WTHR-Indianapolis recently aired a report on a popular tax franchise company that incorrectly prepared several tax returns and the number of complaints being filed against this company in many states. Ultimately, the individual of the tax return is responsible for any errors on their tax return. however, if you can prove that your tax preparer purposely falsified your tax return without your knowledge you may file a complaint or suit against the tax preparer/company. Keep in mind that many of the franchise tax companies hire individuals who may not have extensive tax knowledge. While they may require the individuals to complete a basic tax course, the course does not provide thorough knowledge of tax requirements and laws. if the preparer makes a mistake on your return, the IRS still holds you accountable for the error. Of course no tax preparer is perfect and errors might be made; however, when having someone prepare your tax return you should make sure you have done your research on the prepare, obtain references, know how long the preparer has been doing taxes and what experience do they have in the particular tax issues you might have.
As well, do not be eager to obtain a refund anticipation loan. The companies charge you an additional fee for these loans and will encourage you to take the loan because they receive a bonus at the end of the tax season for every loan they process. Therefore, you provide them with a preparation fee, loan fee and a bonus while you receive less of your refund amount. Instead chose to have your refund direct deposited or issues to you on a debit card. With direct deposit you can typically receive your FULL refund in two weeks or less.
