January 28, 2011
Our Top Tax Tip: How To Choose A Tax Preparer
What’s so important about choosing the right tax preparer? As a taxpayer, you are legally responsible for what’s on your tax return even if someone else prepares it. Therefore, it is important to choose carefully when hiring an individual or firm to prepare your return. Most return preparers are professional, honest and provide excellent service to their clients.
How do you know if you’re choosing the right tax preparer? Here are some tax tips for choosing a tax preparer:
- Check the person’s qualifications
Ask if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and holds them to a code of ethics. New regulations require all paid tax return preparers including tax attorneys, CPAs and enrolled agents to apply for a Preparer Tax Identification Number — even if they already have one — before preparing any federal tax returns in 2011. - Check on the preparer’s history
Check to see if the preparer has a questionable history with the Better Business Bureau and check for any disciplinary actions and licensure status through the state boards of accountancy for certified public accountants; the state bar associations for attorneys; and the IRS Office of Professional Responsibility for enrolled agents. - Find out about their service fees
Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers. - Make sure the tax preparer is accessible
Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case questions arise. A good tax preparer will also provide you help in answering your tax questions. - Provide all records and receipts needed to prepare your return
Most reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items. - Never sign a blank return
What are you crazy? Avoid tax preparers that ask you to sign a blank tax form. - Review the entire return before signing it
Another one of the top ten tax tips is that before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it. If not ask for answers to your tax related questions. - Make sure the preparer signs the form and includes their PTIN
A paid preparer must sign the return and include their PTIN as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return. The preparer must also give you a copy of the return.
You can report abusive tax preparers and suspected tax fraud to the IRS on Form 3949-A, Information Referral or by sending a letter to Internal Revenue Service, Fresno, CA 93888. For additional tax help or tax tips visits the IRS website.
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