Is it Tax Season Already?

Even though it's not yet February, every day's mail seem to bring more statements needed for my 2009 taxes.
Nothing about taxes is easy, and deciding how to fill out your return is no exception. Should you hire a tax preparer or do it yourself? Go with one of the free online options or stick with the old-fashioned paper forms? If you’re like approximately 80% of tax filers, you’ll turn to tax software or a tax preparer. But that doesn’t mean the end result will be error-free. I have the newest version of Turbotax Deluxe installed on my computer, and combined with Quicken, that seems to work for me, but I have a background in tax preparation...admittedly many years ago.
When the Government Accountability Office sent secret shoppers to 19 storefront tax preparers, each and every one goofed up something. More mistakes were found in returns prepared by so-called tax experts than by individuals, the 2006 GAO report found.
The obvious solution is to simplify the tax code, but the IRS can’t change tax law; that’s up to Congress. So instead the IRS is focusing on the oversight of tax preparers. Currently, anyone can be paid to prepare tax returns without registering with the IRS, but the agency recently announced that in future tax seasons, all paid tax preparers will be required to register. Competency testing and 15 hours of annual education will also become a matter of course, although CPAs, attorneys and enrolled agents will be excluded because they already adhere to similar standards to keep the letters behind their names.
But some worry these new rules don’t go far enough.
It’s a valid concern, especially after recent reports of more than 100,000 suspicious claims relating to the first-time home buyer tax credit.
You are ultimately on the hook for your return, even if your tax preparer goofed it up.
So what can you do? Be careful, especially this year, since new tax breaks designed to stimulate the economy: energy-efficient home improvements, the home buyer credit, education tax changes to name a few, will make filing for tax year 2009 even more confusing.
Get recommendations. Ask your family, friends and business associates. Look for someone with experience preparing returns like yours. For instance, if you run a small business or own rental property, look for a preparer who understands the related tax code.
-Ask questions. How do they keep up with new tax laws? Do they have additional credentials? Will they be preparing your return or will they pass it off? Don’t hire a question-dodger.
Find a year-round preparer. For most of us, tax season ends on April 15. But the IRS is open year-round and might send taxpayers letters asking for additional documentation or announce an audit in the middle of summer.
The IRS suggests taxpayers avoid preparers who claim they can get you the most money back or base fees on the size of your refund. And only work with a taxpayer who will sign your return and provide a copy.