Tax season may be over, but tax problems don’t follow a calendar.
If you haven’t filed your tax return yet, received a tax notice, discovered a mistake on a previous return or simply don’t know what to do next, you may be looking for help.
And when you’re dealing with a tax problem, who you turn to matters.
Don’t let a tax problem become a bigger problem
When you’re worried about taxes, it can be tempting to search online for the quickest answer or hire the first person who says they can fix the problem.
But be careful.
Tax problems can involve deadlines, penalties, interest and complicated rules. The wrong advice—or taking advice from someone who isn’t qualified to help—can make an already stressful situation worse.
Still haven’t filed your tax return?
If you’re a late filer, don’t assume that ignoring the problem will make it go away.
If you haven’t filed your return, find out what you need to do and get started as soon as possible. Depending on your situation, you may need help determining what forms you need, what information to report or how to address a missed deadline.
If you’re going to pay someone to prepare your return, take the time to check their credentials before handing over your personal information.
In California, many individuals who prepare tax returns for a fee are required to register with the California Tax Education Council (CTEC), unless they qualify for an exemption.
Received a tax notice?
Opening a letter from the IRS or the California Franchise Tax Board (FTB) can be intimidating, especially when you aren’t sure what it means.
Don’t ignore it.
Read the notice carefully and pay attention to any response or payment deadline. If you don’t understand what the notice is asking you to do, consider getting help from a qualified tax professional.
Be careful who you trust
When you’re facing a tax problem, you may be especially vulnerable to someone who promises a quick fix.
Be cautious of anyone who:
● Promises a specific refund without reviewing your tax information.
● Tells you to claim deductions or credits you don’t qualify for.
● Pressures you to make a quick decision.
● Asks you to sign a blank or incomplete tax return.
● Refuses to explain their credentials or who will handle your return.
If something sounds too good to be true, take a step back and verify who you’re dealing with.
Check before you file
If you need someone to prepare your tax return for a fee, check their credentials before sharing your Social Security number, income documents or other personal information.
CTEC provides a Find/Verify a Tax Preparer tool that allows California taxpayers to check the registration of CTEC-registered tax preparers (CRTPs).
Not every tax professional is required to register with CTEC. California attorneys, CPAs, and IRS enrolled agents generally are exempt because they are regulated through other professional systems.
If someone tells you they are exempt from CTEC registration, ask about their professional credentials (as listed above) and verify them through the appropriate organization.
Your tax problem may be stressful, but rushing into the wrong solution can make it worse.
Check the credentials. Ask questions. Protect your information. And get help from someone qualified to help.
