Some can do their own tax return; heed tax professional's background

As tax information begins to show up in the mailbox, the issue everyone needs to address is how best to prepare a 2009 tax return.

In today's world there are more options than ever before. In the past, you either did it yourself or you paid someone to prepare a return. Today, with technology, there are additional options. In weighing the options, know that you are ultimately responsible for your tax return. If you file a tax return that is incorrect, you are liable to pay any additional taxes, interest and potential penalties. Because the consequences of filing an incorrect return are substantial, it is important to make an informed decision about how to prepare your 2009 tax return.

The first decision to make is whether to hire a professional. As far as I am concerned, not everyone needs a professional tax preparer. There are many situations where you can do your return on your own, particularly, these days with the help of a software program. For someone willing to take the time and follow instructions, he/she can prepare a return.

To prepare a return, pay attention to detail. If you're not the type who pays attention to detail maybe you should not prepare your return.

After all, preparing your return is more than just putting numbers on a page and adding them up.

I recognize there are people who still prepare their return by hand without the assistance of a software program. Except in a very few cases, I don't recommend this method. If nothing more, there is a greater chance of mathematical error when you complete your return by hand as opposed to using a software program.

For individuals who make less than $57,000 a year and who want to do their return, use the IRS free file program. Go to www.irs.gov and click on “free file.” The beauty of this program is you're not using IRS software but rather, you can choose from numerous software providers such as Turbo Tax and H&R Block. The IRS has sponsored this program for a number of years and it has proven to be successful.

If you're the type of person who either doesn't pay attention to detail or just doesn't want to complete the return, seek the assistance of a professional. Look for a professional who stays current with the changing tax laws. In addition, you want someone who will stand behind their work if there are problems with your return.

That doesn't mean you need a certified public accountant to prepare your tax returns. However, you don't want someone preparing your return who doesn't have any qualifications.

In addition to CPAs, enrolled agents are a group of individuals with continued education requirements who are generally qualified to prepare tax returns.

I have no problem with some of the national companies that prepare tax returns because they generally do have education requirements for preparers. However, the more complex your return, the more I would lean toward a CPA or an enrolled agent.

This time of year, a variety of lowlifes come out of the woodwork. They claim to have the inside scoop on how to avoid paying taxes, either by taking a variety of non-existent deductions or claiming certain income as not taxable. Bottom line is it is your responsibility to make sure that you do not hire these shady characters. Just as you wouldn't go to an incompetent doctor, you need to avoid incompetent tax preparers.

I know some people believe the best tax preparer is the one who is most aggressive and not afraid to push the envelope when it comes to completing your return. My definition of the best tax preparer is a little different. Yes, I want them to identify any and all deductions. However, when it comes to being aggressive, I want to make that decision, not them. In other words, I don't want the tax preparer taking an aggressive position without consulting me. After all, I am the one who is ultimately responsible for my return. I want to be involved in making all decisions.

We are at the beginning of tax season so there is plenty of time to decide how you're going to do your 2009 return. My advice, don't automatically do what you did last year. Take your time and make the right decision for this year. Good luck!