the IRS if there is a mistake on your tax return. Generally, tax preparers need to have three to four years of experience to qualify to become enrolled agents, unless they have years of strong accounting experience. Enrolled agents may represent taxpayers before the IRS and the State Franchise Tax Board. To become an enrolled agent, and practice before the IRS, licensed preparers must pass an examination given by the IRS and will have three years to pass all four parts of the test.

Check with family and friends for references. Don’t be embarrassed to ask if the tax preparer got them a refund or if there were any problems with their returns.

Call the BBB at 800-675-8118 or go online to www.bbb.org/ccie to check out accredited tax preparation companies. You can use the BBB’s free Request-A-Quote program to find an accredited preparer by going online at www.bbb.org/ccie, clicking on the Request-A-Quote button and following the prompts. Or ask for a list of accredited businesses and contact them on your own.

Tax season is upon us, so you should get started now so that you can have the time to find someone you like and trust. You have until April 15th to file!

Keep good records and receipts. Even the best tax preparer can work only with what you provide them. They are not mind-readers, and they will not be able to determine your best deductions unless you give them accurate records. In your particular case, you need to keep two separate sets of records: one for your personal return and one for your business return. The better prepared you are, the easier it will be for your tax preparer to find your deductions and, hopefully, get you the refund you want.

This story was originally published December 26, 2016 at 1:18 PM with the headline "Need help with that tax return? Here’s how to find a tax preparer."