Tips for a Happy Return

Many taxpayers are capable of doing their own returns but may not have the time--or the patience. But even those who hire help should spend some time making sure they get the right professional.

Once you’ve decided which route you want to take, here are some tips to keep in mind:

For Do-It-Yourselfers

* Get started early: Give yourself enough time to gather necessary forms, read the instructions and research any difficult topics.

If you find you can’t finish your return on your own, an early start means you’ll have time to search for a good tax pro and avoid a panicked, last-minute scramble.

* Get a good tax guide: IRS Publication 17, “Your Federal Income Tax,” is a fairly comprehensive and readable guide--and it’s free. Tax help books such as “J.K. Lasser’s Your Income Tax 2001” use Publication 17 as a starting point, adding helpful tips and warnings along the way.

* Consider software: Intuit’s TurboTax and H&R; Block’s TaxCut offer a question-and-answer format that can point out deductions, credits and tax traps you might otherwise miss.

These programs also are helpful in preparing California state tax returns, which can be surprisingly complex.

Both companies also have Web-only versions of their software and offer professional help for a fee.

For Those Seeking Help

* Determine how much help you need: You don’t need to pay a CPA to file a 1040EZ--neither should you have a storefront chain tackle your business’ corporate filing. Match the complexity of your return with the appropriate level of expertise and cost.

* Ask lots of questions: Find out what credentials your tax preparer has, what types of returns he or she typically prepares and how much the return is likely to cost. (You might want to get the cost estimate in writing.)

* Get on the same wavelength: More complex returns can require judgment calls. If you’re terrified of an audit, find a preparer who’s conservative. If you’re a risk-taker, make sure your pro is comfortable taking an aggressive approach.

* Beware of fraud: Don’t sign a blank return or agree to have a refund sent anyplace other than to your address. Don’t work with a preparer who guarantees you a refund upfront or who refuses to sign your return.

--Liz Pulliam Weston