Pitfalls of the Tax Professional

Tax professionals spend a lot of time preparing for tax season and marketing their services to attract new clients.  Here are a few suggestions to help you avoid making mistakes that can cost you the opportunity to gain someone’s business:

Never promise a big refund.  

All taxpayers want a big refund, but that is not always possible.  One of the most common scams taxpayers fall victim to is an advertisement guaranteeing the biggest possible refund.  Many times those preparers juggle the numbers in a way that can create big problems down the road.  Taxpayers are beginning to grow leery of these types of promises and looking for preparers that will not put them at risk. Just remember – do not make promises you cannot keep.
Keep your credentials up-to-date.  

Make sure you have the proper identification needed to process returns with the Internal Revenue Service, and that your continuing education requirements are up to date.  There has been a lot of talk lately about finding preparers who are recognized as competent preparers by the IRS, and taxpayers are going to greater efforts to find out who is on the list.

Let your client decide how they receive their refund.  

In other words, offer them the choice of having their refund sent to them in the mail, deposited directly into their bank account, etc.  Don’t insist they do it your way because it’s what’s easiest for you.

Be upfront about your preparer fees.   

Don’t hit your clients with unexpected charges that they don’t agree to upfront.  Also consider charging a flat fee for your services rather than basing your fee on a percentage of the tax refund. This will help taxpayers feel more secure that you are handling their information appropriately rather than make them feel like you may pump up their refund for your personal gain.
Remain in good standing.  

Taxpayers shopping for a tax preparer often check with the Better Business Bureau, colleagues, family, and friends before deciding who they want to handle their income tax preparation. Preferred tax professionals are ethical, professional, diligent, and honest.  You have worked hard to earn a good reputation, and now it is time to work hard at keeping it.


There is a lot of information available online that helps guide people along the process of choosing a competent, reputable tax professional, and if you avoid these pitfalls, you will remain at the top of their list.

Circular 230 Disclosure

Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication