How to Select a Tax Preparer

A taxpayer is responsible for their tax return's accuracy. Unfortunately, anyone can be a "tax preparer" in Canada, so choose your accountant wisely. Look for a reputable accountant and ask questions if you notice any discrepancies. Remember, a refund isn't always positive. If you have concerns, don't hesitate to ask or consider changing accountants.

In our previous article, we emphasized that a taxpayer is ultimately responsible for the correctness and accuracy of tax returns, regardless of who files them. While not every taxpayer is a tax expert, however, everyone is responsible for exercising due care in selecting the right tax filing service. They should ask questions within the limits of their educational background and tax knowledge. Where something seems out of the norm, it’s crucial to take extra caution and seek answers. These will save taxpayers from being victims of tax scams and avoid red flags in tax audits.

Here are some tips for selecting a tax filing service or tax accountant near you that you can trust and rely on. These tips are relevant for everyone, whether you are a businessman, retired person, employed, investor, young or old man. If you notice any red flags, ask questions until satisfied or consider changing your accountant.

Do not blindly trust a tax preparer. Do check for their qualification, market reputation or credibility check, and history in the business.
“I relied on the tax preparer” will not be accepted as an excuse by the CRA or courts. Ultimately, you are responsible for the timely and correct filing of tax returns.
Every individual is not expected to be a tax expert, but ignorance of the law is no excuse. At least have basic knowledge of the amounts appearing in your tax return, income to be reported, and credits and deductions you qualify for.
If you are fortunate enough that your income and business are growing, things will get more complicated. With the growth in income and wealth comes more responsibility; you need to be more involved or at least ensure that a reliable accountant prepares a return for you.
Everyone loves large refunds, but if the refunds or other numbers are substantially different than previous years, ask for an explanation.
Obtain a full copy of your tax return. It is surprising to meet clients who don’t have a copy of their return. This causal behavior is an invitation for trouble. One needs to change it. Always ask for the full copy of the tax return before you sign it.
Never sign blank form T183, which confirms that you reviewed all the information in the tax return and authorizes the tax filer to file the return.
Ensure that your return is filed electronically by a tax filer, registered with the CRA, and has an EFILER number. It will also ensure that the tax filing service uses the CRA’s certified software, resulting in more accuracy in the process. Furthermore, once your return is ready, it is filed within a few seconds. Hence, our advice is no more paper filing!
If the preparer promises a large refund, especially without knowing your tax situation, this should be a big red flag. No professional can promise a refund, let alone a large refund, without thoroughly going through your tax file.
When a tax filer charges a fee based on a refund instead of the work required, it should be a warning signal. Most professionals will charge fees based on their work effort rather than the refund. In many cases, even though a tax preparer will work hours on your file to make a complete return, you may end up in a tax payable situation.
Some tax filers will discourage you from understanding your tax return, being unable to answer your questions. They may not be scams. However, a good service provider must prepare your return correctly and be able to explain tax issues and answer your questions.
Make sure you have access to the tax filing service provider. Working with them virtually and taking advantage of modern technology is okay, but they must be available and approachable. We are surprised that many tax preparers are getting their tax returns filed by service providers with no physical existence. If you don’t know where your service provider is, how can you access them? If they turn off their virtual presence, you will not be able to reach them. It should be scary enough to deal with such as an ‘online service provider.’ These people are most susceptible to scams.

These are a few points you must consider and be vigilant about when selecting and dealing with tax accountants. Any single point from the above will not ensure that you are secure and remain compliant with tax laws. However, when used in combination with each other, they will ensure that you connect with an honest and qualified tax accountant who can take care of you for years to come.

Lastly, Work With a CPA

Typically, CPA firms or CPA accountants charge more than non-certified accountants, but businesses and individuals use them for specific reasons. CPAs are adequately educated and trained to handle your accounting and tax filing needs and advise you on tax planning. CPA Canada or the regional CPA body licenses them. They are regularly monitored by these professional bodies, ensuring that CPAs meet a minimum quality standard and safeguard public interest.

Unfortunately, in Canada, almost anyone can be a ‘tax preparer.’ Naturally, an individual without proper training cannot match the service level that a qualified CPA firm provides. A CPA has a long-term commitment to their reputation and adheres to CPA ethical standards. Tax is already a stressful time for most Canadians, so it’s crucial to select a reliable accountant who can assist you in the years to come.

If you need a reliable tax accountant and help with tax planning, incorporation, bookkeeping, salary, and dividend planning, Source Accounting Professional Corporation tax professional can assist you. Book a consultation call by calling 647-930-8130.

Source Accounting Professional Corporation (CPA) is a full-service accounting firm in Mississauga, dedicated to individuals, small and medium-sized businesses, providing tax preparation, corporate tax filing, accounting, bookkeeping services, payroll solutions, etc. If you are looking for an accountant Mississauga (Brampton, Toronto, GTA) or an accountancy firm Brampton, you are in the right place.

Disclaimer: The above contents are provided for general guidance only, based on information believed to be accurate and complete, but we cannot guarantee its accuracy or completeness. It does not provide legal advice, nor can it or should it be relied upon. Please contact/consult a qualified tax professional specific to your case.