Read this complete guide to avoid being a victim of fraudulent tax preparation services.
Doing one’s own taxes requires patience, determination, and good command of the jargon relevant to taxes. Needless to say, it is not everyone’s cup of tea to fill forms and file tax returns with the Canada Revenue Agency.
Many tax filers, be it an individual or a corporation, prefer not to take on this Herculean task and instead go to someone who knows the art of filing taxes like the back of their hand.
If you’re looking for a service provider, you may not know which tax preparation service to choose from the numerous companies available. As of 2019, accounting services that include tax and accounting services, business advisory services toronto, and many other similar services have shown immense growth with an increase in profits up to 20.3 billion dollars in 2018.
Of all the Canadian provinces, Ontario generates the most revenue from tax services and others similar to it.
With so many options available, it’s natural to get confused and overwhelmed. So we are here to help you make the best decision.
Here are some of the dos and don’ts you should go through before deciding upon a tax service provider for your organization.
1.Verify if the Tax Service Provider Is Licensed, Legit, and Insured
One of the first steps while choosing a tax service provider is ensuring that they have a valid and authentic license along with a valid business number. A valid business number must also be accompanied by an E-file number which will enable the tax service provider to file your tax returns in hassle free manner with the Canada Revenue Agency.
However, having a license and a business number is not sufficient; your tax service provider should also be insured. It is important to take this precaution in order to avoid paying penalties for mistakes and delays made on the tax preparer’s end. It is the insurer who will pay the penalty in case of any mishap
2.Ensure the Tax Preparer Understands Your Requirements
Every organization has a different structure, and business plan, and tax requirements. Some businesses are considered non-residential corporations, some not for profit and some resident corporations. Even firms who don’t owe any taxes, such as tax-exempt corporations or inactive corporations, have to file taxes. So the tax filing requirements differ for all.
Make sure the tax preparation service fully understands your business model to avoid errors and delays.
3.Beware of Exploiters
Before agreeing on a tax service provider, practice due diligence and do your research. Search and find out the average fees charged by a tax preparation service and compare with multiple similar services. This way, you can avoid getting ripped off and will hire a service that will charge a reasonable fee.
4.Beware of Bluffs
There will be certain tax preparation services that will make claims of fetching you higher tax claims and deductions. Stay away from them. These tax preparation services might make intentional mistakes on your tax returns and forfeit your information tax forms to fulfill their false promises.
This will alert the Canada Revenue Agency, and they will come after you for an audit. Remember, it’s you who has a legal obligation to ensure your tax returns are error-free and not the preparer.
To avoid this situation, go for a tax service provider who does not demand fees based on your refund rate. And also, ensure that you also reassess your returns.
There is a high possibility that you might be a victim of fraudulent tax preparation services and even higher if you are an amateur and it is your first time filing tax returns.
Reach out to a reliable and trustworthy tax service provider who has a lot of experience and will take care of your specialized needs. You need someone like us, Accounting Plus Financial Services Inc, who provide corporate tax services markham.
Connect with us today!