Many taxpayers ask for a copy of their prior year tax return. If you had a qualified tax preparer complete your them, you can start with asking them for a copy. But be forewarned, some qualified tax preparers will charge you up to $10 per copy. So what are your other choices?

You can contact the IRS for a copy of the tax returns or ask them for a transcript. The IRS will provide you a copy of your tax return, however, a transcript will provide the information they need more quickly. Transcripts provide taxpayers with a computer-created record of their tax return which includes most of the line-items as filed with the IRS, including any accompanying forms and schedules. The transcript does not reflect any changes the taxpayer, his/her representative, or the IRS made after the return was filed.

To download Form 4506 (Request for Copy of Tax Return) or Form 4506T (Request for Transcript of Return), refer the taxpayer to this IRS.gov webpage.

Other notes:
If you were impacted by a federally declared disaster, you may request copies by phone at 1-866-562-5227 (Hours of operation are 7 a.m. to 10 p.m., Monday-Friday, your local time – except Alaska and Hawaii which are Pacific time.) Otherwise, you may call the IRS information line at 1-800-829-1040.
If the taxpayer used a professional preparer to prepare the prior year’s return, he/she can request a copy of the return from the preparer. If they need help locating the preparer, the Electronic Return Originator data base may help.
To request copies in person, you may refer taxpayers to the nearest Taxpayer Assistance Center (TAC).

Most of us choose a tax preparer to file our income taxes. Here are some tips to consider when choosing a tax payer:

Regardless of who you choose, your are responsible for what’s on your tax return. Here are things to remember when someone else prepares your return:

• Paid tax preparers are required by law to sign the return and fill in the required tax preparer areas on the tax form. The tax preparer must include their identifying number on the return. Even though the tax preparer signs the tax form, you are ultimatelty responsible for the accuracy of your return. And you must be given a copy of the retun.
• Review the tax form once it is completed. Check to make sure all personal information is complete and accurate and there are no omissions.
• Never, ever sign a blank return and sign your tax return with a pencil.
• If you have provided specific authorization in a power of attorney filed with the IRS, you may have copies of notices or refund checks mailed to your preparer or representative; but only you can sign and cash your refund check.
• A Third Party Authorization Check Box on Form 1040 allows you to designate your Paid Preparer to speak to the IRS concerning how your return was prepared, payment and refund issues and mathematical errors.

Having a unqualified person complete your taxes is not a good idea. They may overlook legitimate deductions and credits that may cause you to pay more then you should. What’s worse, unqualified preparers may also make costly mistakes causing their clients to incur assessed deficiencies, penalties, and interest. Here are some suggestions to consider when hiring a tax professional:

• A paid preparer must sign the return as required by law.
• Avoid preparers who claim they can obtain larger refunds than other preparers. If your returns are prepared correctly, every preparer should derive substantially similar numbers.
• Beware of a preparer who guarantees results or who bases fees on a percentage of the amount of the refund. A practitioner may not charge a contingent fee (percentage of your refund) for preparing an original tax return.
• Understand that the most reputable preparers will request to see your receipts and will ask you multiple questions to determine your qualifications for expenses, deductions and other items. By doing so they have your best interest in mind and are trying to help you avoid penalties, interest or additional taxes that could result from an IRS examination.
• Choose a preparer you will be able to contact and one who will be responsive to your needs. Ask who will actually prepare the return before engaging services. Avoid firms where your work may be delegated down to someone with less training or some unknown worker. You should know exactly who works with your tax matters at all times and how to contact him or her; after all, you are paying for it. Determine if the preparer is exporting your return to a foreign country for preparation. Foreign countries do not have the same security and privacy laws as the United States nor is there any recourse should your information be compromised as a result of lax or nonexistent privacy procedures.
• Investigate whether the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs, the state’s bar association for attorneys or the IRS Office of Professional Responsibility (OPR) for enrolled agents or the oversight agency in states that license or register tax preparers.
• Determine if the preparer’s credentials meet your needs or if your state mandates licensing or registration requirements for paid preparers. As of 2008, California and Oregon are the only two states that regulate paid tax preparers. Is he or she an Enrolled Agent, Certified Public Accountant (CPA) or Tax Attorney? Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection actions and appeals. Other return preparers may represent taxpayers only in audits regarding a return that they signed as a preparer.
• Find out if the preparer is affiliated with a professional organization that provides or requires its members to pursue continuing education and holds them accountable to a code of ethics.
• Check IRS.gov for information regarding abusive shelters and other tax schemes and scams. Remember, if it sounds too good to be true, chances are it is.

