UNDERSTANDING THE PROFESSIONAL LANDSCAPE:
- Tax preparers are typically CPAs (Certified Public Accountants), Enrolled Agents, or specialized attorneys. CPAs have more stringent requirements than Enrolled Agents.
- There's a shortage of CPAs and Enrolled Agents, leading to firms hiring high school interns at competitive rates to encourage CPA careers.
- Due to professional shortages, there's a risk of encountering unscrupulous tax preparers, potentially leading to scams like refund fraud and identity theft.
SAFEGUARDS AGAINST FRAUD:
- Seek preparers available year-round, especially useful in case of audits.
- Verify the preparer’s IRS Preparer Tax Identification Number (PTIN) through the IRS directory.
- Inquire about their professional credentials and continuing education to ensure they're up-to-date with tax laws.
- Check their professional history via the State Board of Accountancy for CPAs, the IRS for Enrolled Agents, and State Bar Association for attorneys.
WARNING SIGNS TO WATCH FOR:
- Avoid preparers who base fees on refund percentages or boast unusually high refunds.
- Ensure preparers offer and use IRS e-file; reluctance to e-file can be a red flag.
- Legitimate preparers will request documents and receipts; be cautious of those who don’t or who offer to file with inadequate documentation, like just a pay stub.
KNOWING YOUR RIGHTS & BEST PRACTICES FOR TAX FILERS:
- Understand that only CPAs, Enrolled Agents, and attorneys can represent you in audits. Non-credentialed preparers, like a numerically skilled relative, cannot offer this representation.
- Never sign a blank or incomplete tax return.
- Review and understand your tax return before signing, ensuring refunds are directed to your account.
One way you can avoid any potential problem with your tax preparer is to look for a CPA, Enrolled Agent or tax attorney with the Certified Kingdom Advisor designation FaithFi.com.
ON TODAY’S PROGRAM, ROB ANSWERS LISTENER QUESTIONS:
- I've been with a broker for 10 years and am concerned about unknowingly investing in companies that don't align with Christian values; how can we identify these companies and make faith-based investment choices?
- I'm retiring soon and under an old pension plan; should I take my pension to pay off debts or roll it into an IRA and pay off debts gradually?
- I have the opportunity to buy a two-acre parcel with two old trailers across from my house, but it's overpriced and would require a HELOC; is this a good financial decision?
- Living in Cook County, I found my house was over-assessed and doesn’t have a basement or attic as claimed; I appealed, but it was rejected because the market value assessment remains high – what should I do next?
RESOURCES MENTIONED:
- FaithFi.com/show (for a list of faith-based investment firms)
- Find a Certified Kingdom Advisor
Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network as well as American Family Radio. Visit our website at FaithFi.comwhere you can join the FaithFi Community, and give as we expand our outreach.
Remember, you can call in to ask your questions every workday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources.
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