Harris: Vetting a reputable tax preparation service

By Charlestien Harris, Retired Financial Coach at Southern Bancorp

Tax season is here, and now is the time to secure a trustworthy tax preparation service. By now, you should have received most of the documents necessary to prepare your taxes for 2025. By law, you should receive those tax documents by January 31.

Just recently, I was watching the news and saw a story about a tax service using fraudulent methods to complete a client’s tax return, which caused the client to owe the IRS thousands of dollars. This is why I always tell tax clients to review their tax return and ask questions before signing it. You alone are responsible for any taxes owed to the IRS. Some tax services may offer to assist with certain penalties, but this is not the norm.

Below are some guidelines to consider when choosing a tax preparation service.

1. Check for credentials.
   The IRS issues a Preparer Tax Identification Number (PTIN) to credible tax preparation services. The IRS website has a directory that lists all registered tax preparers for each tax season. Do not be afraid to verify any prospective tax service provider you are considering using this season.
2. Verify licensing.
   Some tax preparers may advertise specific titles, such as CPA (Certified Public Accountant). These credentials can be verified through the State Board of Accountancy or, for attorneys, the State Bar Association. A tax attorney is still an attorney, so be sure to do your due diligence.
3. Ask about experience.
   As a tax client, you want to ensure that the preparer you choose has experience with your type of return. Small business, self-employed, and corporate returns are just a few distinctions that can significantly impact the expertise required. Not all tax preparers can complete all types of returns, even if they are credentialed by the IRS.
4. Check reviews or ratings.
   Reviews are very important. A credible tax service should have positive feedback from organizations such as the Better Business Bureau, AARP, or a local Chamber of Commerce. Other helpful sources include Yelp and Google Reviews, which often provide customer comments – both positive and negative.
5. Inquire about preparation fees.
   Obtain clear, upfront pricing. Avoid preparers who base their fees on a percentage of your refund. Fees should be clearly stated or displayed in plain view for your convenience. If not, do not feel intimidated or hesitant to ask how fees are calculated and what method of payment is expected during the tax preparation process.
6. Ask about securing your personal information.
   Protecting your personal information should be a top priority. Ask how your tax documents and personal data are handled. If you are working virtually, inquire about the secure portals or services used to prevent data breaches. Are you emailing or texting sensitive information? If so, how is it stored, protected, and disposed of after your return is filed?
7. Check for audit support.
   This is critical. If you are audited by the IRS, ask what type of support the tax preparer will provide. Will they guide you through the audit process? Will they be available to answer questions about how your return was prepared? Understand that once you sign your return, you are confirming that the information is accurate and that you accept responsibility for it. Please review your return carefully and ask questions before signing.

As you can see, vetting a tax preparation service requires preparation itself. Do not choose the first service you see or rely solely on an advertisement that “looks or sounds” good. By following the tips above, you can reduce the risk of penalties or additional tax assessments resulting from an erroneous return prepared by a less-than-credible service.

Southern Bancorp is a reputable tax preparation partner and will even file your taxes for free. Their tax team is trained and certified by the IRS, and they’ve been doing this tax work for more than 20 years. To find one of their tax sites near you, visit banksouthern.com/taxes. 

For more information on this and other financial topics, you may write to me at P.O. Box 1825, Clarksdale, MS 38614, or email me at charlestienharris77@gmail.com.

Until next week – stay financially fit!

Charletien Harris is our financial contributor, a retired financial coach with Southern Bancorp.