Most people hire a tax professional because they don't like to deal with the paperwork themselves. Also, if you work in a specific industry with unusual breaks, it makes sense to seek the advice of a professional. Professionals can offer you more than just help with a return. They can come up with tax-saving strategies, suggest the records to keep and moves to make this year, and help you determine estimated taxes, if required. The paid preparer is required to sign the bottom of your return, so he or she will report the income made from that activity.
Most people ask friends and co-workers to recommend a preparer.
There are professional organizations such as the National Association of Tax Practitioners, with 1,400 members across the country. Some associations and affiliations encourage preparers to obtain designations and adhere to professional standards. These designations include IRS enrolled agent, certified public accountant or tax attorney. Because virtually anyone with training or qualification can become a tax preparer, choose carefully, by checking references or conducting a brief interview. The better organized you are, the more likely you can keep down costs.