How responsible is your tax preparer?

The tax preparation industry is highly unregulated, so it is up to the tax payer to ensure they are receiving quality representation.  There are many large, reputable firms in Las Vegas that train and compensate their employees well.  However, there are some busy tax franchises that just carry a large amount of insurance to cover the errors their that underpaid staff may make.  A tax office can be busy because they are dealing in quantity rather than quality.  Would you rather have your return prepared correctly the first time by a qualified professional?  You should never be charged an additional fee to cover you in case your preparer makes a mistake on your return.

Please be weary of some of the assurance policies offered by tax preparation companies that charge you an additional fee to obtain. You are generally only covered by this add-on if the preparer makes an error, but not if you omit or overlook some information. Those assurance policies generally do not reimburse you if a poorly educated preparer does not take a deduction you could have qualified for.  Remember: you only have 3 years to go back and receive a refund you were entitled to from the IRS.

All of the tax professional's that I network with carry insurance that will cover their client's penalties and interest in case of a mistake, and the client does not pay extra for this either. This professional liability insurance is commonly referred to as errors and omissions insurance.  Since the tax preparer industry is so unregulated, find out how many years of experience your preparer has and if they choose to obtain continuing education. A responsible preparer will take at least 15 hours of continuing education each year.  Make sure your preparer is educationally responsible and stays abreast on the changing industry regulations.