Whether you pay someone to do your taxes or do them yourself, you are still responsible for preparing an accurate return, not the person you pay to do it for you. Therefore, if you feel better is a professional prepares your tax return, the IRS has issued a special report containing helpful suggestions for you to consider when choosing a tax adviser.
You may not think so, but the IRS does want you find the best person possible to do your returns because mistakes cost everyone time and money. Therefore it has come up with eight points you should keep in mind when choosing someone else to prepare your tax return:
1. First, check the person’s qualifications. Ask the preparer if he or she 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 attorneys, CPAs and enrolled agents to apply for a Preparer Tax Identification Number (PTIN)— even if they already have one — before preparing any federal tax returns in 2011.
2. Second, check on the tax preparer’s history to see if he or she has a questionable history with the Better Business Bureau. Also 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.
3. 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.
4. Make sure the tax preparer is accessible and that 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.
5. 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 a number of questions to determine your total income and your qualifications for expenses, deductions and other items.
6. Never sign a blank return. In fact, avoid tax preparers that ask you to sign a blank tax form.
7. Review the entire tax return before signing it. If you don’t understand something, ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.
8. Make sure the preparer also 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 still ultimately responsible for the accuracy of every item on your return. The preparer must also give you a copy of the return.
If you find yourself with an abusive tax preparer or suspect any tax fraud, you can report them to the IRS. You can do this by using Form 3949-A which you can download by going to www.irs.gov or order a form by mail by calling 1-800-TAX-FORM (800-829-3676). You can also simply send a letter to: Internal Revenue Service, The Office of Professional Responsibility, Fresno, CA 93888.
