What to look for in a tax preparer

While many taxpayers prepare their own returns, some people with complex issues -- or an aversion to such detail-oriented filings - engage the services of a paid tax preparer. It's important to find a smart and reputable one because, as the Internal Revenue Service points out, the taxpayer is still legally responsible for any errors.

The IRS and Alan E. Weiner, partner emeritus at the Melville accounting firm of Holtz Rubenstein Reminick Llp, offer tips for finding a preparer:

Credentials: Ask for referrals from friends and family, suggests Weiner. You'll certainly want a professional who's up-to-date on ever-changing tax issues, but also one with whom you have rapport. Check out preparers with the Better Business Bureau, says an IRS tip sheet, as well as the state accountancy board and state bar association. Click here to  check up on accounting pros' licensing status at New York State's online verification site: www.op.nysed.gov/opsearches.htm.

Red flags: Beware of preparers who base fees on the size of your refund or ask you to sign a blank tax form, says the IRS. Also, before you sign up find out exactly who is working on your return and how to contact the person down the road. (In some cases, returns get delegated down the food chain, so it's important to know just who is working on yours.) Click herefor more advice go to irs.gov/newsroom.

New this year: Make sure the preparer has registered with the IRS for a preparer tax ID number -- even if the person already had one -- before they start crunching your 2010 numbers. That goes for accountants as well as attorneys and enrolled agents, says Weiner. Click here to learn more at irs.gov/newsroom.