Business Taxes

Avoiding Business Tax Scams

Death and taxes – the two true certainties in life. And while we have to pay our taxes and file those returns to the IRS there’s another certainty: that tax services will continue to flourish offering to take away our headache for a small fee.

Although not so much scam-filled as other categories, do beware that some of the ultra-low cost or even free tax-filing services do not necessarily work out as cheap as you’d think.

Getting customers through the door with a “loss-leader” offer is common practice in many professional service industries and tax services are no exception. The unwritten convention (our brains are wired to reciprocate favors) is that they’ll do your simple first job for free but you’ll stick with them for the paid add-ons.

And it works. Some of our trusted services use this exact model to great effect.

But there are other services who do a less than stellar job, something you don’t want to be part of when the IRS is involved – and you shrug it off as being free. Until the audit comes.

Or the service that gets hold of your documents and then adds on overpriced service after overpriced service to the point that your once low-fee option ends up costing more than had you used the big office accountancy firm.

So how can you protect yourself when looking for professional business tax services?

• Only use legitimate and trusted companies, such as those we list above.
• If a deal looks too good to be true – it probably is. Look for hidden fees and service restrictions.
• Check a service company’s credentials at the BBB and with your local Chamber of Commerce if they are in-state.
• Read online reviews – is there a pattern of complaints with the company concerned?

And most importantly, your business taxes are a big deal. Get them wrong and you’re facing an unpleasant time to say the least. Is it really worth saving a few bucks when there are truly excellent services out there?