Choosing the right tax preparer is a big decision that impacts your financial well being.
Given that Taxpayers are ultimately responsible for all the information on their federal income tax return, regardless of who prepares the return, it is obviously very important to pick an honest and qualified Preparer.
By law, anyone who is paid to prepare or assists in preparing federal tax returns must have a valid Preparer Tax Identification Number. Paid preparers must sign and include their PTIN on any tax return they prepare. Not signing a return is a red flag that the paid preparer may be looking to make a quick profit by promising a big refund or charging fees based on the amount of the refund. Taxpayers should avoid these preparers at all cost. (Pun intended)
Other tips to ensure you choose a legitimate and qualified Tax Preparer:
- Availability: Look for a preparer who’s available year-round in case questions come up after filing season is over. Businesses that are only open or available during Tax Season will not be available later in the year when the IRS may contact Taxpayers with issues.
- Consistent service fees: Ask about HOW the Preparer calculates their fees. While no tax preparation service can accurately quote prices up front given the complexity inherent in tax preparation, Taxpayers should avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of the refund into their own financial accounts. Most reputable tax preparation services base their fees on the number of forms involved and/or complexity involved in the Taxpayers return.
- IRS e-file: Ensure their preparer offers IRS e-file. The IRS issues most refunds in fewer than 21 days for taxpayers who file electronically and choose direct deposit.
- Records and receipts: Good preparers will ask to see these documents when filing a return. Not asking about these records is a red flag that the Preparer is not doing their due diligence.
- Qualifications: Ask about the preparer’s credentials and qualifications .
- Complete returns: Never sign a blank or incomplete return. Taxpayers are responsible for filing a complete and correct tax return.
- Mistakes: Taxpayers should make sure to review their tax return before signing it, and ask questions if something is not clear or appears inaccurate.
- Accurate account information: Double check that any refund will go directly to CORRECT bank account – not into the preparer’s bank account. Review the routing and bank account numbers on the completed return and make sure they’re accurate.
IRS resources for choosing the right tax preparer:
- The Choosing a Tax Professional page on IRS.gov has information about tax return preparer credentials and qualifications.
- The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help identify many preparers by type of credential or qualification.
How to report preparer misconduct:
Taxpayers can report preparer misconduct to the IRS using Form 14157, Complaint: Tax Return Preparer. If a taxpayer suspects a tax return preparer filed or changed their tax return without their consent, they should file Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit. Both these forms are available on the Make a Complaint About a Tax Return Preparer page of IRS.gov
Wateree Business & Tax Service 