Hiring a Tax Return Preparer: How Do You Do It Right?
There’s so much challenge and responsibility into preparing and filing your income tax return. If you know you cannot do it, then it would be advisable to just hire someone who can. However, if you have to pay someone to carry out this important job, you need to make sure that you are choosing the right person. Whatever is on your tax return, the IRS will hold you liable and responsible for all of them even if you are the one who’s preparing it. A lot of companies are playing safe with choosing their tax return preparer. They often select a person who is professional, well-experienced and honest. Please read on to the next few parts of this article in order to know how you can select your tax return preparer properly.
Check the Qualifications of the Preparer
The Internal Revenue Service has a new regulation which necessitates all individuals who are paid to prepare income tax returns for companies to acquire a Preparer Tax Identification Number or PTIN. It is also important to know that aside from having a PTIN, your chosen person is affiliated with a legitimate and professional organization in your area or state. It also matters if your preparer is pursuing continuing education to give you assurance that he is aware of every new regulation on tax preparation the IRS is giving. The IRS is even providing a new test requirement for preparers who are not CPAs, attorneys and enrolled agents. The passing of said test will render one a Registered Tax Return Preparer.
Evaluate the Person’s History
Checking the history of the person before coming up with a decision to take him as your tax preparer matters a lot. The first thing you might have to do in this process is check if the person has a questionable standing with the BBB or Better Business Bureau. You may also check with the state boards of accounting for certified public accountants, the IRS Office of Enrollment for enrolled agents and state bar associations for lawyers if there had been any disciplinary action sanctioned on the preparer and what is status may be.
Check Out How Much You Will Have to Pay to the Preparer
There are different ways by which tax preparers charge their clients. But to be safe, you must not select one who charges fees on the basis of your refund percentage. Do not even choose someone who claims that he has gotten larger refunds than other tax preparers. It is also important that the preparer sends the tax refund directly to an account name of your company instead of personally.
Source: online tax return