The IRS can help many taxpayers prepare their own returns without the assistance of a paid preparer. For information on
e-file for Individual Taxpayers
Free File
Free Tax Preparation For You by Volunteers

Unfortunately, unscrupulous tax return preparers do exist and can cause considerable financial and legal problems for their clients. Examples of improper actions by unscrupulous preparers include the preparation and filing of false paper or electronic income tax returns that claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions.

source=irs.gov

President Barack Obama’s choice for Treasury secretary, Timothy Geither, failed to pay all of his taxes while while working at the International Monetary Fund.  

“These were careless mistakes,” Geithner told members of the Senate Finance Committee during his nearly four-hour confirmation hearing. “They were avoidable mistakes, but they were unintentional. I should have been more careful. I take full responsibility.”

Geithner, who is the current president of the Federal Reserve Bank of New York, has been under fire since it was revealed last week that he did not pay his taxes in full while at the IMF from 2001 to 2004. International organizations such as the IMF are exempted from Social Security taxes, so U.S. citizens who work there are supposed to pay them as if they are self-employed. Geithner did not.

Geithner, who as Treasury secretary would be in charge of the IRS, paid back taxes for 2003 and 2004 after an IRS audit in 2006. Geithner paid further back taxes and interest after similar problems for his 2001 and 2002 returns were discovered during vetting by the Obama team.

Geithner made no excuses of his error.  He fessed up to the fact that the documents he signed while an employee at the IMF were very clear in telling workers how to file their taxes.

A number of senators, including both Republicans and Democrats, appeared to accept his assertion that he made an innocent error. He is expected to be confirmed by the Senate. The Finance Committee is expected to vote Thursday.

“You come to this committee with a great reputation for integrity,” Sen. John Kerry, D-Mass., said. “And I accept completely the explanation you have given us with respect to the mistakes on your tax returns.”

But others, including Sens. Jon Kyl, R-Ariz., and Jim Bunning, R-Ky., said they could not understand how Geithner could make such an error and questioned why he didn’t realize he owed money for the entire time he was at the IMF when the IRS audit originally uncovered the problem. Bunning displayed a blown-up copy of a form Geithner signed while at the IMF that outlined his tax obligations.

“When you found out what you had done wrong, it is incomprehensible to me that you did not immediately realize that you had done it wrong for the entire time that you had been at the IMF,” said Kyl, who accused Geithner of “dancing around” his questions on the issue.

“I took the audit very seriously,” Geithner responded, noting he should have asked more questions at the time of the audit. “I hired an accountant to go back and help me figure out what I’d done wrong and how to correct it. I paid what the IRS said I owed.”

Several lawmakers, including Sen. Pat Roberts, R-Kan., said the tax issue made their constituents angry about President Obama’s pick for Treasury secretary.

“After that was reported, my phone lines lit up,” Roberts said, while noting he did not think the issue was enough to stop Geithner’s confirmation. “And I’ll leave it there, except to say that if you did not pay these taxes simply because it was a matter of oversight and confusion, Mr. Chairman, we have a wonderful example I think and the best case yet for undertaking reform to make the tax code simpler for all taxpayers.”

The role of the Treasury secretary, if nominated, would be to oversee the financial rescue efforts and overall tax policy. In addition to facing huge policy changes, high unemployment and a deepening recession, he would also contend with major political challenges.

Republicans, while pledging to work with Obama, said Wednesday that they are skeptical of his plan to spend hundreds of billions on schools, roads, bridges and other projects.

Further, lawmakers from both parties are angry about the way former Treasury secretary Henry Paulson managed the first $350 billion of the $700 billion financial rescue package passed last year. Paulson pressed Congress to pass the $700 billion measure in October so he could buy up troubled assets that weighed down the balance sheets of banks, depressing lending.

But Paulson changed course and instead used most of the initial $350 billion commitment of funds to inject capital into U.S. banks. Paulson didn’t use the money to ward off home foreclosures, despite urging from Congress.

The Senate last week voted to release the final $350 billion in remaining funds, but only after the incoming administration promised to use up to $100 billion to address the foreclosure crisis and also promised more oversight and consultation with Congress.

Most experts believe that despite Geither’s tax error, he will get the confirmation and become the next Treasury secretary.

source: usatoday, msnbc.com