Come tax time, we’ll start seeing a lot of TV ads for competing tax preparation companies. They will make claims like promise “instant tax refunds” or tell you that you don’t need your W-2s to come and do your taxes. Well, the IRS doesn’t process tax refunds any faster for these businesses than any other. What they are offering, if you qualify, is a short-term, usually high-interest loan that will be repaid by sending your refund to them or to the financial institution providing the loan. They will usually charge an additional fee for this service as well. Interest and fees will be deducted from the total refund amount, as well as the tax preparation fee. As for not needing a W-2, except in certain situations where a substitute W-2 can be used, if you are employed for wages, you will need a W-2 to file your taxes. The ploy is to get you into the office to “start” your return so you feel like you have to come back to finish once the actual W-2 arrives.

Also, because there is still little regulation on who can prepare taxes to pay, when tax season rolls around, unregulated preparers start showing up in the pop-up shops. They will start putting up signs on street corners promising big rebates aimed at attracting low-income people, and when April 16 rolls around, they will close shop and be gone.

So what should you look for when selecting someone to prepare your taxes?

* Be sure to select a tax professional with the proper credentials. Enrolled Agents and Certified Public Accountants are licensed professionals, guided by a code of ethics established by the Internal Revenue Service. We are required to keep up with the constant changes in the tax code through continuing education and this is reported to the IRS.

* Your tax professional must have a professional tax identification number and must sign all tax returns.

* You must use someone who will be available throughout the year to answer questions that may arise. There are life changes that occur during the year that can affect your tax situation and you may need someone available to offer advice as needed, or you may receive a letter from the IRS that you may need help responding to.