Finance Resources You Can TrustFinance Resources You Can Trust
  • Home
  • Personal Loans
  • Insurance
  • Mortgages
  • Student Loans
  • Credit Cards
  • Investing
  • Taxes
  • Small Business
What's Hot

9 Consequences of a Bad Credit Score

July 7, 2022

7 credit card perks you might be missing out on

July 7, 2022

These 7 Credit Score Landmines are Hurting Your Credit

July 6, 2022
Facebook Twitter Instagram
Finance Resources You Can Trust Finance Resources You Can Trust
Facebook Twitter Instagram
Subscribe
  • Home
  • Personal Loans

    Step By Step Guide on how to apply for a personal loan with best rates

    June 26, 2022

    LightStream Personal Loans Review – Read This Free 2022 Guide Before Applying

    December 31, 2021

    Upstart Personal Loans Review – Is it for you?

    December 29, 2021

    Avant Personal Loans Review 2022 – A Free Guide On How To Get Approved

    December 23, 2021

    LendingClub loans Review

    December 23, 2021
  • Insurance

    A Comprehensive Guide To Small Business Insurance

    December 22, 2021

    All You Need To Know About Horse Insurance

    December 22, 2021

    7 Significant Differences Between Petplan and Pet Insurance

    December 11, 2021

    Advantages and Disadvantages of Pet Insurance

    December 1, 2021

    Types of Life insurance in the US

    November 29, 2021
  • Mortgages

    What are FHA Loans and what do you need to know about them?

    November 17, 2021

    Mortgage Refinance – A Complete Guide

    November 17, 2021

    What are mortgages, and how do they work?

    November 17, 2021

    How do mortgages work in the USA? A complete guide on US mortgages.

    November 15, 2021

    Everything You Need to Know About Home Equity Line of Credit

    November 13, 2021
  • Student Loans

    Everything You Need to Know About Student Loan Consolidation

    June 24, 2022

    8 Ways to manage student debt after graduation

    June 24, 2022

    What to know about unsubsidized student loans before applying.

    October 21, 2021

    Federal Student Aid. All you need to know about them.

    October 19, 2021

    Student Loans Deferred? What you need to know about deferment.

    October 18, 2021
  • Credit Cards

    7 credit card perks you might be missing out on

    July 7, 2022

    5 Credit Card Myths You Need to Stop Believing

    June 29, 2022

    Credit Cards 101: Get Insights On How They Work

    June 24, 2022

    Secured Credit Cards 101: How They Work and Why You Should Get One

    June 24, 2022

    5 Ways to Avoid Getting Buried in Credit Card Debt

    June 17, 2022
  • Investing

    A Free Guide To 1031 Exchange: What You Need to Know

    June 28, 2022

    What you need to know about high risk investments

    January 2, 2022

    A Complete Guide On The Stock Market: What you should know.

    January 2, 2022

    Why is investing better than Savings? See The Six Reason Why.

    January 1, 2022

    Advantages and Disadvantages of Investing

    January 1, 2022
  • Taxes

    9 Tips on how to choose the right Tax Preparation Attorney

    June 24, 2022

    A comprehensive Guide to HR block online

    June 19, 2022

    The Top 7 Benefits of Hiring a Tax Preparation Accountant

    June 19, 2022

    Everything You Need to Know About Certified Public Accountants

    June 18, 2022

    Everything You Need to Know About Free Online Tax Filing

    June 16, 2022
  • Small Business

    A Comprehensive Guide To Small Business Insurance

    December 22, 2021

    A Detailed Guide On SBA Disaster Loan

    December 8, 2021

    SBA 7a Loan: A Free 2022 Guide On What To Know About It

    December 8, 2021

    Difference Between SBA 504 and SBA 7(a) Loan

    December 8, 2021

    How to Get A Startup Business Loan Without Collateral

    December 8, 2021
Finance Resources You Can TrustFinance Resources You Can Trust
Home»Taxes»7 Tips On How To Avoid Tax Preparation Ripoffs in 2022
Taxes

7 Tips On How To Avoid Tax Preparation Ripoffs in 2022

Biz GeldBy Biz GeldJune 14, 2022Updated:June 17, 2022No Comments5 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
Share
Facebook Twitter LinkedIn Pinterest Email

Tax season can be extremely stressful, especially if you’re not sure what to expect or don’t have much experience with it. If you’re in need of tax preparation services and are wondering how to avoid being scammed by unscrupulous companies, this guide is just what you need!

Whether you choose to use a professional or do it yourself, this guide will help you make an informed decision that benefits you. You will be able to navigate any tax preparation ripoff.

How Do You Avoid A Tax Preparation Ripoff

Below are 7 tips consider in order to avoid any tax preparation ripoff.

1. Research before you hire

Here’s an easy, though not foolproof, way to tell if a tax preparation company is legit: Find out whether it’s associated with either the IRS or one of its approved tax preparer networks. That can be done online using this IRS resource page.

