Have you done your research before hiring a person or business to file your taxes? This is the time of year when the “Backyard Bookkeepers” and “Tax Preparers” come out of hibernation. Make sure you’re crossing your t’s and dotting your i’s when hiring a person or business to file your income taxes. Keep reading to see questions you should be asking and the devastating consequences of hiring the wrong person/firm for your Income Tax Preparation.
Tax season is officially in full swing with the deadline for personal income taxes around the corner. Millions of Canadians flock to hire a person or firm to file their taxes and meet the deadlines set out by the Government of Canada.
Unfortunately, all too often, Canadian’s overlook the importance of vetting the person or firm they are about to hire — and the consequences can be devastating.
A few years ago, a “business” opened shop in Winnipeg claiming to specialize in income tax preparation. People trusted this “business” and hired them to file their personal income taxes. Low and behold, the “business” was in fact, a scam. This “business” used the personal information of the people who hired them to receive the money from their personal income tax returns. This pivotal event led to the Canada Revenue Agency (CRA) ramping up auditing and becoming more stringent in hopes of hindering any other scams of this scale. CRA also acted to try and protect the public better. They tightened up their Efile Code criteria. A legitimate tax preparer must qualify and maintain their qualifications to obtain an EFile Code. Without this code, a Tax Preparer is not legally allowed to file your Tax Return.
Many software’s, make it so easy to file taxes now. Knowing a software, is not knowing the Income Tax Act nor does it replace the education of a professional Tax Preparer.
It is in your best interest to also ensure you are doing your due diligence before hiring a person/firm to file your taxes this year. Not only could your hard earned money and personal information be at stake, but errors on a filed tax return could also result in an audit and many more headaches.
Remember, CRA rule is always, Ignorance is not bliss. As a Canadian tax payer, you are responsible to know and understand what you are filing for taxes.
What to Look for in a Person or Business:
Here’s some important items to inquire about and research before trusting a person/firm with your personal information:
- What credentials do they have to back-up their claims?
- Do they have a EFile Code?
- Do they have experience with a full scale audit?
- Do they have experience with a GST audit?
- What security do they have in place to protect your personal information?
- Do they have a back-up if something happens to their computer’s hard drive?
- Do they have Errors & Omissions Insurance?
- How many people are involved in the filing process?
- Are their staff vetted?
KB Accounting Services Inc.
KB Accounting Services Inc. (KBA) is a full-service tax preparation company which offers audit support services and has been operating for 11 years. Which means, if you end up getting audited down the road — KBA will be there to assist you. KBA only hires staff who have the necessary and proper training in place and KBA uses smart tax software options to keep information secure. In addition, KBA has Errors & Omissions Insurance, has a professional hired for IT and possesses the crucial experience and education in both GST and full scale audits.
Hiring a Professional
KB Accounting Services Inc. is happy to help you with filing your income taxes this year. Want to see a change in the Principle Residence Exemption Tax Rules (PRE) set out by the Government of Canada? We recommend checking out another one of our articles here.
Contact Me
For any questions you may have, please feel free to contact me by phone at (306) 530-9548 or by using my online contact form below.
