Hiring someone to do your taxes may not save you from an audit

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Photographer: WEWS

IRS 1040 tax form


Photographer: ABC News
Copyright 2012 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Posted: 02/14/2012

Many people will be rushing out for help filing their taxes in the next few weeks. Before you do, you should consider carefully whether you really know who's doing your taxes? Are they really qualified?

You like to think the experts at a storefront tax office know what they're doing, and will help you avoid trouble with the IRS.

Randa Brown learned a lesson about being too trusting. Now, she's facing a taxpayer's nightmare:    an audit.

"I got a call from the IRS and he said they had pulled our tax return and needed to ask some questions and meet with us."

Randa, who has a small home sales business, thought she was covered by going to a seasonal storefront tax preparation firm. That is, until the IRS found far too many deductions for her home office.

"They put numbers in the wrong places and told us we could claim expenses that we couldn't."

Randa says the office offered a "guarantee" against an audit, but she says she was never able to reach the owner who made the promise.

"They would tell him to call me, but he would never return any of my calls."

We finally reached the franchise's corporate office, which promised to look into Randa's case.  Certified Public Accountant, Crystal Faulkner, says be cautious of seasonal storefront tax firms if you have a complicated return. Anyone can call themselves a tax preprarer.

"Make sure you do your research, get referrals from others that you trust. Do a search if someone is claiming to be CPA to see if they really are."

Crystal also says to get any guarantees in writing.   

Bottom line:  ask a lot of questions before you agree to have a tax office prepare your 1040. Get the name of your preparer, get a copy of their guarantee and find out what happens in 6 months if you need help and the office is closed.

Copyright 2012 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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