Although some scammers have managed to sneak their way into both systems. Research other areas too: Type your query—say, Best Tax Preparers in New York City—into any search engine and read through all of your results.

2. Read all contracts

If a tax preparation consultant or company provides you with a contract—and there’s no reason why they shouldn’t—read it thoroughly. It should clearly lay out what services are included in their fees, and what any additional charges may be (for example, if you need returns filed electronically rather than on paper).

You can also ask them directly about these things; even better if you have someone else ask on your behalf. Be clear on how they handle refunds. Make sure you know when they will issue refunds and what your cut is after taxes are taken out. That way you won’t be surprised with an unexpected delay from February all of March. If anything doesn’t seem right to you, don’t hire them!

3. Get estimates from multiple sources

There are a lot of companies out there who specialize in offering tax preparation services. In some cases, you can find hundreds of them operating in your area. To get an accurate estimate, it’s important that you request bids from multiple sources.

When you do so, you’ll be able to get a good sense of how much prices fluctuate depending on what service is being offered and where it’s being offered. If price is your top priority, requesting bids from numerous companies will help keep costs low.

4. Understand the difference between refundable and nonrefundable fees

Many tax preparation companies offer both refundable and nonrefundable services. Nonrefundable fees are set in stone. You won’t get them back even if you owe little or no taxes on your return.

Refundable fees, however, will be returned to you if they are not used. This gives you flexibility with your payment method but means that it may take longer for you to receive your refund after filing a tax return with a refundable fee attached.

5. Take notes during meetings

It’s easy for someone—even a tax professional or financial planner—to misspeak. And if you don’t take notes during your first meeting, you may forget crucial information later on.

Before asking for help, take some time to educate yourself on industry lingo and terminology. Doing so will help keep everything in context when you meet with an advisor.

You should also be prepared to ask questions like: What is my total debt load? Can I afford an annual vacation? If I lost my job, how long would it take me to get back on my feet financially? Be sure not only that you know what they mean but that they understand what you mean as well.

6. Create a list of questions to ask when meeting with an accountant

If you are meeting with an accountant, bring a list of questions for them to answer. This should include any concerns that you may have regarding your finances as well as ways in which you can save money throughout tax season.

Asking direct questions will help gauge how attentive and willing an accountant is to working with you and helping your needs in preparation for tax time. There is no harm in asking about price either. A high fee does not always mean quality, there are many qualified accountants who charge less than others and offer high-quality service.

7. Pay attention to your return address

One common tax preparation ripoff involves an email that appears to come from a reputable tax company. The email asks you (the victim) to click on a link and provides a confirmation number in order for you to pay your fees for services.

You’re directed through a series of links (which may or may not appear legitimate) until you’re asked for credit card information and personal details. Then, after all of your personal information is collected, it’s used against you—whether it’s used right away or down the road, at some point, someone will use it against you.

In short: Never provide your personal information via an unsolicited email.

Bottom Line

If you want to make sure that you’re not being scammed, make sure the company is registered with the IRS. By law, anyone claiming they can help you with your taxes has a legal obligation to register with the IRS, and registered tax preparers have a PTIN (Preparer Tax Identification Number).

You can visit the IRS website here and search for your local tax preparation services. Some websites will allow you to search based on location while others only give results based on business name.

If you’re uncertain about whether or not the business is reputable, try doing an online search of their company name along with scam or reviews. You should also ask for references from friends and family who have used the services before.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleUS Tax Preparation: A Free Guide and 5 Most Important Steps
Next Article A Guide to Tax Preparation Services in the United States
Biz Geld
  • Website

BizGeld provides well-researched and free finance educational content to help you make informed financial decisions. Although we provide unbiased information and recommendations, we are not your typical financial advisor. So before making any financial decision, please contact a professional.

Related Posts

9 Tips on how to choose the right Tax Preparation Attorney

June 24, 2022

A comprehensive Guide to HR block online

June 19, 2022

The Top 7 Benefits of Hiring a Tax Preparation Accountant

June 19, 2022
Add A Comment

Comments are closed.

About BizGeld
About BizGeld

Discover, save and make sense of anything to do with finance - from how to start a business, invest in property, find the best credit card, and much more.

Facebook Pinterest

Disclaimer: BizGeld strives to keep its information as accurate as possible and up to date. The information we share might be slightly different from that of a financial institution, service provider, or specific product site. All financial products, shopping products, and services are presented without warranty. When you are evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are non-binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest YouTube
Latest Resource

9 Consequences of a Bad Credit Score

July 7, 2022

7 credit card perks you might be missing out on

July 7, 2022

These 7 Credit Score Landmines are Hurting Your Credit

July 6, 2022
Get Informed

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

© 2023 Bizgeld. Privacy Policy | Prequalification Terms | Terms of Use |

Type above and press Enter to search. Press Esc to cancel.