I’m interested in this topic, with an added twist: what would be the best course of action if I need a tax preparer while I’m living overseas? I’m not sure if I can find a suitable firm while I’m living in Asia, or if I do they’re probably corporate specialists and would charge exorbitantly. Is it possible to work with a CPA or other representative in the US remotely, without ever actually visiting their offices?
I had good luck with my tax preparers the two years I went to H&R Block. But the second time I went, after my return was all prepared they tried to upsell me. They wanted me to pay extra for them to represent me to the IRS if there were any questions. But as paid tax preparers they were already on the hook for that.
So I declined. Then they stuck a form in my face and wanted me to sign that I declined the premium package. I took the time to read it and it said I decline the premium package… oh, and down at the bottom in 6 point italics, I agree to waive all my legal rights and agree to binding arbitration of H&R’s choice.
I told them to stuff it. Since my taxes were already done I just paid them for the basic service and took my tax return. I’ll never go back.
That’s pretty bogus. The IRS sez that a Paid preparer must take certain responsibilities regarding your return. For example, in general, if you rely upon the advice of a Pro (and here we mean Tax Attorney, CPA or EA) the IRS will generally waive any penalites against you for the Pro being wrong. ymmv
I know that it is possible, because we have some corporate clients who are physically overseas, but do work in the US and have to pay US taxes. So it’s possible. I am not sure how you would go about finding someone to work with you if you can’t meet with them though.
We found an ELP (Endorsed Local Provider) on Dave Ramsey’s website. He has a very stringent screening process, and as he likes to say, only endorses those who have the “heart of a teacher, not a salesperson.” We were very happy with the accountant’s work and will be using him again this year.
We used to use H&R, but our dude died 
and we didn’t like his replacement. Plus, way too pricey for a basic tax return. Then we used AARP’s free service. They hire and train just about anyone to do these tax returns for us geezers, and for the first couple years, it seemed to be OK. However, one year, the return just didn’t smell right. I found a guy down the street who is positively creepy, but he found the deductions and whatever and saved us a shitload of money. He does a great job. If you can stand his “oughta be burned and buried” Victorian office with a space heater and floor to ceiling crap stacked throughout. He’s a fireman, too! :eek:
Anyway, I suggest you check out independent people in your area, or even ask friends and co-workers. You don’t need to pay as much as H&R wants to get the job done right.
Koxinga, all the IRS documents are available online and they should be able to give you directions for your particular situation.
I’ve used TaxCut for 4 years now, including the year we bought a house and have not had any problems. You should only need a pro if you don’t have the time or desire to understand your taxes.
Regarding the WP article: :dubious: A problem with the software or with being honest?
We’ve been using H&R Block online for the past seven years, including when we bought our house, and have never had a problem. It’s a step between doing it yourself and having a professional, without the hassle of installing software. Basic option is $29.99:
http://www.hrblock.com/taxes/products/product.jsp?productId=31
One of the good things about programs such as TurboTax is that they really try to make them friendly, a la application installation wizards. It’s not a big spreadsheet where you have to fill in boxes all over the place; it’s like, "Did you work in more than one state this year? Did you sell any stocks this year? If so, did you get a 1099? How many 1099s? Are you contemplating becoming the Secretary of the Treasury?, etc.)
For just having bought a home, I think TurboTax would suffice, but I sought an accountant for another reason a long time ago. Ask yourself: who do I know who has an income situation similar to myself (meaning, self-employed vs. W-2, fifteen part time jobs vs. one, has rental properties vs. doesn’t, or in your case, bought one or more houses in the past). Then, from that list, who seems to be doing well for themselves financially or, at a minimum, doesn’t mention wanting to kill whoever wrote the complicated tax codes? Ask that person for a reccommendation.
The good news for you: most of the IRS tax code was written by people who own houses.
Thanks, but if that were sufficient for any given person’s situation than nobody in this thread would need a tax preparer at all, right?