You don't like to do your taxes? Get in line. Trying to keep up with the ongoing changes in the tax code is reason enough to want to work with a Tax Preparer. Not all tax pros are the same, so it's important to know what you need in a tax Preparer.

Having someone else prepare your taxes does not absolve you of your responsibilities. You are the one held responsible in the end by the IRS if your tax return is questioned; not you’re Preparer. Therefore, when choosing a Tax Preparer ensure they have the background to assist you if your return is questioned. Most return preparers are professional, honest and provide excellent service to their clients.

Who is qualified?
A person who prepares tax returns for others should have a good understanding of tax matters. All paid tax return preparers are now required to have a PTIN. A few states currently require paid tax return preparers to have a license or registration.  Currently Arizona has no such requirements.

Overview of Tax Return Preparer Requirements

The chart below provides an overview of the various categories of individuals who may prepare federal tax returns for compensation.

*Enrolled Agents have passed a three-part, comprehensive IRS exam covering individual and business returns. They must adhere to ethical standards and complete 72 hours of continuing education courses every three years. EAs have unlimited practice rights before the IRS, which means they can represent clients for any tax matter.

***CPAs and Attorneys have unlimited practice rights before the IRS.

†To determine if you are a supervised preparer, view the fact sheet

‡ If you only prepare Forms 1040-PR and 1040-SS, you are considered a non-1040 preparer

Above taken from IRS website:
http://www.irs.gov/Tax-Professionals/Overview-of-Tax-Return-Preparer-Requirements

Key Elements

There are key elements that help to determine how you should choose a Tax Preparer.

1. Need - Determining the level of expertise your return requires is a key element in choosing a Tax Preparer. The more complicated your return, the more expertise you should look for.
2. Cost - Most preparers either charge on an hourly basis or by the forms needed to complete your return. The more complex your return, the more you should expect to pay.
3. Qualifications - Tax preparers should be current on the constantly changing tax laws. Find a Preparer whose credentials meet your needs.

Tips for Choosing a Tax Preparer:

•  Stay away from preparers who guarantee a refund.
• Stay away from those who get paid based on how much you get back. 
• Be wary of any Tax Preparer who knows tax preparation techniques and deductions that no one else knows. 
• Ask how the Preparer handles gray areas of the tax code. A Preparer who takes all kinds of odd deductions may make you more likely to become the target of an audit. 
• Ask whether the Preparer has ever been subject practitioner penalties. You will have to follow your instincts as far as analyzing their answer goes. They are not required to answer the question, and if they do, there is no way for you to verify their answer

 If you're unsure whether a tax pro is worth the money, bear in mind that you may get back more in tax savings than your Preparer charges. After all, it's a preparer's job to stay current on any changes that can work in your favor. And the fee is tax-deductible.

Unfortunately, unscrupulous tax return preparers do exist and can cause considerable financial and legal problems for their clients. Examples of improper actions by unscrupulous preparers include the preparation and filing of false income tax returns that claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions.

How do you find an Enrolled Agent?

The easiest way is to find an Enrolled Agent in your area is to visit the National Association of Enrolled Agents website.

http://www.naea.org

Click on "Find an EA" (found on the left of the page under the heading). Type in your zip code and check if you have any specialties.