| Who can you trust? It's tax time again...and if you have | | | | seduced by the promise of a big payoff, ask the agent |
| a lot of deductions or you have investments and | | | | handling your taxes to prove the deduction or credit is |
| property it can seem very hard to do your own taxes. | | | | legitimate and show you in the tax code. If he/ she |
| There are numerous companies both national and local | | | | can't, ask for a manager. It's your money and you |
| that will offer to file your income taxes for you, for a | | | | need to protect it. |
| small fee. | | | | They saw you coming a mile away. Do not be taken |
| But should you use one of these companies, or try to | | | | in by a "rapid refund". If your taxes are filed |
| file on your own? For the sake of argument let's say | | | | electronically you'll get the money in about two weeks. |
| you want to have someone file your taxes for you. | | | | A rapid refund seems great: the tax company pays |
| Depending on the company, you may be walking into a | | | | you right away. But wait, this is actually a loan and your |
| trap. That is why the first thing you should do is check | | | | planned tax refund is the collateral. If you get audited, |
| out the company with the Better Business Bureau. | | | | or your refund is denied, you still owe the tax prep |
| Are they qualified? Many of these tax prep company's | | | | company and you don't have your tax return refund or |
| employees are not IRS tax experts. They are not IRS | | | | worse, you owe a tax debt to the IRS. |
| enrolled agents. They've had a three week training | | | | Statistics: For the tax year 2006 nearly $650 million |
| course at best. When you go to them they're going to | | | | was paid out to these companies for these rapid |
| make all kinds of promises to get you more money | | | | refund loans. That's $650 million that people filing their |
| than you've ever gotten back from Uncle Sam. Be | | | | taxes could have used. |
| very cautious at this point, "easy money" always has a | | | | I'm not saying all of these companies are crooked. |
| catch. | | | | Many of them can help you with your income taxes if |
| Prepare, prepare, prepare...Make sure you have all of | | | | you feel like you're drowning in paperwork and don't |
| your paperwork and do all of the math on your taxes | | | | know which tax form to use. Just remember to be |
| first. This will give you a frame of reference for when | | | | careful because you don't want an IRS-HItman |
| that company does your income taxes. Also if they | | | | showing up at your door. |
| recommend a tax deduction or tax credit that you're | | | | Now you have the smoking gun...Use it! |
| not sure about, you probably shouldn't take it. Don't be | | | | |